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dYdX Deploys $13.5 Million Insurance Fund After $38 Million Liquidation Event

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In response to a targeted assault that negatively impacted user positions valued at $9 million, dYdX, a leading decentralized exchange, swiftly mobilized its v3 insurance fund. Founder Antonio Juliano labeled this incident a purposeful strike against the platform, signaling a prompt reaction to mitigate its effects.

On November 17, the cryptocurrency market witnessed significant fluctuations, particularly concerning the Yearn.Finance (YFI) token. YFI’s value plummeted by 43% following a remarkable surge of over 170% in the preceding weeks, which has sparked a discussion among the crypto community about possible market manipulation or an exit scam. These fluctuations have raised concerns about the stability and reliability of the cryptocurrency market, which is subject to frequent and unpredictable volatility.

dYdX’s v3 insurance fund was quickly utilized to address discrepancies arising from liquidation processes, primarily within the YFI market. Juliano reassured users, stating that the fund’s $13.5 million remains intact, emphasizing the safety of users’ assets. The attack targeted long positions in YFI tokens on dYdX, resulting in nearly $38 million in liquidations.

Source: DYDX Explorer

dYdX Initiates Investigation And Risk Review Post-Attack

In response, Juliano announced a comprehensive investigation in collaboration with various entities to uncover details of the alleged attack. The objective is to maintain transparency by informing the community about the findings. Additionally, dYdX is conducting a thorough review of its risk parameters to bolster the platform against similar incidents in the future, potentially prompting adjustments in both the v3 framework and the dYdX Chain software.

The sudden downturn in YFI’s market capitalization, wiping out over $300 million, has spurred discussions within the community. Notably, there are speculations about potential insider involvement, given claims about significant YFI token supplies held in wallets reportedly linked to developers. However, data from Etherscan indicates that some of these wallets might belong to cryptocurrency exchanges, hinting at a more intricate ownership structure.

This incident at dYdX underscores the volatility of the cryptocurrency markets, highlighting the crucial need for robust security measures and adept risk management strategies in decentralized platforms. As the crypto sector continues to evolve, the agility of exchanges and protocols in responding to unforeseen market events becomes increasingly pivotal.

Moreover, this event raises pertinent questions about market concentration and the influence wielded by major holders in shaping market dynamics. The ongoing investigation is expected to provide further insights into these issues, potentially influencing future regulatory frameworks and operational approaches within the digital asset industry.

Yearn Finance (VFI) Plummets 43% in Hours, Wiping Out Recent Gains Amid Market Uncertainty

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In a staggering turn of events, Yearn Finance’s (YFI) price witnessed a major setback after surging 167% recently, as it plunged 43% within five hours. This steep decline wiped out almost five days of rapid gains, bringing the token’s value down from a high of $15,591 to $8,421, resulting in a loss of over $250 million in market capitalization.

The sudden and unexpected Yearn finance (YFI) shift has caused investors to lose confidence, and many are now bewildered by the situation. This turn of events has raised questions about the factors that contributed to the asset’s decline and what measures can be taken to mitigate similar occurrences in the future.

Speculation abounds regarding potential causes for the Yearn Finance crash, with some attributing it to a suspected exit scam by insiders. Concerns have been raised due to the concentration of nearly half of the Yearn Fiance supply in just ten wallets, including those belonging to prominent crypto exchanges.

Yearn Finance (YFI) Liquidations Hit $5M In 24 Hours

Data from Coinglass indicates over $5 million in liquidations within 24 hours, with YFI contract positions reaching a peak of $162 million before sharply declining. As traders make short positions on Yearn finance, the token’s open interest (OI) has surged significantly, reflecting a bearish sentiment in the market.

Source: Coinglass

The recent downturn has had an impact on the broader cryptocurrency market. Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) – some of the major altcoins – have experienced a drop of approximately 3% in the last 24 hours. In addition, DeFi tokens have played a significant role in the market decline, pulling down the global market cap.

This plunge comes amid Bitcoin’s sideways movement, displaying no clear direction, while altcoins appear vulnerable to market fluctuations due to lower trading volumes during weekends. Analysts anticipate further pullbacks before a potential resurgence in altcoin investment, although the market has shed nearly $25 billion in the last two days.

The recent surge in cryptocurrency prices, primarily attributed to ETF approval anticipation, has hit a roadblock. Despite expectations for the ETF approval window from November 13 to 17, the SEC’s delay in making a decision signals a probable postponement until January 2024. Consequently, investors may capitalize on profits, potentially triggering a widespread market correction.

As uncertainty looms over the crypto market’s immediate future, investors are advised to tread cautiously amidst the ongoing volatility, especially with altcoins experiencing a considerable retreat after substantial gains.

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.

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.

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.

Yearn.Finance’s YFI Rushes Towards ATH After Founder Hints at Major Update

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Yearn.Finance has taken the world of DeFi by storm. Officially introduced in July 2020, the DeFi protocol has $813.25 million in total value locked. Over the past four-days, its native token, YFI underwent a significant of nearly 70% despite a price stagnation in the overall cryptocurrency market. At the time of writing, YFI was priced at $29,016.

The decentralized finance space had a rather slow week. As depicted by the above chart, YFI had hit an all-time high on the 12th of September. However, it was one of the worst-hit DeFi tokens, along with Uniswap’s UNI token, during the recent sell-off that hit Ethereum and the rest of the altcoin that ultimately drove YFI’s price to decline by nearly 50%.

But the latest uptrend could be directed towards its previous high could be directed to a major update that involves the incorporation of other popular DeFi protocols such as Synthetix, Aave, Chainlink, and running on layer 1 and 2 solutions of the Ethereum network. This was hinted by Yearn.Finance’s Developer and Founder Andre Cronje who tweeted,

https://twitter.com/AndreCronjeTech/status/1308812154527780865

Yearn.Finance happens to be the first-ever project on the Ethereum network whose governance is entirely in the hands of token holders. The latest development is likely to provide users with solutions that allow them to reduce transaction fees. This coupled with an active community as well as governance forums has fostered further gains for the native token YFI.

Cronje had earlier held an online poll in which he proposed a measure to the community seeking to cap the total supply of YFI tokens at its current 30,000. This essentially meant that if the minting function is removed, no member in the Yearn.Finance ecosystem or any of its multi-sig holders will be able to print more tokens in the future which in turn could further curb the rise of potential inflation due to increased token supply at the same time preventing a possible manipulation in the protocol’s governance system.

More recently, Lou Kerner, Partner at CryptoOracle had recently published a blog post in which he lauded the project and revealed,

“Yearn is so impressive because it takes the massive opportunity and remarkable complexity of DeFi, makes it simple to use, while deeply integrating with leading DeFi protocols [e.g. Uniswap & Curve], and leveraging community as a powerful moat.”

Binance Futures Launches YFI/USDT Perpetual Contract as DeFi Demand Surges

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DeFi (Decentralized finance) is currently one of the hottest corners of the crypto industry this year and, as a result of the boom, many project tokens have shown incredible price surges. One of the prominent tokens is Yearn. Finance ‘s native YFI, which has gained significant traction over the last few weeks.

DeFi, the big hype

In a bid to cash in on the mania, several centralized platforms have now jumped on the DeFi bandwagon.

In the latest development, one of the world’s largest centralized cryptocurrency exchange, Binance announced the launch of the YFI/USDT perpetual contract on its Futures platform wherein the users will be able to choose between 1-50x leverage.

The YFI/USDT perpetual contract is a USDT-margined futures contract that uses USDT as collateral. According to the official blog post, the contract will be made available to users from 31st August 7:00 AM [UTC].

This news follows Binance‘s announcement of offering ‘DeFi Index Perpetual Contracts’ to cater to the huge customer demand to get exposure to a broad base of DeFi products.

YFI’s meteoric rise

Meanwhile, in a little over a month, YFI has soared by a staggering 4008% since it was created $764.42 in July to the press time price at $31,682. Following the path of Bitcoin, the creators of the project have limited the supply of the governance token to 30,000 YFI coins. This could be an important contributing factor to the rapid surge in its price.

This new rally was also speculated to be triggered after, one of the largest DeFi protocol, Aave announced the listing the token. This was a significant development for the YFI ecosystem primarily because Aave has successfully outpaced the likes of Maker, Curve Protocol in the race for the first place in terms of TVL.

As previously reported, yet another catalyst for the token’s upward momentum was directed towards a  potential collaboration between the crypto derivative platform FTX and Yearn.Finance.

Besides, the protocol also recently announced the launch of ‘yinsure.finance’ which is essentially a prototype for a new tokenized insurance, the first of its kind in the DeFi ecosystem.

What is Yearn.Finance Token and Why is it Worth Over $30,000 Right Now?

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Step aside Bitcoin, there is a higher valued crypto-asset in town at the moment! 

Yearn.Finance, a governance token that was created to power the decentralized finance protocol yEarn is worth over $30,000 at press time. Clocking in at $32,300 at the moment, the asset’s valuation has risen by 139% over the past week, and close to 67% over the past day.

The sheer growth of DeFi has been there for everyone to see that the YFI token is taking its value to the next level. There is no doubt that YFI is a speculative asset, but its utilization has been central to the “yield farming” method, where various DeFi lending protocols distribute governance tokens as incentives for using them.

In simple terms, yEarn is a yield aggregating platform on Ethereum where users can decide and compare yields between different DeFi lending protocols and earn incentives by placing their crypto in “vaults”.

Now, since YFI is the governance token of this platform, users want to hold more of it so that they can cast their votes on policies and proposals that dictate the future of the yEarn network.

How is it Yearn.Finance surviving and growing so fast?

Now, one of the main reasons why YFI’s value has undergone a price explosion is due to its limited supply of only 30,000. Close to 29,680 are already in circulation, making it a very scarce asset in the ecosystem. Each vault allows users to deposit a particular token and the protocol yields farms with it.

However, it is important to note that Andre Cronje, founder of Yearn.Finance emphasized that YFI is to be provided to liquidity providers who supply other ytokens and be used for voting.

Cronje stressed multiple times that YFI token is valueless but after being listed on Binance and Uniswap, and presently on AAVE, the token has been bought by at a frightening rate on exchanges.

Partnerships with AAVE has certainly helped as after being listed on 28th August, the price has been up by 75%, and right now, the momentum does not look like to slow down anytime soon.

However, people and potential investors should vary from YFI tokens because the sole purpose of the token is to manage the platform and not hodl. Once Yield Farming runs its course, YFI tokens may undergo an unceremonious price dump and there will be no-one to recoup the lost value. Andre Cronje mentioned it from day one, that YFI is “valueless” and people should keep that in mind.