The poor performance of the cryptocurrency market did not affect Yearn Finance. The protocol’s management token, YFI, reached its all-time high on May 11, approaching $ 70,000.
YFI broke a record
YFI / USD has gained 10.02 percent, or $ 6,258, in the last 24 hours to $ 68,748. The pair fell to $ 67,067 soon after investors decided to take a profit. However, this decline, which was low compared to the prevailing uptrend, was short-lived and YFI rose again to the $ 68,300 band by translation release time.
YFI also performed well compared to Bitcoin (BTC), whose uptrend slowed after approaching $ 65k last month. The YFI / BTC pair climbed as high as 1.25 BTC on Tuesday, the high of the last five months.
YFI has been performing poorly compared to other cryptocurrencies so far in 2021. YFI has increased by nearly 160 percent since the beginning of the year, while its competitors have shown value gains expressed by thousands of percent.
It seems that the benefit to crypto money, at least in the current quarter, is that it has solved its major problems.
Banking infrastructure for DeFi
Yearn Finance started shaking in 2021. The protocol’s biggest problem as the new year started was the lack of funding. Yearn Finance had no reserves reserved for core contributors, limiting the protocol’s appreciation. Yearn Finance’s creator, Andre Cronje, even conveyed his anger in a blog post titled “Doing Business on DeFi Sucks”.
However, the protocol saw great engagement from the community in the following weeks to resolve the reserve problem. YFI owners made two proposals and accepted them through a democratic vote. The first update called “Buyback and Build” supported the buyback program that added YFI to the treasury for redistribution.
Another proposal, called “Funding Yearn’s Future”, resulted in the production of 6,666 new YFI tokens to create a protocol treasury focusing on funding core contributors.
The next update in mid-January, Yearn V2, initially received negative reviews with UI issues, but the team successfully resolved these issues. The total value locked to the Yearn Finance pool the following month reached $ 4,243 billion.
Among the biggest changes coming with Yearn V2 are the new fee structure, multiple strategy vaults, and drastically different strategies within the new ecosystem partnership with Cream. YFI price also reacted positively to all these changes.