Yearn.Finance (YFI) New Year Breakout Continues
What is Yearn.Finance (YFI)?
- Vaults: Similar to savings accounts, users deposit cryptos and the platform seeks the highest available yields. Users simply need to select their preferred strategy, make a crypto deposit, and let Vaults do the rest. Unlike fixed deposits and other high yielding banking products, users may withdraw their assets at any time.
- Labs: Users with greater risk appetite can find the latest strategies for enhanced returns.
- Iron Bank: A DeFi lending product used by protocols and by individuals. Loans are overcollateralized for individuals to account for crypto volatility.
In addition, there is an Earn product. Here the platform moves supported coins between a number of lending protocols to generate the highest yield. Supported coins include DAI, sUSD, tUSD, USDC, and USDT.
The Yearn ecosystem is governed by YFI token holders. Two-thirds of a 9-member multi-signature wallet must agree to any changes.
The Driving Force Behind the Breakout
Yearn.Finance (YFI) has been in the news in recent weeks, driving the latest price breakout. Key, however, was news hitting the wires of a proposed change to the project’s tokenomics. The proposal is to “direct a portion of YFI bought back by the Treasury as rewards to YFI token holders who actively participate in Yearn Governance”. See here for full details of the proposal.
Yearn.Finance (YFI) Price Action
It may not have been the most impressive of years for YFI, which gained just 45% in 2021. YFI closed out the year at $33,000 levels, falling well short of an ATH $95,339 struck in mid-May.
Fortunes appear to have changed, however, following the news hitting the wires of the proposed tokenomics changes.
At the time of writing, YFI was up by 5.77% to $41,391. This morning’s upside follows 4 consecutive days in the green that included a 10.69% New Year’s Day rally. The breakout has seen YFI jump by 45% since 30th December.
Having broken through a December high $39,354, the next key resistance level will be September’s high $43,843. Investors will be watching closely, as a break back through to $45,000 levels would then bring last May’s ATH $95,339 into play.
At the time of writing, Yearn.Finance was ranked 79th on CoinMarketCap, with a market cap of $1,506m.