Yearn Finance Joins the Billion Dollar DeFi Group with Four Others
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.
$1,000,031,344 🥳🎉 https://t.co/vHV7nux4wz pic.twitter.com/a25BMZlBqQ
— yearn.finance (@iearnfinance) August 21, 2020
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.
$yCRV is DeFi top stablecoin 🌈
— Julien Bouteloup (@bneiluj) August 20, 2020
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.
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.
To get the daily price analysis, Follow us on TradingView
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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 Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Published at Fri, 21 Aug 2020 15:44:48 +0000
Share on Facebook
Share on Twitter
Share on Linkedin
Share on Telegram