Yearn Finance advocates for the adoption of ERC-4626 tokenized vault standard

April 6, 2022 Coin Telegraph

The widely-popular DeFi protocol announced its support for the newly-passed ERC on Wednesday, stating that Yearn V3 plus ERC-4626 equals "Inevitable.”

Following the successful deployment of twenty-five previous Ethereum Request for Comments (ERC) standards, including the industry-recognized ERC-20 designed for tokens, ERC-721 for nonfungible tokens (NFTs), and the single smart contract multi-token ERC-1155; the newly-passed ERC-4626 is gaining traction within the Ethereum community for its purported yield-bearing benefits.

Referred to as the “tokenized vault standard,” ERC-4626 is set to be implemented at the next Ethereum fork upgrade following approval by the developers within Ethereum’s governance procedure.

Serving as an addition to ERC-20 — and considering the utilization of under-review EIP-2612 for the approval shares user experience (UX) — the ERC-4626 standard is expected to enact wide-scale benefits across Ethereum’s decentralized finance (DeFi) ecosystem, enhancing the composability and accessibility of yield-bearing vaults across multiple networks.

As an application programming interface (API), much of the implementation will occur behind the scenes within the network's operation, and therefore will not be particularly visible on the user-end dashboard, but will be immensely valuable for their participating experience.

One of the primary attractions to interacting with DeFi protocols for the retail market is their positively disproportionate yield generation in comparison to traditional banking bond accounts and savings offerings.

Yield-bearing assets such as SushiSwap’s xSushi, Aave’s aToken, or Yearn Finance’s yToken, enable users to stake the network's native tokens for a wrapped version, benefiting from both the acquired liquidity and interest earned.

However, as Yearn Finance succinctly points out, “to build a single app on top of DeFi's yield-bearing tokens, you have to write dozens of complex, error-prone adapters that can handle each unique variation", as well as that if you “build an app on top of one ERC-4626 vault... it will work for all other ERC-4626 tokens.”

5/ Yearn V3 + ERC-4626 = inevitable

Contributors are already working hard implementing the standard for Yearn’s V3 vaults

So are devs at @AlchemixFi, @balancer, @RariCapital, @feiprotocol, @OpenZeppelin and elsewhere

Perhaps one day, we’ll even see a Erc4626 tab on @etherscan
— yearn.finance (@iearnfinance) April 5, 2022

The concept for ERC-4626 was initially pitched on Dec. 22 as an Ethereum Improvement Proposal (EIP) by five authors led by the founder of Fei Protocol, Joey Santoro.

According to an anecdotal story from co-author t11s, the 4626 number was birthed during an exercise workout, noting that the melodic rhyming pattern sounded more appropriate for the title of their invention than the more monotonous 4700 for instance.

Fundamentally viewed as a protocol standard designed to optimize and unify the technical parameters of yield-bearing vaults, the proposition swiftly sparked discussions, suggestions and rebuttals on open-source development platforms Github, Ethereum Magicians and crypto native social media Twitter, with a largely positive consensus noted throughout the community.

One responder named albertocuestacanada highlighted a concern with the potential impact of language regarding the calculateShares required to equal sharesAmount section, arguing that this would prevent vaults from implementing deposit or withdrawing fees. Santoro soon revised this section “in favor of a better invariant related to it returning the same value as a mint/deposit call in the same transaction.”

The ERC-4626 Tokenized Vault Standard is ready for final review

Get your giga chad brains churning on how this standard will revolutionize DeFi

Be sure to share any proposed changes on the thread: https://t.co/ArchwpUNn4

Here is a summary of the proposed design
— Joey ’s ERC-4626 (@joey__santoro) January 12, 2022

Finance Redefined: DeFi ‘Godfather’ Cronje quits, CAKE launches $100M venture arm and more

March 11, 2022 Coin Telegraph

Finance Redefined: DeFi ‘Godfather’ Cronje quits, CAKE launches 0M venture arm and more

Coin Telegraph

In this week's DeFi newsletter, we will look at the Andre Cronje debacle, the Polygon upgrade, the rise of ThorChain and the growing value of the DeFi ecosystem with synthetic assets.

The decentralized finance (DeFi) ecosystem had quite an eventful week with several new developments and price action. The week started with DeFi “Godfather” Andre Cronje announcing his departure from most of his projects, leading to a massive drop in prices of projects that Cronje was associated with.

CAKE DeFi launched a new $100 million venture fund to support Web3 initiatives, ThorChain spiked over 34% after activating synthetic assets and Polygon network suffered an extended outage post new upgrade that impacted its price momentum.

DeFi “Godfather” Cronje quits as TVL and tokens tank for related projects

DeFi architect, Fantom Foundation technical adviser and Yearn.finance founder Andre Cronje has left the decentralized finance space reeling after deactivating his Twitter account.

Cronje’s long-time colleague at the Fantom Foundation Anton Nell stated in a Sunday tweet that both he and Cronje were leaving the crypto space entirely. However, concerns arose about the fate of roughly 25 decentralized applications (DApps) and services they have been operating up to now. Among the affected apps and services are yearn.fi, keep3r.network, multichain.xyz, chainlist.org, bribe.crv.finance and the new solidly.exchange.

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Cake DeFi launches $100M venture arm for Web3, gaming and fintech initiatives

Singapore-based decentralized finance services firm Cake DeFi announced the launch of a $100 million venture arm dedicated to serving as accelerators for Web3, gaming, nonfungible tokens (NFT) and other crypto initiatives.

The newly launched $100 million venture arm, Cake DeFi Ventures (CDV), will fund crypto startups that complement the company’s core business. According to Cake DeFi, the venture firm “will be focused on investing in tech startups across Web3, the metaverse, the NFT space, gaming, esports and fintech spaces.”

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THORChain spikes by 34% after activating synthetic assets

The price of the native asset for cross-chain decentralized exchange THORChain (RUNE) has spiked by 34% in a day following the activating of synthetic assets on the network.

THORSwap Finance highlighted the advantages of the synthetic assets via a Thursday blog post, noting that “synths have great utility for traders and arbitrageurs, as they can be transacted nearly instantly and at a fraction of the cost compared to native L1 swaps.”

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Polygon network suffers from extended service outage after upgrade

Layer-2 Ethereum scaling solution Polygon has not produced a new block for over 11 hours, with developers attributing the issue to a technical upgrade on the network.

On March 10, 4:20 pm UTC, Polygon network developers notified users on the project’s forum that there would likely be downtime starting at about 5:50 pm UTC due to maintenance required on one of the network’s three layers. A recent upgrade is thought to have caused an error in the network’s ability to achieve consensus.

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DeFi market overview:

Analytical data reveals that DeFi’s total value locked has maintained a similar value to the last week with a minor increase, reaching a figure of $111 billion.

Data from Cointelegraph Markets Pro and TradingView reveals that DeFi’s top 100 tokens by market capitalization performed reasonably well across the last seven days.

The weekly performance of the majority of the DeFi tokens has remained flat, with most of them either traded in green/red with a single-digit percentage change. Terra (LUNA) maintained its dominance for the third week in a row, rising by over 8% in the past week, rising to a new all-time high above $104. Ankr (ANKR) registered a 7% gain over the past week, followed by ThetaFuel (TFUEL) with a 1% overall gain.

Before you go!

A week that didn’t see much in terms of price action, but the likes of ThorChain and LUNA continued to defy the market trends aided by their synthetic asset ecosystem. The gas fee on Ethereum has plummeted to a nine-month low. Data shows that the average gas price on Ethereum has been dropping rapidly since the start of the year, plunging from 218 Gwei on Jan.10 to 40.82 on Wednesday.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically advancing space.

Ethereum Rival Fantom (FTM) Crashes 25% After Abrupt Departure of DeFi Developer Andre Cronje

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Yearn Finance risks pullback after YFI price gains 100% in less than 3 weeks

January 3, 2022 Coin Telegraph

Altcoin Watch

The recent bout of buying in the Yearn Finance market accompanies meager volumes, suggesting there are not enough buyers backing YFI's price rally.

Yearn Finance (YFI) looks poised for a price correction after rising five days in a row to approach $42,000. Notably, an absence of enough buying volume coupled with overbought risks is behind the bearish outlook.

The YFI price rally so far

YFI price surged by a little over 47% in five days to $41,970 as traders rotated capital out of "top-cap" cryptocurrencies like Bitcoin (BTC) and Ether (ETH) and looked for short-term opportunities in the altcoin market.

#DeFi assets are showing some nice signs of growth to kick off 2022. $YFI, $UNI, and $AAVE are all ticking up nicely thus far with the first Monday of the year looking #bullish for several #altcoins. https://t.co/8ujolCvt5z pic.twitter.com/ASpf1dUbtn
— Santiment (@santimentfeed) January 3, 2022

Yearn Finance was among the beneficiaries of the so-called capital migration, given its value against BTC and ETH rose almost 47% and 41.50% in just five days. Meanwhile, at the core of traders' sudden buying interest in the YFI markets was a token buyback program.

*YFI/ETH and YFI/BTC daily price performance after token buyback program announcement. Source: TradingView*

On Dec. 16, the Yearn Finance team announced that they had purchased more than $7.5 million worth of YFI tokens from the open market at an average price of $26,651 per unit. They also revealed $45 million extra cash in their Treasury that they would use to continue their YFI buyback spree.

Additionally, the Yearn Finance community also proposed that the YFI treasury direct a portion of the token buyback to reward YFI holders who actively participate in Yearn Governance. The proposal (full details here) is currently in its voting phase.

1/8

Since the cat is out of the bag here:

-Yearn has started massively buying back YFI.

-They are revisiting their tokenomics to do a fee distribution to holders, currently looking at veCRV model and xSushi models.

-The ratios are insane. https://t.co/CzuHhbNuhx
— Adam Cochran (@adamscochran) December 16, 2021

YFI price surged by more than 100% against the U.S. dollar after the token buyback announcement.

YFI price correction risks

However, YFI trading volume fell despite the rall, suggesting the low conviction among traders in its upward movement.

*YFI/USD daily price chart featuring price-volume divergence. Source: TradingView*

Typically, a bearish divergence between price and volume leads to either correction or consolidation till conviction increases. As a result, the likelihood of YFI at least pausing its ongoing price rally is high, with its daily relative strength index (RSI) also entering its overbought zone above 70, a sell signal.

Additionally, the Yearn Finance token's latest price rally has brought it closer to a known inflection zone near $40,000, as shown via the Fibonacci retracement graph in the chart below.

*YFI/USD three-day price chart featuring Fib entry and exit levels. Source: TradingView*

In detail, the 0.618 Fib line near $40,113 has been limiting YFI's upside attempts intraday. The same level was instrumental in stopping the Yearn Finance token's price rally between October and November, which later led the YFI price to its 12-month low near $17,000.

Nonetheless, if the bulls manage to push the YFI price above the 0.618 line decisively, they may also take the token out of its multi-month range defined by circa $25,500 as support and $40,000 as resistance. In that scenario, YFI's next upside target may move towards the 0.5 Fib line around $51,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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