Yearn Ecosystem Token Index (YETI) Launched For Diversified DeFi Portfolios
3 min readA new index token has been launched for the Yearn Finance ecosystem, enabling investors to get broad exposure to all assets on the protocol under one index.
The Yearn Ecosystem Token Index, or YETI, has been unveiled by meta-governance protocol PowerPool as a way to diversify a portfolio with a number of tokens within the Yearn ecosystem.
The PowerPool ecosystem launched its first index called PowerIndex on Nov 30 and has attracted almost $9 million in total value locked (TVL) just nine days later the blog post stated.
YETI is the next offering and it will create an index for Yearn ecosystem tokens: YFI, SUSHI, CREAM, AKRO, COVER, K3PR, CVP, and PICKLE.
The proposed weights of tokens in the new index are YFI 35%, SUSHI 17%, and all other tokens at 8% each.
Real $YETI was spotted today here: https://t.co/k4nC9L3nRW
— Power Pool (@powerpoolcvp) December 9, 2020
Real DeFi Indexes Increasing in Popularity
The announcement added that the YETI index is the first index on the market focused on tokens, united into one ecosystem. The majority of projects presented in it, such as SUSHI, CREAM, COVER, and PICKLE, were recently merged with Yearn Finance. PowerPool has not been merged with the Yearn ecosystem but remains a partner.
The PowerIndex notes that there is a total supply of 1.68 million YETI though it has yet to begin trading on decentralized exchanges. Naturally, Uniswap already has a number of fake YETI tokens circulating.
YETI holders will also be able to vote in all Yearn ecosystem governance proposals using a single token and interface. The token will also be included in new pools and vaults within the ecosystem to generate additional earnings for yield farmers.
DeFi Pulse also launched its own index token called DPI which is comprised of ten DeFi tokens and is currently trading at just over $100.
Yearn Quarterly Revenue Report
Yearn Finance has also just released an informal third-quarter revenue report revealing that the protocol made a net income of $3.8 million between Aug. 20 and Oct. 20.
The report added that 65% of this, or $2.46 million, was paid out to governance stakers. Expenses such as salaries, security, and grants totaled just over $300,000. Gross profit for the period was reported at $4.1 million, including a portion from the Uniswap UNI airdrop which netted Yearn around $69,000.
Most of that revenue came from the 0.3% withdrawal fee from its yVaults, of which the yUSD vault was the most popular. The yETH vault started off promising in September by attracting a lot of collateral but quickly collapsed when it was suspended due to risk issues. Today it earns less than 1%.
Yearn Finance will introduce a new fee structure when its version 2.0 vaults are launched.
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