yEarn Finance
These Five Emerging Crypto Assets Are Heating Up, Says Trader Michaël van de Poppe
Closely-followed crypto analyst Michaël van de Poppe is naming five altcoins within the decentralized finance (DeFi) space that he thinks have the potential to print massive gains. In a new strategy session focusing on BTC pairs, Van de Poppe starts off his list with AAVE, saying that the money market protocol has entered a new […]
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Yearn Finance Taps into Crypto’s Unit Bias With Woofy Token
Yearn Finance surges 45% as it joins dog pack with WOOFY
Yearn Finance is up nearly 45% in 24 hours, and it appears to be thanks to the team’s new dog token offering a bi-directional peg to YFI.
Despite Dogecoin retracing from its all-time highs above $0.70, dog tokens continue to attract astonishing levels of popularity, with DeFi “blue-chip” Yearn Finance emerging as arguably the most prominent team seeking to cash in on the canine meme coin craze with the launch of its WOOFY token.
But the YFI fans jumping in early may not have fully understood the coin’s utility which saw the price sail into the stratosphere.
Whisperings of the new project began to circulate on Twitter over the past 24 hours, with users associated with Yearn hinting at a new token called WUFFY. Rumors of an airdrop for users who posted a picture of themselves being licked a dog and tag Yearn developer “Banteg” saw a flood of face-lick photos uploaded to Twitter.
0xc48c2a188651A089432229F0A131009a2ee24660
— Max Crypto Headroom (@maxcryptohead) May 11, 2021
I though it was a joke but as I see everybody on it, here I am @bantg $Wuffy 4 the win pic.twitter.com/VRvmGEZGfX
As is quickly becoming the norm for new releases from the Yearn team, fans in the community raced to purchase the new token before fully understanding its utility.
Despite WOOFY’s sole function being to offer a means to redenominate YFI holdings — with the Woofy Finance interface offering bi-directional YFI to WOOFY conversions at a ratio of 1:1 million, over-exuberant buyers pushed the price of WOOFY so high as to imply YFI’s to be $1.5 million per token.
As of this writing, YFI is trading for roughly $88,200 after gaining 43% in 24 hours.
$1.5 per woofy means you essentially paid $1.5million for $yfi
— Eth Lab ⟠ (@EthLaboratory) May 11, 2021
Community sentiment appears divided regarding WOOFY, with Twitter user “BrotherMuozone” concluding that looking like “an unsavory attempt to milk vale out of the new suckers in the market,” adding the experiment actually comprises “a brilliantly timed and themed ‘unit bias a/b test’” offering insights into whether traders prefer tokens with a larger circulating supply and lower fiat price versus a low supply and high token price.
Although whether traders choose to hodl WOOFY or YFI is arbitrary, with traders’ preference for one token over the other having no impact on Yearn’s overall market cap, the introduction of WOOFY may reduce the volatility of YFI’s price by creating arbitrage opportunities between the two tokens.
As of this writing, WOOFY last changed hands for $0.09, implying a roughly 3% premium over YFI.
According to Dextools, nine of the top 10 most-viewed pairings on Uniswap V2 are dog tokens.
Two way peg means its impossible for woofy to trade at a premium to yfi for any significant amount of time
— Hayden Adams (@haydenzadams) May 11, 2021
Imo this is just a weird way to transfer wealth from unsophisticated users to arbitrage bots and Ethereum miners https://t.co/CUKig4fHeW
Yearn Finance price nearly hits $70,000 — What’s driving the YFI bulls?
Traders have flocked into the Yearn Finance's YFI markets as their upside opportunities in other top tokens subside.
A lackluster cryptocurrency market did little in offsetting Yearn Finance's bullish bias as the price of its governance token YFI reached new record highs in USD terms on May 11 — just shy of $70,000.
YFI price hits new highs in USD
The YFI/USD exchange rate added $6,258, or 10.02%, to reach $68,748 ahead of the London opening bell. The pair quickly retraced lower as traders decided to realize their profits, hitting roughly $67,067 as of 0736 UTC. Nevertheless, the drop appeared marginal compared to the prevailing uptrend, hinting that YFI could continue its upward momentum following a short-term consolidation period.
The token performed equally well against Bitcoin (BTC), the flagship cryptocurrency whose own uptrend slowed down after hitting a milestone high of roughly $65,000 last month. Tuesday morning, the YFI/BTC exchange rate was near its five-month high of 1.192 BTC. Meanwhile, at its intraday peak, the pair's bid was 1.247 BTC, up 58%.
The massive upside moves in the Yearn Finance token market appeared as its top rivals underperformed severely. At first, Bitcoin continued to show weakness after failing to log a breakout above a psychological resistance level of $60,000. Its strong positive correlation with other top digital assets also pushed their prices lower.
For instance, Ether (ETH), the second-largest cryptocurrency by market cap, plunged back below $4,000 on profit-taking sentiment.
Meanwhile, the biggest losers on a 24-hour adjusted timeframe were Dogecoin (DOGE), XRP, Polkadot (DOT), and Litecoin (LTC). Each fell within the range of 9%-12%, again due to traders' inclination to withdraw profits after the tokens' supersonic price rallies in the previous sessions.
Yearn Finance's YFI was comparatively weaker so far in 2021. The token would surge by almost 160% compared to its altcoin peers' thousands of percentages worth of upside gains. For instance, Dogecoin remained a scene-stealer for most of the first and second quarters, rising by more than 19,000% to eventually outshine other large-cap altcoins.
Technically, YFI served as a hedge as the rest of the cryptocurrency market returned from their overbought levels. But looking closely, what worked in the favor for the Yearn Finance token — at least in the current quarter — is its ability to cast aside a flurry of its major issues.
Banking infrastructure for DeFi
In retrospect, Yearn had a rocky beginning in 2021. Its main problem heading into the year was funding deficits. The Yearn Finance group had no reserves set aside for its core contributors that limited it from gaining any upside exposure. Andre Cronje, the creator of the Yearn Finance protocol, even shared his frustration by writing a blog titled, “Building in DeFi Sucks”.
However, the following weeks witnessed huge community involvement to solve the reserves issue. The YFI holders introduced two proposals and passed them through a democratic vote. The first “Buyback and Build” upgrade assisted in introducing a buyback program that added YFI to their treasury for redistribution.
Meanwhile, the second “Funding Yearn's Future” proposal minted 6,666 new YFI tokens to create the protocol treasury, with a primary focus on funding core contributors.
The next major upgrade came in the form of Yearn V2. Its mid-January launch earlier met with negative reviews due to user interface issues. But the team responded promptly to address those concerns to a successful conclusion. In the months following the fix, the total value locked inside the Yearn Finance pool has climbed to $4.243 billion.
The most notable changes Yearn V2 brought to the Yearn Finance protocol included a new fee structure, multi-strategy vaults, and highly differentiated strategies with the help of a new ecosystem partnership with Cream. YFI prices responded bullishly to the events.
Frax Finance, a fractional-algorithmic stablecoin protocol, has added its fixed yield asset FXB to Yearn vaults. Meanwhile, Alchemix is also building a credit system atop their protocol, confirming that Yearn is becoming a banking alternative to the decentralized finance ecosystem.
Absolutely epic H6 close on $YFI, no other bnf futes showing this degree of rel strength at the moment, and $YFIBTC looking primed for continuation. pic.twitter.com/hutUBRONuJ
— cuban (@cubantobacco) May 11, 2021
The YFI rally takes its long-term bullish cues from the said growth prospects.
Yearn Finance Founder Andre Cronje Set to Fight the Rug Pulled Crypto Messiah in a Dubai Boxing Match
South African crypto entrepreneur and Yearn Finance founder, Andre Cronje, is set to brawl Crypto Messiah in a physical fight at a Dubai crypto conference. The event, which has been dubbed the Cryptocurrency International boxing match, is scheduled to take place on October 15. Pledged Prize Goes to Charity According to organizers of the fight, […]Top Analyst Unveils Bullish Targets for Ethereum and 3 DeFi Altcoins
Widely-followed crypto trader and analyst Smart Contracter is calling for big rallies in three DeFi coins, and remains bullish on Ethereum despite its recent gains. The analyst says that Ethereum has officially given traders the “God candle,” with its 71.1% rally in seven days. When it comes to ETH/BTC, Smart Contracter says now is not […]
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Yearn Finance made almost as much as in March as it did in 2020
Fees from yVaults were the biggest contributors to Yearn’s revenue.
Decentralized finance yield aggregator Yearn has released its financial report for the first quarter revealing some impressive earnings for the period.
According to the Yearn Finance quarterly report, published on GitHub on April 27, the platform had earnings of $4.88 million for the quarter.
Declaring that these were earnings before interest, taxes, depreciation, and amortization, or EBITDA, Yearn Finance has made more in the first three months of 2021 than it did in its six operational months in 2020, which totaled $3.7 million.
Earnings for March alone totaled $3.16 million which alone was almost as much as its operational six months for the previous year. Not every month broke records, however, and in January and February this year, the DeFi protocol earned $528K and $1.19 million respectively.
The report stated that the yVault product line is the leading revenue generator and remains critical to Yearn’s core business. Vaults employ strategies to automate the best yield farming opportunities available by staking on other protocols. The version 2 vaults launched in January have increased top-line revenue for the period.
There were 36 new yVaults launched in the first quarter including five new v2 vaults. The y3CRV vault, which consists of three stablecoins — USDT, USDC, and DAI — was the most profitable generating $1.1 million in revenue for the quarter. A similar report from 2020 revealed that two-thirds of its revenue at the time came from the yUSD vault.
The yYFI vault saw a large increase in revenue for March as the protocol encouraged yield farmers to migrate to the v2 vault generating more income.
Previously, Yearn Finance earned its money from withdrawal fees with v1 vaults, some of which are still running, taking 0.5% when the collateral is withdrawn. The fee structure changed slightly when v2 vaults were launched, with the elimination of the withdrawal fee and the addition of a 2% management fee and a performance fee which can be as high as 20%. It claims the aim is for users to pay the most fees on the vaults that are performing the best.
The protocol launched yield farming with treasury assets in late February which also started to generate significant earnings. Yearn formed a committee to begin earning yields on idle assets held in its treasury with capital obtained from opening CDPs (collateralized debt positions) on other DeFi protocols such as MakerDAO.
“yVault revenue was the key driver of adjusted EBITDA [earnings], however, we anticipate Treasury yield farming to contribute an increasing amount of revenue in the future.”
At the time of writing, the total value locked on the protocol was a little over $3 billion according to DappRadar.
wNews: How a Dogecoin Pump Upstaged the Coinbase Listing
Is DeFi yield appetite rising again? Enso raises $5M as YFI hits new highs
Enso raises $5 million from top funds and YFI price hits a new record high as the demand for DeFi yield rises.
The appetite for DeFi is rising again as blue chips are rallying and yield-earning strategy-sharing platforms, like Enso, are on the rise.
Enso, a platform where users can share yield-earning strategies, raised $5 million on April 13 from top U.S. venture capital firms including Polychain Capital and Multicoin Capital.
Synthetix (SNX) founder Kain Warwick, Aave founder Stani Kulechov, Dfinity COO Artia Moghbel, and other prominent angels took part in the round.
The high-profile fundraising round comes as Yearn.finance (YFI) achieved a new all-time high above $50,000.
Why is the demand for yield-earning protocols rising?
Protocols like YFI are seeing significant demand once again as DeFi blue chips start to rally off of Bitcoin (BTC) and Ether (ETH) hitting record highs.
The appetite for high-risk and high-return plays is clearly increasing, as the cryptocurrency market as a whole enters price discovery.
The term price discovery refers to a technical trend when the price of an asset or the valuation of a market hits a new all-time high.
From late February to mid-March, the total value locked (TVL) of DeFi asset management protocols dropped off quite significantly from $4.3 billion to $2.7 billion.
However, since late March, the DeFi asset management sector began to see renewed momentum, driving demand to protocols like YFI where users can earn yield on their assets.
Naturally, the resurgence of asset management and yield-earning strategies in DeFi led to a spike in venture capital interest.
Enso, for example, recently raised $5 million from a round led by leading venture capital firms like Polychain Capital Multicoin Capital, whose assets under management (AUM) exceed a billion dollars.
Enso allows users to access alpha yield farms, batch yield farms, batch AMM purchase, flash swaps, collateralization, and restructuring, which allows users to maximize how they earn yield across various protocols.
Spencer Applebaum, an associate at Multicoin Capital, which was praised by top fund managers like Three Arrows Capital CEO Su Zhu for being one of the top performing funds in recent months, particularly emphasized how Enso allows users to easily tap into various DeFi yield-earning strategies.
Applebaum said:
“We’re extremely excited to back Connor, Gorazd, and the rest of the Enso team as they work to open up DeFi asset management by removing whitelists and curation, and enabling composability with all DeFi networks. Enso is fully customizable and enables anyone to become a fund manager with the click of a button.” Spencer Applebaum, associate at Multicoin capital.
The rising interest towards yield-generating protocols, like YFI, and yield strategy-sharing platforms, such as Enso, indicate that there is a large demand for yield in the current market landscape.
Has DeFi summer arrived?
Whether the growing demand for yield-earning platforms and protocols would mark the beginning of the "DeFi summer" remains to be seen.
Atop the strong technical momentum major DeFi tokens have seen, the general sentiment around DeFi has been overwhelmingly positive as of late.
CITI explaining @MakerDAO and the benefits of DeFi to fund managers
— Mira Christanto (@asiahodl) April 16, 2021
Maybe this is why the boomer DeFi tokens went up +20% yesterday pic.twitter.com/t7AHnHXo4v
Citibank released a paper on April 16 entitled "Future of Money" and in it, described the benefit of DeFi to other fund managers.
The recognition of the momentum and the necessity of DeFi by traditional financial institutions could be the catalyst to enable the second wave of capital inflow into the DeFi market in the next few months.