- MakerDAO will deploy $100M worth of its assets on Yearn Finance.
- Yearn Finance`s token YFI has rallied following this announcement.
- Over 71% of voters in Maker Governance supported the concept, while 28% did not.
At the beginning of November the previous year, Maker presented the MIP92, in which the decentralized finance (DeFi) protocol advised onboarding $100 million worth of Maker’s assets onto Yearn Finance. The Peg Stability Module (PSM) of Maker, which trades users’ collateral for Maker’s stablecoin DAI, would be the source of the hundred million dollar infusion.
According to the plan, the funds would be placed in a non-custodial, customised Yearn vault, earning an annual percentage yield (APY) of 2.16% for Maker (annual percentage yield).
Justifying this move, Maker stated in its proposal,
The recent collapse of centralized entities such as Celsius, BlockFi, and FTX, among others, has made painfully clear the importance of transparency when depositing funds to generate yield—something that DeFi, and specifically Yearn, are well-equipped to provide.
Over 71% of voters in Maker Governance supported the concept, while 28% did not. This resulted in sentiments that were somewhat divided along ideological lines regarding the plan. On the other hand, the project is scheduled for a second executive vote on January 26, after which the Governance Facilitators will affirm that it has been approved.
The price of Yearn Finance responded well to the news by increasing by around 8.30% in twenty-four hours. This was the second-highest single-day jump over the previous thirty days.
Consequently, this propelled the cryptocurrency’s recovery to approximately 52%, which brought YFI’s trading price up to $7931 when this article was written according to Coinmarketcap data. YFI is also about to break through the barrier as it is now threatening to do so at the $7971 resistance level.
Read Also :
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
