Yearn Finance Mints 6,666 YFI Tokens ($225M) After Supply Proposal Vote Passes

Yearn Finance Mints 6,666 YFI Tokens ($225M) After Supply Proposal Vote Passes

  • Andre Cronje goes back on his “fair release” mantra.
  • The proposal aims to keep key contributors and attract new talents

Yearn Finance stakeholders have uniformly passed a proposal seeking to increase the amount of YFI tokens currently in the market. The proposal was initiated after Yearn Finance’s creator, Andre Cronje, made a medium post on why the community should make the change.

New Mints To Address “Competitive Disadvantage”

An earlier proposal for YFI tokens to be increased has seen it passed. Andre Cronje, the creator of the Yearn.Finance protocol published a poll asking for input on how best to move forward with the YFI tokens’ supply.

The poll began on January 28. It received input from over 2,000 participants. In the end, 1,671 voters (roughly 84%) supported the move to increase the supply of tokens, while 331 of them (16.5%) voted against it.

Currently, there is a hard cap of 30,000 YFI tokens in circulation. As the results of the poll have shown, the token’s market cap will be increased by 6,666 tokens. The proposal aims to reward key contributors with a third of the minted tokens (2,222 YFI), while the remaining two-thirds (4,444 YFI) will be reserved in the protocol’s treasury.

The expansion proposal aims to use the newly minted tokens to motivate new contributors, fund liquidity mining and staking rewards, acquire talent, and provide new cross-platform incentives. However, most users who voted against it claimed that it contravened the token’s social contract, a problem that could lead to an erosion of the token’s value in the open market.

Eventually, the proposal’s authors decided to increase the token’s supply by just 22 percent, adding that this slight increase will maintain YFI’s competitive advantage over the tokens of other decentralized finance (DeFi) protocols.

It is unclear how the protocol plans to distribute the newly minted token. However, it is expected that the distribution process will be handled by a Compensation Working Group. The group will present its recommendations to the multisig committee (YFI’s version for a board of directors) for a review. Once approved, the compensation plan will be executed. Yearn has stated that the process of minting new tokens will take three days.

The decision to reward key contributors shows a change of perspective in the community who are known for not giving preferential treatments for insiders. Andre Cronje began this practice and it has stuck. But the new proposal sets out to break this practice citing cases of some of their contributors being “poached” by other projects.

Cronje Backtracks

The decision to make this change started when Andre Cronje, creator of the YFI space, spoke on the difficulties of operating in the decentralized finance industry. In a medium post from February 2020, Cronje explained that many people demanded too much from him, and running the Yearn Finance platform was getting costlier by the day.

The developer additionally questioned his decision to limit the number of YFI tokens in his “fair launch,” adding that minting more tokens could be the best way to reward developers. Although a lot of reactions followed his public address, Cronje has expressed his pleasure at the proposal’s acceptance.

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Author: Jimmy Aki

DeFi Season in Full Swing; Blue Chip Tokens Climbing Up the Ranks

DeFi tokens exploding yesterday with Cream (55.5%), SYN (55%) MTA (46%), 1inch (34%), AAVE (28%), bzrx (26%), SWRV (24%), UMA (22%), and UNI (21%) leading the market.

This had the total value locked (TVL) in decentralized finance (DeFi) at a new ATH above $23.85 bln, DeFi Pulse.

Meanwhile, the market cap of the top 100 DeFi tokens has reached $30 billion.

These gains result in DeFi tokens gaining higher ranking in the entire cryptocurrency market, with Polkadot (DOT) replacing XRP at 4th space, with Uniswap (UNI), Aave, and Synthetix (SNX) particularly climbing up the ranks to become 17th, 18th, and 23rd (now 24th) largest crypto assets by market cap.

Given the development and repricing, DeFi tokens see it won’t be long before several of them join the top 10.

Power of on-chain cash flow

In this past week, HGET (88.8%), CREAM (88%), AAVE (70%), SUSHI (55%), CRV (55%), PEPP (54%), UNI (47%), MTA (39%), 1inch (35%), and RUNE (34%) recorded significant gains.

Cream’s gains are the result of the launch of the road to Cream V2, which aims to become the Iron bank, which “actually *creates* value for tokens like YFI and ALPHA,” which was “previously impossible,” says Kyle Samani, Managing Partner at Multicoin Cap.

YFI, currently trading around $33,420, recently announced the proposal of buying back the crypto asset, and much of the community has come out in support of this.

When it comes to Sushiswap, its TVL has hit the milestone of $2 bln.

The token SUSHI is also enjoying the greens, surging past $7, bringing the market cap of $924 million.

The DEX project has come a long way since its controversial start, steadily growing its liquidity and volume, both of which are also hitting new highs.

The same is the case for fees that have surpassed $2 million on a daily basis. Sushiswap actually incentivizes LP and token holders by charging traders a 0.30% fee on each trade, out of which 0.25% goes to LPs and 0.05% to those staking xSUSHI.

“The power of on-chain cash flow: over 58% of the circulating SUSHI supply is locked in xSushi, earning a double-digit annualized earnings yield. Coins being accumulated on centralized exchanges and moved into on-chain yield-bearing contracts is a welcome development,” noted Max Bronstein, who previously worked at Coinbase.

Still, Sushiswap’s valuation relative to sales has decreased by 40% during all this growth.

DeFi’s stablecoin not stable

Maker is also finally enjoying this uptrend as it retakes its dominant position in the space, currently at 17.84%, with its TVL surpassing a whopping $4.26 bln.

The Ethereum-based MKR is a governance token for MakerDao as well as Maker’s decentralized lending platform. The latest success in the value of the project is attributed to the increase in the supply of its stablecoin DAI.

DAI’s market cap has grown to $1.3 bln as per Coingecko, up from $129.5 mln on July 1st, 2020.

Unlike DAI, other DAI stablecoins are anything but stable with BASED trading at $0.94, AMPL $0.88, DSD $0.79, DEBASE $0.87, SHARE $0.69, ESD $0.57, and BSD $0.33.

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Author: AnTy

1inch Exchange Launches Second Liquidity Program; 1% Of Total Token Supply To Be Rewarded

1inch exchange set to reward 1% of total 1inch tokens to liquidity providers (LPs) on its platform over the course of the month. The exchange also announced new governance improvements with the launch of its upgraded Liquidity Protocol v.1.1.

Less than a month following the 1inch exchange airdrop, liquidity providers on the decentralized exchange (DEX) are set to be rewarded in the coming month in a “new liquidity mining program.” According to the exchange statement, liquidity providers from five pools, namely ETH-WBTC, ETH-1INCH, ETH-DAI, ETH-USDC, and ETH-USDT, will be rewarded 1% of the total 1inch token supply for supplying liquidity over the next month, starting January 9.

The rewards will be distributed equally to all the liquidity pools in equal shares; the statement further reads.

Back on Christmas Day 2020, every wallet that had interacted with 1inch till 24 December was awarded an airdrop of the 1inch tokens – the price rising close to 1500% once the token launched on Binance. The previous liquidity program, which ended on January 7, was a success with over 7.5 million 1inch tokens distributed to liquidity pools – realizing a 300% APY.

In the summer of 2020, the decentralized finance (DeFi) market exploded to a near parabolic state birthing along with governance tokens and yield farming. However, as Bitcoin took its strides towards setting new all-time highs, the DeFi ecosystem slowed down, but there is a recurring interest in the field as BTC and ETH prices stabilize.

The total supply of 1inch tokens stands at 1.5 billion 1inch tokens, meaning 15 million tokens will be distributed across the five pools. This represents double the first amount disbursed to 1inch exchange users.

The DEX also announced the launch of its new 1inch Liquidity Protocol v.1.1 that includes several bug fixes and new liquidity products for users to participate in. While the older program is still effective, users will need to transfer their assets and incentives to the newly upgraded platform to participate in the new program.

Could this be the start of the second DeFi craze?

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Author: Lujan Odera

1inch Airdrops its Tokens on Christmas; Price Soars 1,445% After Binance Listing

1inch Airdrops its Tokens on Christmas; Price Soars 1,445% After Binance Listing

DEX aggregator 1inch Network launched its token on Christmas and nearly 58 million 1INCH tokens have been claimed already.

Decentralized exchange (DEX) aggregator 1inch celebrated Christmas by launching its token and airdropping it to all of its users.

The network will now be governed by a DAO 1inch Foundation that released the governance and utility token.

Back in September, DEX Uniswap also airdropped UNI tokens to each of its users. Much like it, 1inch tokens were airdropped to all the wallets that interacted with the platform until December 24.

The current total supply of the token is 1.5 billion, out of which 30% is allocated to community incentives which will be distributed over the next four years. 14.5% of the supply, unlocked over a 4-year period goes to the protocol growth and development fund.

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You are qualified to receive 1inch tokens if you had at least one trade before Sept. 15 or at least 4 trades in total, or for a total of at least $20.

Liquidity providers will also receive their free tokens based on the liquidity mining program. During the first two weeks of the current incentive program, liquidity providers will receive 0.5% of the 1INCH token’s total supply.

Additionally, if you provided liquidity to any of these six pools, 1INCH-ETH, 1INCH-DAI, 1INCH-WBTC, 1INCH-USDC, 1INCH-USDT, and 1INCH-YFI, you are also eligible for free tokens.

As of now, 57,894,541 1INCH tokens have been claimed by 16,652 wallets, as per Dune Analytics.

With this step towards a more decentralized network, 1inch Network has taken the approach of “instant governance” where the community can participate, benefit, and vote for specific protocol settings.

The token will be used in all current and future protocols within the network. It starts with Aggregation Protocol governance which enables the token stakers to vote on Spread Surplus settings. As for Liquidity Protocol Governance, its key feature is the price impact fee which grows with price slippage.

“All voting will be done with the 1INCH token, which has no financial value,” states the 1inch team in the official announcement.

However, the token is currently worth $2.78, as per Coingecko.

1inch token recorded a jump of 1,445% in its price to climb above $3 after the leading spot exchange Binance announced its listing today against BTC and USDT.

Not only Binance listed the token in its Innovation Zone but it also announced a perpetual contract for 1INCH with 20% leverage. OKEx is also supported trading for the 1inch token.

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Author: AnTy

Crypto Network Fees on the Rise After DeFi Sees Signs of Another Parabolic Action

DeFi is popping again.

After two months of downward price action, DeFi tokens are bouncing back. The market cap of DeFi governance tokens that bottomed on Nov. 4 at just under $5 billion has managed to now double, at $10.2 million, in aggregate market cap in less than two weeks.

DeFi MarketCap
Source: CoinMetrics

Total notional value deposited across DeFi also hit an all-time high at about $14 billion this past week.

The growth stagnated in October and early November, but an increase in DeFi activity can be seen again in the past two weeks that helped it push to new highs.

This is because DeFi tokens are rallying again after witnessing large declines in market value. Over the past week, SUSHI gained more than 100%, SWRVE 88%, CRV 52%, and Hegic 45%.

At the beginning of summer, DeFi tokens were red hot as various assets recorded over 300% gains in a few months. Now, this parabolic action seems to be returning after a cool-off period of two months.

The return of bulls has the network fees also returning to healthy levels. Ethereum topped the list, generating nearly $2 million in daily fees, as per TradeBlock.

On Uniswap, the fees are back above $1,000,000 per day after declining to under $500,000 per day last month. Much like Uniswap, SushiSwap is generating over $100,000 in fees after declining to lows as liquidity across its platform decreased.

The Q4 also saw a new platform, Playmarket, joining the list of fee-generating crypto platforms for the first time. The Ethereum based betting platform saw an uptick in fees after the US presidential election, which brought its presidential betting market to the mainstream.

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Author: AnTy

MyEtherWallet (MEW) Integrates 1inch DEX Allowing Direct Swapping of ETH & ERC-20 Tokens

  • DEX, 1inch.Exchange MyEtherWallet (MEW) Partner
  • Directly swap Ethereum (ETH) and ERC-20 standard tokens on their wallets.

In an announcement sent to our desks on Tuesday, 1inch.Exchange, a decentralized exchange (DEX), confirmed its integration with MEW, a nexus point for transacting ETH and ETH-based products. The partnership aims at providing options for decentralized token swaps across the MEW web-based and mobile apps. Furthermore, users will be offered more diverse options to stake their tokens on MEW in a bid to improve the overall user experience.

MEW is an open-source, free, and easy-to-access Ethereum wallet that provides a secure, self-custodial platform allowing anyone to take advantage of what ERC 20 tokens have to offer. With over 1 million active users, MEW integration of 1inch.exchange will enable these users to carry out any operation from their wallets directly.

Moreover, MEW is compatible with many webs, mobile, and hardware crypto wallets such as Ledger, Trezor, MetaMask, and Coinbase. This allows seamless transfer of Ethereum-based tokens across any platform – with the wallet offering non-custodial protection.

Kosala Hemachandra, MyEtherWallet’s founder and CEO, praised the decentralized efforts by 1inch DEX aggregator that allows users to compare prices across several exchanges and select the best prices for you. In his statement on the partnership, Hemachandra said,

“Working with them to make their platform more accessible to MEW users was an easy decision for us.

DeFi is still in an experimental stage, and companies like 1inch are paving the way for greater adoption.”

The integration opens up a gateway for over 1 million participants to use a 1inch DEX aggregator in its quest to be the biggest DEX platform. Sergei Kunz, CEO of 1inch exchange said,

“With the MEW integration, they will have more options for swapping tokens directly in their wallets, as coin offerings will substantially expand.”

The latest integration follows MEW’s integration of Maker protocol earlier this year, as the wallet provider targets to take over the decentralized finance (DeFi) market. MEW has pushed itself to transform itself from being a simple wallet to a full-service wallet, mobile app, and block explorer, and trading platform.

Also Read: 1inch Exchange Upgrades Its DEX to V2; Enhanced UI & Faster Response Times

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Author: Lujan Odera

DeFi Shifts to A Risk-off Environment, But A 2017-like Crypto Rally is Still Far Off

During the recent Bitcoin rally, altcoins suffered losses, and DeFi tokens had an even worse time.

Today, as BTC went to the $13,000 level, driven by European lockdowns, the crypto market reported deeper red. This consolidation in BTC could give altcoins a chance to recover, but it’s undecided and remains to be seen.

In the past month, except for a handful of DeFi tokens like Aave and Maker, the majority of them extended their losses from last month.

The total value locked (TVL) in the decentralized finance (DeFI) sector has been unperturbed by the crash in price as it hit an all-time high at $12.46 billion on Oct. 25. But since then, it has dropped nearly 10% to about $11.2 billion, as per DeFi Pulse.

But such declines aren’t new for the TVL, and it tends to recover just as fast.

“Just want to say that we are still extremely early in DeFi. As an analogy to Bitcoin, we probably just experienced the spring 2013 hype cycle. We haven’t even seen the winter 2013 cycle yet. Let alone the 2017 cycle,” said entrepreneur and quant trader Qiao Wang.

According to him, in the DeFi hype cycle, we are currently at a point where half of the legit projects have capitulated while the other half are in the process of capitulating.

Ethereum, on which the whole ecosystem is built, price-wise, is trading around $385. The sector meanwhile has a record 9 million ETH locked in it.

DeFi tokens on Ethereum are still minuscule, though, as they currently account for 1.39% of the $365 billion total crypto market cap. In terms of a number of holders, they capture an even smaller share of the market.

DeFi governance tokens in Ethereum have declined by a third in just last month while stablecoins and tokenized versions of Bitcoin on Ethereum have managed to continue in terms of market cap.

The shift has been because of a shift to a risk-off environment into less volatile yield-generating assets. As such, yield farming is transitioning from attracting users with unsustainably high rewards “to a more methodical approach rewarding those that actually create value to DeFi protocols.”

“It appears that the catalyst for DeFi’s initial boost may also be behind its crash,” noted IntoTheBlock.

Besides the high inflation rates, the bigger the rise in the price of DeFi tokens, the larger the retrace.

“While DeFi may currently be negligible in comparison to the $1.5 trillion financial services industry, there is a high room for growth as these systems become scalable and adopted.”

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Author: AnTy

Is FTX CEO Accelerating the Deep DeFi Rout?

After going through a deep pullback in the past month, most of the DeFi tokens struggle to let go of the losses.

Although the news of Square buying $50,000,000 worth of BTC has sent the market into a tisy, not all coins are moving out of the red. Coins like UNI (+22%), LRC (+13.5%), and KNC (+5%) are recording some gains. DeFi darling YFI has manged to dig itself out of the deep red into the green (+5%).

Much like the price, the total value locked (TVL) in the DeFi Sector has declined by almost 10% to $10.12 billion, as per DeFi Pulse.

Popular DEX Uniswap, however, is an exception to this, whose TVL has jumped 30% in a fortnight.

Keep on Dumping!

As we reported, numerous popular DeFi tokens have lost 80% to 90% of their value since hitting all-time highs during the period of mid-August and the beginning of September.

But still, they continue to go down more and more, which could be seen as an opportunity for the project enthusiasts to buy these tokens at low prices which might have missed them the first time around.

In the past 7 days, more losses have been incurred by the DeFi sector, with YFII leading with almost -46% drop. Other notable losers include SUSHI (-41%), CRV (-37%), YFI (-29%), SWRV (-33%), bzrx (-37%), UNI (-24%), UMA (-25%), LEND (-20%), and SNX (-17%).

As another round of losses hit DeFi tokens, Twitterati points to derivatives exchange FTX CEO Sam Bankman-Fried shorting YFI, CRV, and UNI.

Some market participants speculate that Bankman-Fried might be behind the latest dose of losses, especially for YFI, CRV, and UNI, which he has been dumping on leading spot exchange Binance.

It is worth noting that Bankman-Fried is also the CEO of the quantitative cryptocurrency trading firm Alameda Research.

The Catalyst…

While some aren’t liking it, others said Bankman-Fried is simply shorting a few cryptos, which means he believes the coin will decline in value.

Jason Choi of crypto fund The Spartan Group found it all absurd, stating, “Always find it amusing that the idea of shorting is deemed evil on crypto twitter.”

And if you think Bankman-Fried will short his FTT or SRM, that’s a big fat no, because he ain’t short on his creation, of course, rather he is “long as fuck.”

Trader Moon Overlord also pointed out the obvious nature of the situation, which is “a person apart of a trading firm does a trade.” Back in late August, when FTX acquired the crypto portfolio tracker Blockfolio, the trader said, “FTX didn’t pay for a portfolio tracker they could build in 5 minutes they paid $150M for your data and bag info.”

The market also likened Sam’s behavior with billionaire investor George Soros acting as a catalyst in collapsing the British pound in 1992 by shorting it.

In the process, Soros made an estimated $1 billion profit. While that incident was viewed as “a permanent black mark on the UK as a center of financial prestige,” following the event, “Britain entered a period of growth and prosperity,” noted Sahil Bloom, VP at Altamont Capital Partners.

If not Soros, someone else would have used the opportunity to their advantage, and he “merely accelerated” the process. The same could be seen in the DeFi market, which may finally find its bottom and embark on a new bull run.

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Author: AnTy

YFI Ready to Take Off As The ‘Ultra High Beta’ or About to Get Smoked?

The DeFi market is going through winter right now, as prices of these tokens take a pullback after making all-time highs during August and September.

Since hitting those peaks, some Defi tokens have taken a harsh beating, like CRV, SUSHI, and bZx, which are down over 90%, some like Aave, Maker, and Loopring only went down about 40%. Amidst this, Yearn.Finance’s governance token YFI is somewhere around the middle.

In August, 1 YFI became equal to 1 BTC and then went past Bitcoin’s ATH $20,000 soon after. It was in the mid of September that YFI hit its peak at $43,678, as per CoinGecko.

Making new highs means the digital assets have to get ready for a correction, and that’s exactly what happened as the DeFi sector as a whole went through a winter.

So Much More Affecting YFI

YFI’s losses were exacerbated because of Eminence.Finance, a project by YFI founder Andre Cronje that rug pulled $16 million. Trader and economist Alex Kruger said,

“YFI has been getting Creamed. Recent underperformance relative to other cryptos has been notable. One could argue it is the chart. But it is not. One can find plenty equally poor charts across crypto. This IMO is the marketplace punishing YFI by removing the Cronje premium.”

According to him, although yields matter which has fallen, the blatant negligence around the EMN launch from Yearn and “how poorly the aftermath was handled… many exited/reduced YFI positions because of it.”

At the time of writing, YFI/USD has been trading at just above $18,000.

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Another reason for this poor performance could be the overall drop in activity in the DeFi sector. Jason Choi of crypto fund The Spartan Group said,

“August has been a phenomenal month for DeFi bulls. Now we’re in the hangover phase of the DeFi party.”

Amidst this rout, we are seeing “flight to quality in yield farming,” with Uniswap accounting for 70% of all TVL in yield farms despite its modest returns of 20%-30%. Choi said,

“The shift in sentiment was rapid. Even “degen” farms offering north of 1500% APY are only attracting ~1/10th of the TVL they did just a month ago.”

“drop is risk appetite and collapse in APY is a direct result of -ve price performance of new crop tokens.”

Moreover, with CRV “buckling under continual inflation sell pressure,” it is affecting YFI as well as yCRV APYs on Yearn.Finance accounts for 60% of its activity.

Macro in Focus

While some call for YFI to go down to four digits due to a head and shoulders pattern, trader Josh Rager sees it making new highs as it has found support at a major 0.618 fib level.

Kruger is also still bullish on this DeFi token despite the price of the token crashing 45% in six days as he said,

“The YFI bigger picture bull case remains unchanged. Odds are high this whole ordeal is short term noise.”

The EMN event, however, should remind speculators of YFI’s high ‘founder risk’ as seen in early August when an interview about Cronje “close to quitting DeFi” tanked the price of YFI.

Overall, the trader expects crypto to take off again after the elections and for DeFi to push even further “as the ultra high beta.” Kruger said,

“Macro matters now. So it makes sense to play from the long side. But if crypto crashes, YFI would get smoked, and no fundamental analysis would stop that.”

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Author: AnTy

YFI Founder Andre Cronje ‘Still Building’ the DeFi Project that Got Hacked for $16 Million

Amidst the craze and shift toward non-fungible tokens (NFT), DeFi sweetheart yEarn’s founder Andre Cronje’s latest project saw rug pulled on $16 million.

The project was Eminence Finance (EMN), an unreleased and unfinished gaming multiverse project whose smart contracts were deployed last night but without any announcement.

But nothing remains out of the sight of crypto, especially the DeFi degens, more so when Cronje is involved.

The community soon discovered the project that had zero information available about it except for the two tweets subtweeted by Cronje, who, in his explanation, today, said the project is “at least ~3+ weeks still away.”

The twitter account of eminence.finance already has over 5,900 followers.

As is natural in high-risk DeFi projects, people rushed in with their funds to get in on a new YFI-related project. In a matter of a few hours, $15 million funds were used to mint EMN tokens.

Liquidity soon hit the largest DEX Uniswap, and the EMN-ETH market saw volume rising to millions, still at $11.7 million. Meanwhile, the price of EMN that went to $0.00003739 has crashed to $0.00003052.

And just as is normal in the DeFi world, an attacker exploited the unaudited code and swept away with all the $16 million.

The exploit was a “simple one” – “mint a lot of EMN at the tight curve, burn the EMN for one of the other currencies, sell the currency for EMN.”

The hacker sent $8 million of the stolen funds to Cronje’s deployer account, all of which yEarn treasury will be refunding to the holders after he received “a fair amount of threats.”

Despite the debacle, Cronje hasn’t given up on the project and is still building Eminence Finance.

“I am also going to continue deploying test contracts. I have over ~100 deployed contracts, of which probably >half have vulnerabilities. Please wait for official announcements,” he said today.

Trader and economist Alex Kruger noted that the hack losses are small in comparison to the 20% crash in YFI, following the news, currently trading at $25,275, “where the real damage was inflicted.”

“Price will likely recover fast, markets have short memories for this sort of events. Hopefully there are some lessons in there for everyone involved,” he added.

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Author: AnTy