- Yearn Finance price recovery, unlike most of the cryptocurrencies in the market, has been very slow, rising by merely 51% in over three weeks.
- MakerDAO proposed deploying USDC worth $100 million from its reserves, where it is set to earn a 2.16% yield annually.
- MakerDAO is still the second biggest DeFi protocol in the world despite losing 63% of its total locked value in the last 13 months.
MakerDAO has been attempting to generate yield for the last couple of months now, and the collapse of FTX ended up being the perfect motivator to focus on the same. Also justifying transparency in doing so, Maker proposed the Maker Improvement Proposal (MIP) 92.
MakerDAO joins hands with Yearn Finance
Maker, earlier last November, proposed the MIP92, wherein the decentralized finance (DeFi) protocol suggested onboarding $100 million worth of its assets in USD Coin onto Yearn Finance. The $100 million would come from its Peg Stability Module (PSM) that swaps users’ collateral with Maker’s stablecoin DAI.
As per the proposal, the money would be deployed into a bespoke non-custodial Yearn vault which will provide Maker a 2.16% APY (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.”
The proposal was met with slightly mixed opinions from Maker Governance, as over 71% of voters approved the plan while others did not. However, the proposal is set to go through another executive vote, where the Governance Facilitators will confirm its passage on January 26.
Yearn Finance price enjoys the greens
Yearn Finance price reacted positively to the development as the altcoin shot up by nearly 8.55% in the span of 24 hours, marking the second-highest single-day spike in over a month. This pushed the cryptocurrency’s recovery to almost 52%, bringing YFI to trade at $7712 at the time of writing.
Teetering at the resistance level at $7712, YFI is set to breach the barrier. Flipping the same into a support floor would allow Yearn Finance price to bounce off of it and rally toward $8559, marking a two-month high.
YFI/USD 8-hour chart
However, a bullish narrative supporting a 10% rise could also meet with selling for profit, which would bring the price down. If YFI loses its support level at $6892, it could continue declining to tag the support level at $6516. A daily close below the same would invalidate the bullish thesis, resulting in the price falling to further lows of $6086.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback
Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead.
GIGA investor loses $6M to phishing scam via fake Zoom link
On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show
Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.
BNB: Bullish technical pattern validated, eyes all-time high
Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.