The existing YFI ilk — and Yearn in particular — have proven both profitable and less likely to experience liquidations than most other ilks. Allowing for an ilk that serves even more conservative users will steady both our profits and lower our risk. Note that ~65% of stability fee revenue is derived from ETH-A alone, and diversification of both collateral and user risk profile is essential for Maker to grow.
On a more strategic note, these large users — of which Yearn is not in the top 5 — provide most of our revenue and most of our business. Their needs are our needs, as they provide steady revenue based on an underlying business rather than “degen” market speculation. This makes the entire crypto ecosystem more stable, while the DAI they mint pushes our product in front of more users.
These customers want to do business with us, have deep needs we can serve, advertise our product by their very usage of it, and experience tells us they are far less likely to be liquidated than smaller vault users because of sophisticated management techniques and more skin in the game.
This is the way forward for Maker’s financial empire to both grow profits and grow the user base we serve.