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Yearn.Finance

Here are the 3 DeFi protocols generating over $100M in annualized revenue

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September has been a tough month for the crypto industry. The DeFi protocols, on the other hand, are seeing increased activity. Market participants remained cautioned as a result of the regulatory clampdown from China and elsewhere.

Hence, many users have now that some buyers have changed their focus away from Bitcoin [BTC] and have instead resorted to decentralized finance [DeFi] tokens. As a matter of fact, DeFi protocols have seen more activity as Chinese FUD sent shockwaves across the industry. According to the latest data compiled by Messari, there are now three DeFi protocols generating over $100 million in annualized revenue – DYDX, PancakeSwap, and Yearn Finance.

DeFi’s incredible traction

In the wake of China’s crypto crackdown, many centralized exchanges scrambled to conform to new regulations. The derivatives DEX DYDX’s trading volume, on the other hand, even eclipsed Nasdaq-listed centralized crypto exchange Coinbase. Messari revealed that DYDX generated revenue of a little under $500 million annualized in the past month. To put things into perspective, DYDX has amassed well over 80% in two days as many speculated that Chinese crypto users are converging on the decentralized margin trading protocol.

Next up was PancakeSwap with a monthly revenue that stood at $219 million. PancakeSwap is a leading DEX at Binance Smart Chain. However, the latter has taken a substantial hit of late. But according to Messari’s analyst Ryan Watkins, PancakeSwap continues to be a “cash machine” for BSC. He stated,

“Despite BSC activity having fallen off a cliff since Q1 PancakeSwap remains a cash machine. Most profitable spot exchange in DeFi. Although I will note that if UNI flipped on its fee switch it would be producing far more income than PancakeSwap.”

Additionally, Yearn Finance happens to be the only protocol earning more than $100 million a year without paying out token incentives.

Overall, decentralized exchanges [DEXs] have held their position as the most profitable protocols in the decentralized finance sector by a huge margin. This is true for centralized counterparts as well, since CEXs remain the most profitable centralized crypto businesses. According to Watkins, the clampdown of centralized venues from certain jurisdictions will further catalyze the growth of DEXs.

Yearn Finance TVL across all products hits new record of $5 billion

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Despite millions being shaved off, the DeFi realm has been slowly rallying up. Yearn Finance, for one, was found to be getting back on track rather quickly. In the latest development, the total value locked across all Yearn products has exceeded $5 billion. In the last month alone, the DeFi protocol raked in $1 billion.

This was reported in the platform’s latest newsletter, according to which the TVL figure on Yearn took Yearn 226 days after the first $1 billion to get to $2 billion. Of late, the market reels from back-to-back corrections that have dragged decentralized finance [DeFi] closely-watched total value locked [TVL] figure down from all-time highs. However, this protocol has dismissed the macro weight and climbing up the TVL leaderboard.

Thanks to the latest parabolic growth, Yearn Finance’s products have remained mostly unfazed by the extended market’s sideways price movement. To be more specific, its Iron Bank and v2 vaults are have contributed significantly to the latest growth structure.

In addition to that, Yearn Finance has acquired more than $10 million in revenue for May. With this, the DeFi protocol was up by over 34% MoM. This translates to $123.12 million annualized revenue. The platform’s assets under management [AUM] have appreciated from $3.328 billion to currently over $5 billion.

Yearn Finance’s newsletter revealed that the protocol’s earnings are estimated to be $400,000 per day. However, these numbers are preliminary pending final financial reporting at presently, its P/S was found to be at nearly 11.8x.

Yearn Finance [YFI]

The price of the native token of the DeFi project, YFI, however, has failed to resuscitate the positive sentiment as it remained largely dependant on external factors such as the correlation with Bitcoin [BTC] and social media activity. Post the May 19 market-wide correction, YFI’s prices experienced more than a 45% drop and brought the token to levels last seen in the first week of April. At the time of writing, YFI was being traded at $37,509.

Yearn Finance [YFI] Undergoes V-shaped Recovery After Hitting Local Bottom

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After suffering heavy losses during the market-wide collapse, Yearn Finance [YFI] has regained the momentum that helped it breach a crucial resistance level. However, the defi token was still down by more than 33% over the last 24-hours.

The whales had aggressively bought during the dip, which pushed the prices of the coins higher. Despite the ongoing relief rally, speculations regarding the market potentially heading for a bottoming phase emerged.

Yearn Finance [YFI] surged by 13.23% over the last day to climb to a price of $46,492. At the time of writing, the digital asset registered a market cap of $1.69 billion and a 24-hour trading volume of $1.37 billion.

Yearn Finance [YFI] Daily Price Chart:

Yearn Finance [YFI] dropped sharply before undergoing a v-shaped recovery. While this abrupt price movement did help the defi token to climb above the 100 DMA [Blue], the 50 DMA [Pink], however, continued to hover above the YFI price candles, thereby resisting more upswing.

The increasing volume however backed the price of the token in the latest surge, which, if maintained, can push it higher potentially invalidating the bearish calls.

Recovery

The Yearn Finance [YFI] broke below a crucial support zone on the 23rd of May. This resulted in severe bearish pangs in the market. However, the long tail on the candlestick the very next day suggested the bulls purchased the dip which led to the recovery.

The Chaikin Money Flow [CMF] appeared to be climbing above the zero line, meaning the outflow of capital from the coin market has been on a decline.

The MACD also appeared to be resuming the buying demand as it heads for a bullish crossover. The RSI made a jump towards the 50-median line depicting a sentiment of decreasing selling pressure in the market after the formation of a local bottom.

If the price of Yearn Finance [YFI] turns down from the 100 DMA moving average of $43,665, the bears will make one more attempt to resume the downtrend. Furthermore, a break below $32,972 could open the doors for a drop to the next support at $27,251.

However, if the bulls can push the price of the defi token above $53,733, it could target other resistance levels of $72,740 and $82,889 respectively.

Yearn.finance TVL smashes past $4B TVL while YFI token hits above $80k

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Yearn.finance and its native token YFI has broken many records this quarter, and there is no stopping it.

Thanks to Ethereum’s meteoric rise, decentralized finance [deFi] protocols, and their native tokens have been on a surge lately. The digital asset management platform, Yearn.finance has recorded yet another milestone as collateral locked in it surged to a new ATH.

According to the deFi platform’s latest edition of the weekly newsletter, the total value locked [TVL] in it has surpassed $4 billion. Since the beginning of the year, the TVL figures have maintained a consistent rise and have not seen any significant downturn. As of the 12th of May, Yearn’s TVL was found to be at $4.48 billion.

The report mentioned that Yearn.finance’s TVL doubled from $2 billion to $4 billion in a period of just 32 days. This in contrast to the deFi protocol’s jump from $1 billion to $2 billion in total value locked which took a whopping 226 days.

Yearn’s blog also stated,

“Yearn is continuing to see parabolic and continuous growth among its products with no indication of growth slowing down. The Iron Bank product has seen notable increases since the start of April, in conjunction with sustained growth of our v2 yVault product line.”

Yearn.Finance’s Native YFI Records ATH

Its governance token, YFI, however, had a rocky start in the starting of 2021. Despite a minor breakout, Yearn.finance’s native asset has traded below $40k for the most part of the first quarter. It was amidst the crypto rout in the last week of April, that YFI gained some serious upward momentum that has been in continuation to this day.

In a matter of just two weeks, YFI has doubled in terms of its price and broke above $82k following a short-term period of consolidation. Despite a lackluster price movement for almost two quarters, YFI became the best performer of the week, among its peer deFi tokens, as it accrued gains of nearly 60% over the last 7-days.

Yearn Finance Announces Third Major Integration

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It has been a busy week for the decentralized Finance [DeFi] protocol, Yearn Finance as it continued its merging spree. In less than a week, after two high profile integration, comes yet another development of a similar agreement, this time with Cover Protocol.

In an official blog post, Yearn Founder Andre Cronje announced that the DeFi protocol has joined forces with market coverage provider, Cover Protocol. It further revealed that the developers of the two platforms have been working together for a long time, since Cover’s inception to be precise, hence the collaboration was “natural” for both the parties.

The two teams would be working together as one in a bid to optimize, enhance, and amplify the work that is already in progress. Yearn will be focussing on its vaults, while Cover’s role entails as the backstop coverage provider for the Yearn product suite, as well as for DeFi as a whole.

While outlining a series of promising possible synergies, Cronje went on to include an enhanced utility for the Cover’s CLAIM token, which will act as collateral and become a borrowable asset for Yearn, as well as enhanced security for Yearn vaults via Cover’s market coverage. In addition, Cover products such as perpetual coverage will also get an expanded addressable market.

TWJ had previously reported how Yearn Finance has plunged in with the opportunity after Pickle Finance’s hack and announced the collaboration with the platform to create new vaults and strategies. Two days later, Yearn tapped Cream Finance. It is important to note that both the platforms were onboard for the purpose of enhancing the core competencies of Yearn while also pushing the protocol into new markets simultaneously.

Yearn Finance [YFI] Returns From A Bearish Hiatus

Yearn Finance’s native token [YFI] has positively responded to the developments as it took a surprising turn after laying low for more than a month. It recently neared $30K, a level that was last seen in September.

At the time of writing, YFI settled at a price of $23,372 after a minor surge of 1.72% over the last 24-hours. Another crucial factor of the rise of the token was the Bitcoin’s rally. While at press time, the selling pressure seems to have overpowered both Bitcoin and Ethereum, on the other hand, YFI’s technicals remained strong.

Yearn Finance Is On a Merging Spree; Here’s What This Analyst Have To Say

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The way Yearn Finance and Pickle Finance look today versus in 6 months will likely be worlds apart. These words were noted by Delphi Digital Analyst, Ashwath Balakrishnan that the DeFi protocols’ “ferment co-operation dill” is just beginning, and the final form of this partnership is yet to be set in stone.

The analyst referred to the first-ever merger and acquisition [of sorts] agreement in the decentralized finance [DeFi] world. The developers of both protocols had reportedly devised a structure to enable the projects to work together in symbiosis in order to reduce duplicate work, increase specialization, and to leverage shared expertise.

Yearn Finance-Pickle Finance Partnership

As Yearn Finance came to Pickle’s aid, lots of opinions and misconceptions started floating around the recent agreement between the two DeFi protocols. Noting the same, Balakrishnan tried to clear the air.

The Pickle’s jars, which were previously the yield farming vaults, will rebrand to yVaults, and Pickle would be entitled to half of the performance fee from vaults they created the strategy for. Moreover, all strategy creators will be rewarded with half of the performance fees in yEarn v2.

In addition, PICKLE investors, who vote lock their tokens for the new vote locking token called, DILL will have a claim on strategy fees from what were previous pJars, a 20% performance fee on yVault tokens in the gauge, as well as 0.5% withdrawal fee.

Hence, the analyst claimed that this result is better value capture for the PICKLE token since rather than charging fees on a few pJar strategies, the investors of the token who vote lock into DILL will be able to pull value from Yearn Finance’s native vaults as well.

The first step of this “co-operation” would be to merge Pickle Jars and Yearn’s v2 Vaults and merge both protocol’s total value locked, or TVLT. Hence, the benefits are obvious for Yearn Finance. To this, Balakrishnan stated,

“With Pickle rewards, TVL instantaneously rises resulting in more fees and thus more value captured by $YFI. With 0 $YFI inflation, yEarn can now boost vault returns through yield farming rewards in $PICKLE.”

He went on to assert that for Yearn Finance’s native token, YFI, this is a short and long-term benefit with certain improvements to value capture but with respect to PICKLE, the short term is much, much better than it was as a standalone product. Considering the long term aspect, it is a bit more uncertain in terms of value capture and the token’s long term role in Yearn Finance.

Yearn & Cream V2 Merger

In yet another development, Yearn Founder Andre Cronje revealed that the developers of both Yearn and Cream have teamed up to launch Cream v2 which will aim at core lending and leverage products. Cream v2 essentially allows earning yield with leverage and is a launchpad for future collaborative lending products of the two DeFi platforms.

Has Yearn Finance [YFI] topped out?

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Over the last week, a recent relief rally managed to catapult 35.82% of the gains for the decentralized finance [DeFi] project, the YFI token of Yearn Finance. But the much-needed bullish sentiment might be cut short. According to the latest developments, YFI’s fourth-largest transaction since late August.

 

This was revealed by the crypto analytic platform, Santiment which noted that 2,546.23 YFI tokens were transferred as a centralized exchange deposit, worth a total of $13.8 million from a whale address to new exchange address. As depicted in Santiment’s chart attached above, the YFI holdings were reduced by 50% following this transfer.

Coinciding With Yearn Finance [YFI] Token’s Price Action

It is important to note that the transfer came right after Yearn Finance [YFI] token attempted to regain some of the lost value along with a considerable uptick by several other top DeFi tokens on the same day. YFI turned down from a crucial area of resistance at $15,083 as sell-off intensified following the surge as buyers have been unable to flip this significant level.

At the time of writing, YFI was being traded at $14,833.

Many in the community have urged that Eminence’s debacle and Yearn Finance’s Creator Andre Cronje involvement in it has been damaging for the YFI. One economist also opined that Cronje and his team working in the shadows has

“YFI’s performance has been disastrous. It has “capitulated” so many times in the last few weeks. It is YFI specific, going beyond alts. It is the worst performing coin of the top 100 in the last week, by a 10% margin. It has done 2x worse than the 10th worst performing asset.”

He further added,

“Cronje is a major variable. He wants Yearn to be decentralized and walk on its own, driven by the team. Nobody knows the team, they are in the shadows. What Cronje did with $YFI is similar to leaving a toddler to walk alone in a city. Dropping yields is the second variable.”

Much-needed Push

On a brighter note, a bullish momentum may start snowballing if YFI manages to climb above the $15K-level. On the other hand, a failure to steer clear of this barrier could potentially materialize an extended downside correction with the initial support levels of $14,000-$13,600, and $12,700 respectively.

Andre Cronje’s New DeFi Project Token KP3R Notes Surge Over 1000% In 24-Hours

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Andre Cronje, who happens to be the lead developer of the DeFi project Yearn Finance launched its third decentralized project dubbed ‘Keep3r network’ whose native token has surged by more than 1135% in less than a day. The latest price surge comes right after Cronje launched the Keep3r Network on the 28th of October. According to the data compiled by CoinGecko, the protocol’s KP3R token was being traded at  $342.

According to the latest update by the developer, the government audit was finalized, and that the project was ready to use. Having said that, Cronje went on to caution the community to “use with care” since it was still an experimental software.

The token began trading on the world’s largest decentralized exchange [DEX] Uniswap, a week back. It was then, that KP3R surged from a little below $10 to above $200 in a very short period of time. Notably, Cronje had published his third protocol to GitHub in the third week of October rather quietly. There was no formal announcement and the launch was kept low profile which could be attributed to the controversies surrounding the Eminence Finance debacle earlier this month.

Blast from the past: A hacker was reportedly able to steal a massive $15 million user funds from Eminence’s platform while Cronje was asleep as traders rushed to invest in the protocol. Subsequently, he woke up to death threats from users who had invested in it despite his previous warnings and the fact that he had clearly mentioned that the platform was incomplete. This not only drove off Cronje from Twitter but also led to a crash in YFI’s price as well as TVL figures for Yearn.Finance from nearly $1 billion to below $400 million.

History Repeats Itself

While this episode was a reminder and a wake-up call to many investors to not rush into an unaudited platform, there were few who repeated this with Cronje’s newest experiment as well.  A few traders and their bots quickly injected money into the Keep3r protocol and began trading the token on Uniswap. This led to a sharp price rise from just $1 to $2,000 shortly after which the token was dumped as it fell below $100.

Keep3r in Brief:

According to the official GitHub page, Keep3r  was defined as a decentralized keeper network for projects that need external DevOps and for external teams to find keeper jobs. Here, a ‘Keeper’ is the term used to refer to an external person and/or team that executes a job while a ‘Job’ is the term used to refer to a smart contract that wishes an external entity to perform an action.

Yearn.Finance’s YFI Posts a Big Turn Around After Losing Steam

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This year, Yearn.finance has launched its own governance token, YFI, which has grown at an astonishing rate to its $43K peak. Its success has spawned multiple forks, such as DFI.money and YFValue.The token has dominated headlines in the past couple of months. However, since these recent ATHs, both the project’s TVL [total value locked] and the native token’s value has plummeted. The TVL currently stood at $594 million, a little less than half of the figures slashed since its peak.

This was primarily due to the significant capitulation which drove the coin to new lows as most DeFi coins suffered significant corrections in recent weeks. The mishap with Yearn.Finance, Founder, Andre Cronje’s secret Eminence [EMN] project further added to the woes.

However, this trend was showing reversal patterns. Over the past three days, YFI was up by more than 42%. The latest uptrend resumed after Ethereum’s value surged on Friday which propelled not only several altcoins to post gains but also catapulted DeFi tokens to climb closer to their respective targets.

YFI rebounded from its local lows of $12,000 to its press time of $17,108 as it headed to breach yet another crucial resistance. Additionally, YFI was also deep in the oversold territory as depicted by the RSI indicator in the daily chart. On the brighter note, RSI created an oversold reading followed by a higher low that matched correspondingly lower lows in the price. This was indicative of rising bullish momentum, and a break above oversold territory could be used to trigger a new long position in the coming days.

According to the latest Skew charts, the DeFi darling had a “pretty big turn around” session. In terms of aggregated daily volume on Huobi, YFI had started to resume an uptrend after weeks of dull and stagnant price action.

Meanwhile, Yearn was under active development which is slated to incorporate new vaults and strategies. Significant progress on this front is likely to bolster the price action of its governance token.

DeFi Hackers Drains $15 million From Unaudited Project Related to Yearn.Finance

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The DeFi community woke up to the news of a hacker draining $15 million from untested and unaudited codes of Andre Cronje’s latest project. Cronje, who happens to be the Founder of Yearn.Finance, was working on a new economy for a gaming multiverse, called Eminence, and wasn’t planning on releasing the project for at least another three weeks.

Following which he revealed deploying staging contracts on ETH to continue developing on it. The unaudited version was launched on the decentralized platform, Uniswap. Cronje tweeted the project’s logo last night.

However, he woke up in the middle of the night to find that almost $15 million was deposited into the contracts as speculators driven by FOMO rushed in to purchase the platform’s native EMN tokens.

A hacker discovered a rogue function that allowing the minting of unlimited EMN tokens, burn an equal amount of EMN tokens against another crypto-asset, and sell that to those rushing in to buy the token. The hacker went ahead and exploited the flaw in the contracts leading to a loss of $15 million. In a rather bizarre event, Cronje revealed that the hacker returned over $8 million of the stolen funds to his own deployer contracts.

The returned funds will be directed to all those who rushed into buying the EMN token. Despite this, he continued to receive threats. Revealing the same, Cronje tweeted,

“As I am receiving a fair amount of threats, I have asked yearn treasury to assist with refunding the 8m the hacker sent. The multisig is safer and as such I feel more comfortable with them having the funds. Funds will be returned to holders pre-hack snapshot.”

Following this episode, the developer urged the community to wait for official announcements and further added,

“Given some of the responses, let me be clear, do not use random contracts I deploy unless I reference it in a medium article. The contracts I deployed yesterday were purely for myself to engage with, both GIL and EMN are staging and will not be used.”