- YFI crypto price retreated modestly after Yearn Finance started new changes.
- The new strategy will see anyone create investing vaults in the network.
Yearn Finance, a well-known player in decentralized exchange (DeFi) has started the year on an upbeat tone. YFI price rose to a high of $5,974 on Monday, the highest point since December 16. At its peak this week, the token was up by more than 20% from the lowest level in December.
Yearn Finance new changes
Yearn Finance is a decentralized finance protocol that makes it possible for people to earn returns by depositing tokens in their vaults. It was once one of the top DeFi protocols in the industry until internal scandals saw it lose its market share. A hard fork of the network led to the launch of DFI.Money (YFII)
In a press release, Yearn Finance said that it will now let users develop their own vaults to accrue their own yields. This is a major change since Yearn has for long depended on vaults created by the platform’s contributors and developers. A vault is an on-chain product that lets users make money through various strategies.
Yearn will then charge a hefty fee of 10% for users who opt to create their own vaults. The developers hope that the new feature will increase the level of activity in the network. Also, they hope that it will increase the network revenue, which is then distributed to token holders. Yearn Finance deposits are only done using Curve Finance, a network that made $100k in fees in the past 24 hours.
Yearn Finance exists in Ethereum, Fantom, Arbitrum, and Optimism. It has a total value locked (TVL) of more than $383 million. At its peak, the network had a TVL of over $6.7 billion, which made it one of the top 5 biggest coins.
The developers are now working on a new strategy that will increase its utility and make it more decentralized.
YFI price prediction
The 4H chart shows that the YFI crypto price has made a strong comeback in the past few days. This rebound has coincided with a period when other cryptocurrency prices have surged. Along the way, the token has moved above the 25-day and 50-day moving averages . It has also risen above the 23.6% Fibonacci Retracement level.
A closer look shows that the token has formed what looks like an inverted head and shoulders pattern. Therefore, while it is too early to tell, we can’t rule out a situation where the token resumes its bullish trend.
