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,
Trying to decide if we should do whitepaper-esque writeups to explain before launch, or just launch and surprise everyone?
— Andre Cronje (@AndreCronjeTech) September 23, 2020
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.”