Last month, as the world of DeFi regained it’s footing after the brutal September selloff had ended (and as Bitcoin started its upward trajectory) the creators of Yearn Finance released a manifesto that could prove important for the cryptosphere. Except for stating what Yearn Finance is not (Yearn is not a company, it does not have a board, there is no CEO, there is no team of managers, there is no room for bureaucrats) and what it is, there was a strong sense of innovation.
Taking a look at the $YFI move.. short-term saw some fairly intense chasing, 20% correction put a halt to that behavior, now sitting on some negative feedback/price trying to be pulled in both directions thus the � pic.twitter.com/7tFKSJw4b9— Joseph (@josephcrypto) November 16, 2020
In essence they claimed that for a system to be truly decentralized, there should be rules for those that have a say as to where the project is headed. Therefore, the creators decided that for anyone within the YFI project to be able to vote on an issue, YFI holders are required to be staking their coins for at least three days. In other words, anyone with strong YFI holdings, anyone invested in the future of YFI also gets to say what the network will entail in the future.
A good first step towards creating a truly decentralized system, was the echo from the cryptosphere.
As ripples spread about Yearn’s new heading, investors seem to have found their way back as well. The coin that is still only a few months old, had flippened Bitcoin’s price already over the summer and even though Satoshi Nakamoto’s invention is now worth more and DeFi has gone through a plummeting selloff since, Yearn Finance seems to be in an uptrend once again. At the time of writing it is trading at $17,772 and even the $20k level does not seem so far off now. Andre Cronje’s team just might have created a winner there. As always, time will tell.