Newly formed DeFi platform yEarn launched its token YFI on July 17 - and yields are currently standing at 1000%. The protocol has seen a total locked in value of over $480 million with the YFI token rising by 80 times, reaching as high as $2,324. It is priced at $1,134 at the time of publishing.
The team has several products prepared, though not all have been launched. There are currently two products that are live: yearn.finance and yswap.exchange. The former is a profit switching lender i.e users’ deposits are switched between dydx, Aave (LEND), and Compound Finance (COMP) autonomously for the best rates. yswap.exchange is an automated market maker.
The large influx of funds had some Ethereum (ETH) community members worried, as there were flaws that could have allowed yEarn founder Andre Cronje to mint an infinite number of tokens. This has since been fixed with the introduction of multi-sig wallets that requires 6 out of 9 participants to approve a change. Cronje is not a member of this multi-sig wallet.
yEarn immediately handed all control of the network over to users. It has been described by the team as a “valueless” token as there is no pre-mine or sale, and because it has to be earned. The description goes,
We have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value. There is no pre-mine, there is no sale, no you cannot buy it, no, it won’t be on uniswap, no, there won’t be an auction. We don’t have any of it.
Chainlink (LINK) community ambassador ChainLinkGod posted the astonishing returns, which will likely be only temporary.
The DeFi market is showing no signs of slowing down, having crossed $3 billion in total locked in value - adding $1 billion since July 7.
