HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

It Took YFI’s Ethereum Vault One Day to Garner $75m in Investment

Altcoins 2020/09/03 05:00 by Nick Chong

While Ethereum and the rest of the crypto market saw a strong pullback on Wednesday, the DeFi space has continued its ascent to the upside.

What is fueling the recent growth in DeFi is a number of product launches and new projects. One such product is Yearn.finance’s (YFI) latest “Vault,” the yETH Vault. This product gives investors the opportunity to earn a high yield on their ETH. ETH is currently a rather unproductive asset, offering little yield on money-market platforms like Aave.

The product has already seen success, despite launching just 24 hours ago as of this article’s writing. According to on-chain data, the Yearn.finance product has already garnered dozens of millions worth of investment.

Related Reading: These 3 Trends Suggest BTC Is Poised to Bounce After $1,000 Drop

Ethereum Vault on Yearn.Finance Garners Over $50 Million in First Day

The Ethereum Vault on Yearn.Finance has seen extreme success just 24 hours after its launch. According to on-chain data trackers, there is now 168,000 ETH worth of capital locked up in the product, which amounts to around $75 million.

The capital is yielding around 90% per annum, according to Yearn.finance. The yield is purportedly being generated through a multi-step process this is as follows:

  • Deposit ETH into a collective pool, controlled by a Yearn.finance contract.
  • Deposit ETH into a MakerDAO loan, also called a collateralized debt position. DAI is minted through this loan position.
  • DAI is then deposited into the Curve.fi protocol to yield CRV, a governance token of the protocol that has garnered much traction over recent weeks.
  • The CRV is then regularly liquidated for DAI, which is then converted back into Ethereum through decentralized exchanges.
  • ETH is then distributed to holders of the Ethereum Vault token, yETH.

The collateralization ratio of the CDP is constantly rebased by those that call the “harvest” function for the Ethereum Vault contract, thus ensuring that the position is not liquidated.

Related Reading: Here’s Why This Crypto CEO Thinks BTC Soon Hits $15,000

Driving ETH and YFI Higher

Analysts say that this is poised to drive Ethereum and Yearn.finance’s YFI coin together in tandem. This is because YFI holders can obtain fees from users of the Ethereum Vault and ETH should see renewed demand as investors look to invest in this product.

“The @iearnfinance yETH vault is an ETH stacking beast Gorilla How it works: Put ETH into yWETH vault > ETH is put in @MakerDAOat 200% collat > draw DAI > put DAI into @CurveFinance to farm CRV > recycle it all into ETH. ETH sell side liquidity crisis incoming. Few understand.”

How far Ethereum rallies, though, remains to be seen.

Featured Image from Shutterstock
Price tags: ETHUSD, ETHBTC, YFIUSD, YFIETH
Charts from TradingView.com
It Took YFI's Ethereum Vault One Day to Garner $50m in Investment

0 Like(s)



You should also read...

Altcoins 05/06/20 01:00 by Priyeshu Garg
Ethereum-Focused Hackathon Event Offers a Sneak Peek Into a DeFi Future
HackMoney Hackathon, a 30-day virtual Aave hackathon organized by Ethereum developer group ETHGlobal, has announced its three winning projects—Learn&Earn, a gamified online learning platform, Yi...
Read More
Altcoins 02/09/20 01:45 by Nick Chong
A Fork of Ethereum’s Yearn.Finance (YFI) Has Surged Over 100% In 24 Hours
The Ethereum-based Yearn.finance (YFI) was forked multiple times in July and August as developers looked to replicate the original’s success. For context. YFI surged around 100,000% from its fir...
Read More
Crypto 09/09/20 22:00 by Tony Spilotro
YFI Climbs 50% From $18K Low While The Rest Of Crypto Stagnates, But Why?
As incredible as Chainlink’s rise has been across the crypto market, it has been eclipsed by the emergence of one extremely rare coin that has since become even more expensive than Bitcoin itsel...
Read More
Bitcoin 29/09/20 19:00 by Tony Spilotro
Yearn.Finance (YFI) Could Fall To $15K “If” Bitcoin Brings Down Crypto
Yearn.Finance (YFI) is one of the most talked-about cryptocurrencies of 2020, both due to its scarce 30,000 token supply and its miraculous price increase to more than 1 BTC in value. However, the DeF...
Read More
Other 19/11/20 00:00 by Cole Petersen
Analyst Targets Yearn.finance (YFI) Move to $27,000 as Bulls Take Charge
It has been a wild past few days and weeks for the Yearn.finance governance token. YFI bulls attempted to spark a strong uptrend earlier this week when they surmounted the $18,000 level, as this has l...
Read More