yearn.finance (YFI): Price Updates, Recent Developments, Future Events, Community
- DeFi aggregator service, yearn.finance, is one of the current best performing cryptos in the market, gaining 50% in value over the past weeks.
- The rally comes in the wake of a proposal to change the tokenomics of the project.
- While voting on the proposal is still on-going, Yearn has outlined a four-phase rollout plan to facilitate the change of the project’s tokenomics.
- The new tokenomics model will change the governance format of yearn.finance and cement the YFI as the fundamental foundation for governance.
Initially launched as iEarn, yearn.finance is an aggregator service for decentralized finance investors. The DeFi protocol uses automation to allow investors to maximize their profits from yield farming.
The yearn.finance protocol has gained popularity among DeFi investors who are not technologically inclined. While yearn.finance is now one of the most popular DeFi protocols available, how has it performed recently?
Price Updates
Yearn.finance (YFI) is one of the best-performing cryptocurrencies in the market over the current period. On December 17th, YFI traded at $24,636, before rallying to a new 60-day high of $39,528 on December 20th.
The 14 day price chart for Yearn.Finance (YFI). Source: Tradingview
Despite correcting to $31,405, YFI retains a net gain of 28% over the last 7 days. Over the last 14 days, YFI has gained in value by 50%. It is now ranked as the 88th largest crypto with a market capitalization of $1.15 billion as of this writing.
Recent Developments
The development team behind yearn.finance has outlined a tokenomics change which will be deployed in four phases. Voting for the proposal is still ongoing, and the proposed four-phase evolution of yearn.finance’s tokenomics will not be carried out until the proposal passes.
The vote on the tokenomics proposal will remain open until December 28th, 2021. So far, 862.63 YFI has been locked in favor of passing the proposal (99.69%), with only 2.69 YFI, or 0.31% of voters, being against implementing the new tokenomics model.
As part of the proposed tokenomics changes, Yearn has begun to use protocol fees accrued to the treasury to purchase YFI tokens from the market. Yearn recently announced the buyback of $7.52 million worth of YFI at an average price of $26,651.
In addition, yearn.finance announced that the treasury has more than $45 million saved up and that, with increased earnings, they would be embarking on a more aggressive buyback plan for YFI tokens.
Future Events
As part of stage one, these tokens will be used to reward YFI stakers under an xYFI model. Simply put, users will stake assets in the xYFI vault, and earn YFI from the treasury in return.
Yearn.finance announced that stage 2 will introduce a Curve-Esque vote escrow model. This will incentivize YFI token holders with rewards for locking their tokens.
Stage 3 will introduce the Vault Gauges model to allocate rewards on a vote-based system. In addition, veYFI token holders may begin to earn external voting incentives. Finally, stage 4 will allow veYFI holders to earn even more rewards for “useful work” and contributions.
The tokenomics change will also affect the governance of the yearn.finance protocols. According to the proposal, only YFI tokens staked in phase 1 or locked in phase 2 would be eligible for use in voting.
On the Flipside
- Yearn.finance is staging a comeback after the network was attacked in February.
- Since hitting $90k in February, YFI has lost two-thirds of its value.
Community
The yearn.finance project is largely built around its community members. For example, the proposed update to the YFI tokenomics started as a call to the community for tokenomics suggestions on the yearn.finance governance forum.
Community members not only feel like they are a part of the project, but also believe in the project’s potential. Reacting to the buyback and subsequent rally of YFI, @Carithow09 wrote;
Yearn Finance (YFI), which has been almost forgotten by investors in the bull market this year, revealed the market repurchase in November and expects that there will be larger repurchases in the future. YFI rose by about 60% within seven days. Good project.
— Angela (@Carithow09) December 20, 2021
Martin Karel wrote;
Yearn Finance purchased 0.77% of the total supply of its native token, YFI, making it surge by over 46% in four days!
— Martin Karel (@mkarel69) December 17, 2021
@Dotcom_CSO wrote;
I think you guys got distracted with other tokens/news.
— Dotcom (,) (@Dotcom_CSO) December 24, 2021
Thanks for the cheap $YFI
Tokenomics Proposal live and looks to pass. Don't forget to vote:https://t.co/t6a7aFWqNx
1 $YFI = 2 $BTC
Why You Should Care
By reclaiming a good percentage of its tokens, yearn.finance is looking to implement a new governance model. It could also serve to increase the scarcity of YFI, resulting in an additional potential price rise.
Read more: https://dailycoin.com/yearn-finance-yfi-price-updates-recent-developments-future-events-community/
Text source: DailyCoin.com
