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Yearn.finance Founder Andre Cronje Introduces New DeFi Protocol Deriswap for Capital Efficiency

Another project has been introduced by Yearn.finance’s founder, Andre Cronje. The new decentralized finance (DeFi) protocol unveiled by Cronje, is Deriswap. According to Cronje, Deriswap is a protocol that combines different DeFi services, including options, loans, and swaps into a single contract.

The creation of Deriswap aims to combine different services in DeFi into a single capital-efficient contract, allowing the interaction between two assets to make up the pair. Cronje explained:

“Deriswap (currently under audit), combines Swaps, Options, and Loans into a capital-efficient single contract, allowing interaction between the two assets that make up the pair.”

Cronje has been “increasingly obsessed” with capital efficiency, as the current liquidity is segmented.

Deriswap is currently under audit, and its launch has not been announced as of press time. It also remains unclear whether or not Cronje would introduce a new cryptocurrency for the project.

Yearn.finance, Cronje’s yield optimization protocol was launched earlier this year, in July. Yearn.finance’s governance token, YFI has gained massive traction, hitting an all-time high of $43,000 per token, and has since been the most expensive cryptocurrency in the market. YFI is currently trading at $25,941 at the time of writing.

Cronje has found success within the DeFi ecosystem and has previously explored different DeFi products and projects. However, his recent project, Eminence Finance has attracted a hack that exploited users’ liquidity.

Although Eminence Finance had no website at the time and had not officially launched, Yearn.finance token YFI holders have already deployed capital into the Eminence contracts. While the Eminence game project was still under development, Cronje deployed smart contracts as part of his personal process of testing his products on the Ethereum mainnet.

There was an unfortunate bug in the deployed contracts, allowing a user to withdraw $15 million worth of DAI from the contracts, although the user put in much less. After the $15 million were exploited, $8 million was sent to Cronje’s yearn account.

Cronje’s latest project, the Keep3r Network has seen much success, as its token, the KP3R token has rallied over 2000 percent since its inception.

Yearn.finance Takes Pickle Finance Protocol Onboard to Enhance DeFi Rewards

Two leading decentralized finance (DeFi) protocols Yearn.finance and Pickle Finance, have teamed up to formulate a structure that will leverage shared expertise, boost specialization, and minimize work duplication. Yearn.finance will absorb Pickle protocol into its own DeFi ecosystem.

Working symbiotically

Through the strategic partnership, the two DeFi protocols will work symbiotically as Pickle will be integrated into Yearn’s ecosystem and provide its security and development expertise.

Per the report:

“Pickle and Yearn developers have worked out a structure to allow the two projects to work together in symbiosis. This is done to reduce duplicate work, increase specialization, and to leverage shared expertise.”

Yearn is a yield optimization protocol aimed at aggregating liquidity and automating marketing by moving investments between platforms like Compound, Aave, and dYdx. Despite this DeFi platform being launched in July, its popularity has risen to the extent of its token YFI one time hitting $38,000 in late August, and this run beat Bitcoin’s record price rally in 2017. Later on, in early September, it smashed this record by rising to $39,600.

On the other hand, Pickle is a yield farm DeFi platform that helps key stablecoins stay on track with their target price. For instance, it induces the sale of stablecoins trading above their set goal and the purchase of those hovering below.

Boosting yield farming

Under the new Yearn.finance framework returns accrued from yield farming with Pickle will be boosted. Furthermore, Pickle will avail reward gauges that will enable Yearn vault depositors to earn additional rewards. As per the announcement:

“Pickle tokens are rewarded through staking Yearn vault tokens in Pickle gauges. The emissions schedule stays roughly the same. Rewards can be boosted by DILL. Reward gauges may earn Pickle based on the underlying Yearn vault token.”

Recently, Yearn.finance’s founder Andre Cronje introduced Deriswap, a new protocol that combines different DeFi Services like swaps, loans, and options into a single contract.

The booming DeFi sector has made Ethereum (ETH) price shoot through the roof, as evidenced by new data by Glassnode that showed crypto wallets holding more than one ETH hit a record high of 1,170,598 addresses. ETH is currently trading at around $595 at press time.

Yearn.finance Announces Partnership With Cream and New Lending Project: Stable Credit

Yearn.finance founder Andre Cronje has recently published details of an upcoming integration with Cream, a lending protocol in the decentralized finance (DeFi) ecosystem. For the launch of Cream V2, Cronje explains the integration of the two protocols in a blog post.

In Cronje’s blog post, the two protocols will merge development resources for introducing interactions between the two protocols.

For Yearn.finance’s users, they would be able to use their share in a yield farming strategy fund as collateral to borrow on the Cream protocol. Users would also be able to access leverage on the platform, to increase their yield.

Through this merger, the two protocols will still remain independent, although there are many synergies that resemble a merger. This partnership would also see future releases, as Cream will be responsible for lending products.

A lending platform about to be launched that was built by Yearn.finance, called Stable Credit, will be launched through Cream. Stable Credit is a zero-collateral protocol enabling more flexibility in lending.

Although the blog post has explained many different synergies between the two protocols, the community has had concerns about not being consulted before a merger. Earlier this week, Yearn.finance and Pickle Finance had the DeFi industry’s first effective merger.

Yearn.finance announced a partnership with Pickle Finance earlier this week to boost yield farming incentives, and to solve the issue of the exploit of which Pickle Finance faced in the loss of almost $20 million in Dai.

According to Cronje, the partnership was to reduce work, increase specialization, and leverage shared expertise. The goal of the partnership is to boost returns for yield farmers with Pickle Finance strategies by enabling the earning of increased performance fees under the Yearn fee structure.

These mergers highlight that although there is a governance token for the Yearn.finance protocol, the YFI token, the core team has made the move to approve the recent partnerships. This might go to show that the community could be triggered in the future by the role of the governance token YFI, as the protocol may not be as decentralized as expected.

SushiSwap (SUSHI) Token Price Surges Over 15% After Merger with Yearn.finance

Decentralized finance SushiSwap’s native token SUSHI has surged over 15 percent in the past 24 hours, while Bitcoin and other large cap altcoins are in a sea of red. SushiSwap’s SUSHI token has become the best performing asset in the past 24 hours, and the DeFi token has been able to climb nearly 60 percent in a week.

While Bitcoin has attempted to surpass the $20,000 resistance level while hitting its all-time high, selling pressure quickly accumulated and the digital asset dropped 7 percent.

After the founder of Yearn.finance, Andre Cronje revealed that SushiSwap would be merged with the team of Yearn.finance, the SUSHI token quickly rose. Cronje announced the merger, saying:

“As Sushi focused on expanding their AMM ecosystem, and as Yearn focused on expanding their strategies, more and more overlap became apparent, Yearn needed custom AMM experiences for their strategies, and Sushi started pushing the boundaries of yield and money markets.”

The decentralized finance (DeFi) industry has also seen a boom lately, with over $14.4 billion in cryptocurrencies locked. MakerDAO continues to be in the lead with the most cryptocurrencies locked, almost reaching $3 billion, after SushiSwap’s original blockchain before its fork, Uniswap recently lost most of its dominance in the ecosystem.

SushiSwap currently has over $790 million in total value locked and is currently trading at $2.25 per token. SushiSwap is also expected to roll out new products in the future, which would enable it to differentiate itself from other automated market makers (AMM) in the DeFi ecosystem.

The last time SushiSwap’s SUSHI token price surged was when Uniswap’s rewards ended. SushiSwap’s TVL climbed over 150 percent the day Uniswap’s rewards ended and has reached above $1 billion. Bancor, another decentralized exchange has released a liquidity mining program, which includes retroactive rewards on Nov. 17.

DeFi to Reach $20 Billion in Total Value Locked by the end of 2020

The decentralized finance (DeFi) industry recently reached over $15 billion in total value locked before dropping back to $14 billion in TVL. At the time of writing, the total value locked in DeFi is currently $14.68 billion.

Considering 2020 has been a year of rapid growth for the DeFi industry, DeFi Pulse predicts that the industry could reach $20 billion in TVL by the end of 2020. DeFi Pulse further explained:

“There’d still be a decent amount of ground to cover, of course, as DeFi’s TVL has since ceded from Monday’s top to ~$14.05B currently. With $15B now notched, though, $20B and beyond seems more in reach than ever. In the meantime, let’s see if the last 3 weeks of 2020 are defined by more decline, another acute DeFi surge, or chop somewhere in between!”

In the past 24 hours, some of the DeFi tokens have made some sizable movements. Aave (AAVE) has gained over 3%, Synthetic Network Token (SNX). Other best-performing assets include IDLE, gaining over 400%, COVER 150%, Compound (COMP) 13.8%.

In a recent thread regarding crypto trends to look out for in 2021, Ryan Selkis, the CEO of crypto research firm Messari noted that DeFi has seen 15x growth this year. Decentralized exchanges and protocol native stablecoins, as well as credit markets are essential for a true parallel financial system, the CEO noted.

Messari noted that the decentralized exchanges (DEX) now comprise over 13.6% of total volumes, which increased from 2.8% at the start of the quarter. Dynamic automated market makers (AMMs) ultimately illustrate the power of composability, according to Selkis. Curve and Balancer have optimized AMMs that drive DeFi adoption. Curve allowed DeFi stablecoin markets to be ten times more liquid, while Balancer made it less risky, and more lucrative to be a market maker by pooling assets.

Yearn.finance (YFI) which has seen its token surge and eclipsing Bitcoin’s price this year, is up by 81,268% this year from its all-time low at $31.65. Selkis commented:

“Yearn is eating the entire DeFi industry. Anything that can be incorporated into the “Wealthfront of DeFi” will be. Religious (and now wealthy) early adopter community.”

Yield farming in the DeFi space has been seeing a growth in popularity, as crypto whales have been leveraging DeFi protocols to generate high rates of return. Although DeFi enables an ecosystem of decentralized applications to have access to financial products including cryptocurrencies, yield farming is most profitable only to crypto whales, who are able to have a high amount of crypto locked up in DeFi.

Yearn finance’s vaults enable the process of seeking the best returns for yield farmers, with the yETH vault, for example, pooling funds to reduce Ethereum gas fees.

Yearn.finance’s YFI Token Pumps to a New Record High of $95K

Yearn.finance is a decentralized finance (DeFi) digital asset management platform built on the Ethereum network to optimize the yield rate of cryptocurrencies, through crypto lending and trading services.

Within this platform, the tokens that investors deposit to yearn.finance will be converted to yTokens, which are periodically rebalanced and aggregated through lending services Aave, Compound, and Dydx to provide the best price for traders.

On May 12, amid the hype caused by Elon Musk’s endorsement of Dogecoin (Doge) and SHIB token, Yearn Finance developers launched a new token called WOOFY. This token is interchangeable with yearn.finance’s governance token YFI.

A Yearn developer named “Banteg” introduced the concept of WOOFY on Twitter and said:

“The blue dog companion token of Wifey utilizes special Woof technology which allows two-way conversion between the two. That means you can be exposed to a lighthearted dog coin and the DeFi darling blue chip at the same time.”

Today, Yearn.finance official announces their yCRV & y3CRV vaults are migrating from v1 to v2 to earn a higher yield.

Source: YFI/USDT Daily via TradingView

Amid the hype of meme coins like Doge, YFI set a record high this morning, spiking to $95,000. However, it has since pulled back a bit to trade at around $83,000 at the time of writing.

On their end, memecoins currently have retraced from their highest price point. Dogecoin is currently trading at $0.51, which is about a 30% retracement from its all-time high of $0.74. As for SHIB, the token retracted by 25% and is currently trading at $0.00002937.

Source:DeFi Pulse

According to DeFi Pulse data, Yearn.finance ranks as the 10th largest DeFi protocol, with a total locked value also setting a new record high of $4.36 billion today.

Investors may be surprised by the expensive price of YFI, which is higher than Bitcoin, which is priced at around $56,868 at the moment and is the largest cryptocurrency, with a market cap of $1.06 trillion. The reason why YFI token is so expensive is mainly due to its limited circulation supply.

According to CoinGecko, YFI has a cap of approximately 36,000 tokens. Currently, it has a market capitalization of about $3.2 billion, and as demand for YFI goes up, its price will too.

DeFi Hackers Mint $11.6M in Stablecoins

A recent hack in the decentralized finance (DeFi) space allowed an attacker to mint over 1 quadrillion Yearn Tether (yUSDT) from a mere $10,000, according to blockchain security firm PeckShield. The attacker then exchanged the yUSDT for other stablecoins, taking hold of $11.6 million in the process. The stablecoins included 61,000 Pax Dollar (USDP), 1.5 million TrueUSD (TUSD), 1.79 million Binance USD (BUSD), 1.2 million Tether (USDT), 2.58 million USD Coin (USDC), and 3 million Dai (DAI).

PeckShield reported that the hacker has already transferred 1,000 Ether (ETH) to Tornado Cash, a sanctioned cryptocurrency mixer. The blockchain security firm also informed DeFi protocols Aave and Yearn.finance of the situation.

Yearn.finance released a statement after conducting an initial investigation, stating that the issue was limited to iearn, an outdated contract before vaults v1 and v2. The DeFi protocol assured its users that its current contracts and protocols are not affected by the exploit.

Similarly, Aave also confirmed that it is aware of the transaction. The liquidity protocol clarified that the hack did not impact Aave v1, v2 or v3.

While hacks still plague the DeFi space in 2023, the amount of money lost to these incidents has decreased compared with previous years. According to a quarterly report by blockchain security firm CertiK, over $320 million were lost to hacks in the first quarter of 2023. Although this amount is still substantial, it is much lower compared to the first quarter of 2022 when $1.3 billion was lost, and the fourth quarter of 2022 when $950 million was lost to hacks.

Despite the decrease in the amount lost to DeFi hacks, these incidents still serve as a reminder of the importance of security measures in the space. PeckShield’s quick detection of the recent hack and Aave and Yearn.finance’s prompt action in addressing the issue demonstrate that the DeFi space is continuously improving its security measures.

As the DeFi space grows, it is likely that there will be more attempts to exploit vulnerabilities in the system. However, with increased awareness and investment in security measures, the space can continue to thrive and offer innovative solutions to traditional finance.

dYdX Utilizes $9M Insurance Fund Following Alleged Targeted Attack on YFI

The decentralized exchange (DEX) dYdX experienced a significant financial event on November 17, requiring the use of its insurance fund. The exchange had to cover $9 million worth of customer liquidations following a dramatic market fluctuation. Antonio Juliano, the creator of dYdX, labeled the event as a “targeted attack,” suggesting a deliberate attempt to destabilize the exchange’s financial stability.

Before November 17, the price of Yearn Finance (YFI) token surged by over 170%, only to plummet by 43% on the day of the incident. This abrupt price drop has raised concerns within the crypto community about potential market manipulation or even an exit scam. The focus of the alleged attack was on long positions in YFI tokens on the dYdX platform, leading to nearly $38 million in holdings being liquidated.

Juliano emphasized that the v3 insurance fund, despite the substantial payout, remains well-funded with $13.5 million. He reassured users that their funds were not impacted by the incident. In response to community concerns, dYdX announced that no user funds were affected and that an investigation is underway. Furthermore, dYdX is conducting a thorough review of its risk parameters and considering changes to both the v3 and potentially the dYdX Chain software to enhance security and prevent similar occurrences.

The crypto community has expressed alarm at the sudden market shift, with some speculating about insider involvement in manipulating the YFI market. Concerns were raised about the sufficiency of the remaining insurance fund and the steps dYdX is taking to prevent future attacks. There were claims that developers controlled multiple wallets holding a significant percentage of YFI tokens, though these claims were not conclusively backed by Etherscan data.

dYdX’s commitment to transparency in its investigation process is crucial in maintaining user trust. The team is collaborating with several partners to uncover the specifics of the incident and is expected to provide updates as new information emerges.

Yearn.finance Appeals to Arbitrage Traders for $1.4 Million in Recovery Funds After Multisig Error

The decentralized finance system known as Yearn.finance is making a concerted effort to retrieve $1.4 million from arbitrage traders. This predicament came about as a consequence of a multisignature programming mistake that led to a significant depletion of the protocol’s currency.

During the process of converting its yVault LP-yCurve (lp-yCRVv2) tokens, which were acquired from performance fees on vault harvests, into stablecoins on the decentralized exchange CowSwap, Yearn.finance encountered an issue. Inadvertently, this action caused the exchange of the whole treasury balance, which consisted of 3,794,894 lp-yCRVv2 tokens. The consequence of this miscalculation was a decrease of 63% in the value of the liquidity pool from its treasury, in comparison to the spot price of lp-yCRVv2 at the moment.

Yearn.finance has reached out to the community, especially arbitrage traders who may have benefited from the occurrence, in light of the severity of the effect that has been caused. In order to facilitate the recovery of the protocol, the protocol requires that these traders repay a percentage of their winnings. The protocol considers this to be a justified action. This appeal was further underlined by a post on GitHub that was made by a contributor to Yearn. The post highlighted the significance of these tokens to the liquidity of Yearn’s yCRV transactions.

Yearn.finance has taken the effort to send on-chain messages directly to some of the traders, which is an additional step in their plea for the recovery of money. This is in addition to the broader call that they have issued.

The reaction from the community has started to take form, and at least one arbitrager has sent two dollars’ worth of ether, which is around four thousand five hundred dollars, back to Yearn’s treasury. This act of kindness was followed with a note that was posted on the chain, which expressed compassion and acknowledged the gravity of the situation.

An announcement has been made by Yearn.finance on its intention to strengthen its operational and security standards in light of this occurrence. The platform wants to develop output messages that are accessible by humans, isolate protocol-owned liquidity into particular manager contracts, and impose more stringent price effect criteria. The purpose of these procedures is to enhance the protocol’s resilience and dependability by preventing errors of a similar kind from occurring in the future.