The yETH vault allows ETH holders to gain yield by simply placing their tokens within the vault. According to stats.finance, Yearn.finance has $1.124 billion in value locked. Out of the $1.124 billion, $438 million are locked in the vaults.
As the user activity on Yearn.finance sharply increased, the projected needed more developers to sustain the platform.
On September 10, the Yearn.finance team announced 12 new team members across development, content, and operations.
Factor #3: Recent controversies around SushiSwap boost Yearn.finance
The sudden sell-off caused the price of SUSHI to drop by nearly 90% within seven days.
Since then, the community has seen newfound respect for Yearn.finance’s Andre Cronje and Uniswap’s Hayden Adams. They both released decentralized projects in a transparent manner, with no pre-mined financial incentives and clear governance models.
Cronje, the founder of YFI praised for transparently launching the token, said:
“Seeing a lot of projects promoting ‘multisig governance’ like it is a feature. It is a stopgap for proper governance. But proper governance takes time to formulate. Multisig is not a feature, its a crutch. If teams promote this as a feature, please think twice.”
The confluence of a favorable technical structure and the growing demand for Yearn.finance’s products fueled its recent upsurge.
Atop the strong fundamental factors, the confidence around the project has also started to improve due to recent controversies around pre-mined DeFi projects.
In July, Mechanism Capital’s Daryl Lau described the release of YFI as “a tale of fair launch.”
“Despite having the power to give himself a pre-mine or founder reward, he elected instead to keep zero tokens for himself,” he wrote.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com