Bitcoin
BTC$61 458.98

1.11%

Ethereum
ETH$4 082.48

2.76%

Binance Coin
BNB$482.29

0.16%

Cardano
ADA$2.16

0.70%

Tether
USDT$1.000592

0.06%

Solana
SOL$199.26

-3.69%

As Yearn.Finance’s yield vaults grow, crop projects define boundaries


16 Jun 2021

#yearn.finance

Alchemix and Yearn.Finance appear to be squaring off with Curve and PoolTogether, but for now there appear to be harmonious solutions. With millions and even billions of dollars at stake, industrial-scale yield farming is leading to pockets of resistance as some projects refuse to be left with the chaff.  In the past week, team members from no-loss lottery project PoolTogether and exchange liquidity pool provider Curve Finance have proposed ways to reduce the load Yearn.Finance strategies place on their protocols and governance tokens.

In a Tweet on Sunday, PoolTogether co-founder Leighton Cusak noted that Yearn has become the primary beneficiary of many of the protocol’s DAI lotteries, as Yearn controls 57% of all DAI funds ($27 million of the $47 million in the pool at the time of writing) and therefore has a disproportionate chance to win.

“At this scale, it becomes problematic as they monopolize the chances to win and marginalize the core value prop of the protocol,” Cusak wrote on Twitter.

Likewise, in a governance proposal today “Charlie,” a representative of the Curve core team, put forth a vote to remove the CRV benefits given to the alUSD pool. alUSD is a stablecoin from Alchemix, a project which issues loans based on future yield from deposits into Yearn vaults; Yearn vaults, in turn, use stablecoins and other assets to farm Curve’s CRV token.

Both instances of projects bucking under Yearn’s weight led to speculation on social media that there may be personal hostilities motivating what looks like a protocol-level sharecropper’s revolt (Alchemix opted to use Curve competitor Saddle for a new synthetic ETH pool); that Yearn may be overzealous with its farm-and-dump strategies; and that there could be “governance wars” creating friction in what should be an open ecosystem. Likening the dynamic to a “war” appears to be overblown, however.

In an interview with Cointelegraph, Cusack said that PoolTogether has already agreed to onboard Yearn as an interest provider for the lotteries, and in turn Yearn will cease acting as a whale flopping in their pools. 

“We have recently completed an integration with yearn and it is being audited. This means our prizes pools can use Yearn for yield. This is better as it will yield a higher APR. It also means that Yearn won't be able to deposit into PoolTogether as that would create a risky recursive loop,” he said.

He also noted that “Yearn keeps 10% of all the POOL tokens it accrues” and that POOL emissions were cut 50% late last month.

“I've found them to be very helpful and willing to make changes to reach a more optimum outcome.They ultimately understand that our success brings more success to them,” Cusak added of the Yearn team.

Likewise, Charlie of Curve noted that the governance proposal is an effort to mitigate a recursive CRV emission structure, similar to what PoolTogether is looking to achieve with their new arrangement.

“Alchemix and alUSD are awesome products which partly make their yield by selling CRV which is why the community raised the point [they] shouldn't receive CRV on top (the double dipping). It is not a hostile proposal towards Alchemix, just a way to see if the rest of the Curve DAO feels the same way about it and if they indeed do feel like it's abusing the system. It has nothing to do with the selling,” he said.

While the battle between farmer and crops for the time appears to have been staved off, Cusak did say that there remains a fundamental conflict that could eventually bubble into a governance fight.

“There is inherently a tension between protocols wanting deposits to drive growth and those depositors wanting to maximize yield be selling the protocol token.”

While the DeFi ecosystem prides itself on elegant economic designs and logical systems, when it comes to governance hot heads do sometimes lead to conflicts. Earlier in the year, insurance/coverage protocol Cover and Yearn.Finance announced a cessation of a merger that some parties likened to a divorce. 


Related

Yearn.Finance in Miami: Developer talks new vaults, products, and verticals
Yearn.Finance in Miami: Developer talks new vaults, products, and verticals
Total crypto market cap gains $400B as DeFi tokens lead the recovery
Total crypto market cap gains $400B as DeFi tokens lead the recovery
Yearn.finance price nearly hits $70,000 - What’s driving the YFI bulls?
Yearn.finance price nearly hits $70,000 - What’s driving the YFI bulls?
Yearn Finance surges 45% as it joins dog pack with WOOFY
Yearn Finance surges 45% as it joins dog pack with WOOFY
Yearn Finance price nearly hits $70000 - What's driving the YFI bulls?
Yearn Finance price nearly hits $70000 - What's driving the YFI bulls?
We all know the issues with DeFi - but what are the answers?
We all know the issues with DeFi - but what are the answers?
Yearn Finance made almost as much as in March as it did in 2020
Yearn Finance made almost as much as in March as it did in 2020
Shopify CEO muses integrating e-commerce giant into DeFi ecosystem
Shopify CEO muses integrating e-commerce giant into DeFi ecosystem
DeFi TVL sets new record as BSC-powered protocols add billions
DeFi TVL sets new record as BSC-powered protocols add billions

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 63.6% 76 $61 458.98 1.11% 0.86% $1 158 625 753 535 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 73.6% 57 $4 082.48 2.76% 4.46% $481 915 061 527 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 70% 60 $482.29 0.16% 3.20% $80 446 405 900 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 87.6% 12 $2.16 0.70% -1.89% $71 167 764 217 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 90.8% 1 $1.000592 0.06% 0.08% $69 615 287 907 USDT 7 days price change
6 Solana (SOL) SOL Solana predictions 69.2% 55 $199.26 -3.69% 24.90% $59 943 388 956 SOL 7 days price change
7 XRP (XRP) XRP XRP predictions 71.6% 52 $1.096591 -0.01% -4.83% $51 480 920 850 XRP 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 60.4% 79 $43.95 -1.00% 3.42% $43 402 953 033 DOT 7 days price change
9 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $1.000647 0.05% 0.06% $32 532 146 411 USDC 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 72.8% 56 $0.246780 2.75% 2.73% $32 529 149 725 DOGE 7 days price change
11 Terra (LUNA) LUNA Terra predictions 69.2% 65 $43.20 0.80% 16.53% $17 346 794 216 LUNA 7 days price change
12 UniSwap (UNI) UNI UniSwap predictions 74.8% 49 $25.88 0.71% -5.55% $15 826 587 358 UNI 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 67.6% 65 $66.01 -2.29% 10.46% $14 541 070 585 AVAX 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 74% 49 $31.21 8.63% 10.49% $14 389 277 934 LINK 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 66.8% 75 $61 467.14 1.06% 0.81% $13 589 956 947 WBTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.