Yearn Finance Bought Back $1 Million YFI In Planned Buyback Plan

Yearn Finance bought back $1 million YFI in the planned buyback plan which aims to bring more value by replacing the staking rewards with buybacks in the future as we can see more in our latest YFI news.

Yearn Finance is a popular decentralized finance protocol on Ethereum which bought back about $1 million of YFI tokens a day ago. The YFI team stated:

 “Yearn has purchased an additional 27.97 YFI for $1.164 million at an average price of $41,621 per YFI.”

Yearn has purchased an additional 27.97 YFI for $1.164 million at an average price of $41,621 per YFI.

These buybacks are done as per YIP-56. More details can be found on the forum:https://t.co/JOdazAzypx pic.twitter.com/3h5B0QGo2M

— yearn.finance (@iearnfinance) April 18, 2021

Yearn Finance bought back about $1 million YFI as a result of a proposal called YIP-56 which aims to bring more value to the ecosystem by using YFI staking rewards to buy back YFI on the open market. Initially, the holders could not vote for new proposals but also stake their tokens and earn more yields from them. However, another system was later proposed that will buy YFI back instead as the proposal stated:

 “Use bought back YFI for contributor rewards and other Yearn initiatives. Retire the YFI governance vault as it no longer has a use, opening up for it to be replaced in the future with a regular vault. Make it possible to participate in Governance even if one’s YFI is being used elsewhere.”

Notably, the price of YFI surged by 14% after the announcement and hit about $57K today from the lows of $44,000 according to CoinGecko. One Twitter user pointed out:

 “So it was YFI that crashed the market to get that fill.”

However, most of the crypto market continues dropping at press time with YFI dropping below the $50K mark. Most of the cryptocurrencies from the top 10 are entering the red zone with BTC and Binance Coin seeing the worst losses of 9% and 15% over the past week.

As reported recently, Crypto company Blockchain.com listed Aave, DOT, and YFI to its wallet and exchange while enabling users to hold, buy and store crypto with more than $620 billion transactions since 2013. With the latest additions, the company wants to build on the growing Defi space as product manager Amadeo Pellicce said that the DeFi momentum is “undeniable.”

According to Kraken, Polkadot raised about $200 million from investors across sales of the DOT cryptocurrency. Aave on the other hand is a decentralized protocol where users participate as depositors and borrowers. YFI is the native token of Yearn Finance which is an aggregator of various lending protocols.