Yearn Finance is thinking about restructuring …



Yearn Finance thinks about restructuring fees and commissions

  • Yearn Finance plans to improve commissions for strategists

  • Vaults are declining along with liquidity

  • TVL has dropped 60% since early September

International consortium of news organizations developing transparency standards.

DeFi Protocol Yearn Finance has proposed changes to its commissions and rewards system in an attempt to attract more developers and strategists in the face of reduced liquidity on the platform

Yearn Finance has thought about restructuring ...

Yearn Finance is dedicated to finding the best ways to increase profitability through an ever-changing management strategy that saves investors time and costs for independent research.

After a successful and high-profile launch, certain strategies that initially brought four-digit profitability after a while depleted and required changes.

For example, after the launch of yETH Vault on the Yearn.Finance protocol, the annual return on ETH deposits exceeded 100%, but due to a drop in liquidity, it dropped to values ​​that did not even reach 0.5%.

As part of the latest initiative, Yearn complained about too low remuneration and recommended raising them to attract the best developers to the platform..

Source: Twitter

Incentives for Yearn Strategists

Today, the profit of strategists on the platform is 0.5%, but the indicator may not even cover the costs, especially now, when the profitability has collapsed to indecently low levels..

The commission is made up of the withdrawal fee that the liquidity providers pay when leaving the vaults. The project proposal says wages that are too low may push strategists to seek short-term earnings while ignoring security or testing..

V2 vaults that are under development will have multiple asset management strategies and generate more realistic returns. After testing several different fee models, developer Banteg announced that management fees will be superior to current withdrawal fees..

However, it has also been speculated that the 2% management fee will be disadvantageous for liquidity providers if the strategy loses its viability and vaults begin to show signs of deterioration, as happened with yETH Vaults..

In other words, finding a balance between rewarding liquidity providers and strategists is definitely not an easy task..

Locked cost

Since the beginning of September, the total locked value on Yearn Finance has decreased by about 60% and. According to DeFi, Decentralized Finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More Pulse, currently in the order of $ 390 million.

TVL Yearn Finance Chart by DeFi Pulse

Falling profits have led DeFi farmers to look for profitability on more attractive platforms and in Bitcoin, which is now outperforming other digital assets in terms of growth..

Token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More Yearn, called YFI, is down nearly 75% from record highs in mid-September. Today, November 2, YFI traded at $ 10,700, losing 25% of its value in a week.


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