Yearn Finance Joins the Billion Dollar DeFi Group with Four Others

Nivesh Rustgi
August 21, 2020
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Yearn.finance joins the billion-dollar club w.r.t. Total Value Locked (TVL). It becomes the fifth project along with Aave, Maker, Curve, and Compound with a TVL greater than $1 billion.

Three of the top DeFi projects are based on a loaning platform, whereas Curve is a DEX pool specifically designed for stablecoins. Yearn.finance works as an intermediate between yield farmers and projects in selecting the top-yielding platforms.

The beginning of Curve Finance liquidity mining pool last week was instrumental for YFI’s yEarn. The Y CRV (Curve) Pool is for $YFI is enormous, accounting for more than 65% of the Curve’s liquidity. 

VAULTS YEARN (governance token stakers) a 5% gas subsidization fee and 0.5% withdrawal fees before the yield gets sent back to YEARN governance. The APR (Annual Percentage Rate) of yCRV is more than 300% which is driving the expansion of the TVL. Moreover, the price of YFI is directly linked to the TVL. 

The governance token for yearn.finance, YFI, made the headlines as it reached parity with Bitcoin in term of price per unit. Currently, 1 YFI is priced at $13700, while Bitcoin [BTC] is trading at $11,700. It remains to be in an uptrend as the yields from DeFi continue to expand.

yearn.finance ftx
YFI/USDT 4-Hour Chart on FTX (TradingView)

Reportedly, the price earning ratio for YFI governance is more than 4 and is rapidly expanding. Yesterday, $50k per day in true earnings, not inflation, was returned to $YFI governance token holders. 

The only major concern around the growth of these projects is the rising GAS fees on Ethereum. The GAS fees on ETH is greater than 110 Gwei which raises the cost of these transactions, however, it has been at current levels for a while and the high yields on DeFi seems to be compensating for the high fees.

Do you think that the attractiveness for DeFi is increasing with enormous yields or soon to suffer realistic blows? Please share your views with us. 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.