Yearn Finance v2 Launch Nears But YFI Dumps 24%

Decentralized finance protocol Yearn Finance has entered the final preparations for its version two launch but that has failed to prevent its native YFI token from slumping.

In its latest weekly update, Yearn Finance has summarized its most recent DeFi offerings, which include leveraged vaults when version two finally goes live.

It added that two out of three scheduled audits for Yearn v2 have been completed and the third audit is pending. There was no confirmation of the launch date just yet, and the newsletter simply stated that it will share new information regarding the upcoming launch in the near future.

More DeFi Leverage

In collaboration with partners and new acquisitions Cream Finance and Alpha Homora, Yearn will be launching cross-platform strategies that allow up to 90x leverage on stablecoins and 80x leverage on ETH.

“Users will be able to deposit DAI and borrow an equivalent dollar amount of ETH via C.R.E.A.M and enter SushiSwap liquidity pools utilizing Alpha Homora’s leveraged yield-farming product.”

Alpha Homora is a product by Alpha Finance Lab which allows leveraging positions in yield farming and liquidity providing pools.

The new strategies effectively encourage yield farmers to hold on to their newly farmed tokens and reinvest them for better returns rather than dumping them on the markets (which appears to be happening at the moment).

There has also been testing and development of a potential product offering impermanent loss protection and enabling single-sided liquidity for Automated Market Makers. Impermanent loss is described as the difference between holding an asset and using it for liquidity provision; it occurs during periods of high price volatility.

The newsletter also mentioned the release of a yVault alert bot that tracks withdrawals and deposits from Yearn vaults and reports the highest-earning vault of the month. Currently, this is the liquidity pool earning 15.5% APY.

YFI Price Beats a Retreat

The major cryptocurrency market correction is taking no prisoners today, and YFI is dumping hard with its DeFi brethren. The upcoming launch of Yearn v2 has not prevented the inevitable slide as YFI drops 24% over the past 24 hours.

According to Coingecko, YFI has collapsed from just below $38,000 to around $28,000 at the time of writing. In dollar terms, it has lost more than Bitcoin, which is currently undergoing its largest correction since March 2020.

Despite the dip, YFI is still up 20% over the past 7 days and 23% on the month. If the crypto market uptrend resumes, these losses will soon be wiped out by traders “buying the dip.”

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