YFI soared 10% within an hour after a V2 vaults teaser was uploaded by the Yearn.finance Twitter handle.
— yearn.finance (@iearnfinance) January 18, 2021
A pseudonymous developer working on the v2 vaults said:
“After 4 months and 8 design iterations, v2 Vaults are finally live! So proud to see this extensive redesign in action! All part of the larger v2 redesign of Yearn. A lot of moving pieces all coming together at last!”
Been trying to break doggy's code for months.
I am surprised he gets things right so fast without making mistakes.
H/T doggy <3 https://t.co/WKqbqsl75a
— Carlos Sessa (@Macarse) January 18, 2021
What are Yearn.finance v2 vaults?
Yearn.finance is essentially an interface to all of DeFi. It allows users to access yield-generating products in the Ethereum ecosystem all in one platform.
Vaults are a popular product within the Yearn.finance ecosystem that deploys various strategies to maximize yield for users that stake their holdings in the vaults.
The official Yearn.finance document reads:
“Vaults employ strategies to automate the best yield farming opportunities available. They were designed so that the community could work together to build new strategies to find the best yield.”
V2 vaults provide Yearn.finance users with higher yield-earning opportunities alongside various improvements to the V1 vaults.
Hsaka, a pseudonymous trader, predicted the price of YFI to rise substantially when v2 vaults are completed, merely 24 hours before the actual announcement. The trader wrote:
“I don’t know how any of this concludes, and am pretty apathetic at this point, but the parabolic rise in shitposting from Andre/Banteg makes me think the work on v2 is all but done and about to be deployed soon.”
What happens to YFI after?
Atop a positive market sentiment, the v2 vault release gave YFI much-needed fresh momentum for a newfound rally.
It has placed YFI close to price discovery, which would occur when the price of YFI reaches a new all-time high.
Currently, the record-high of YFI is at around $44,000 on Binance, which is 10% away from the day’s peak.
Analysts at intotheblock emphasized that the YFI rally has made the cryptocurrency worth more than Bitcoin. There is a massive discrepancy in the market cap, since the supply of Bitcoin is fixed at 21 million, but the price parity is more symbolic than anything else.
82% of YFI holders are “in the money,” according to the analysts, which indicate a generally positive market sentiment amidst a bull cycle. The analysts explained:
“The Yearn flippening happened again. One YFI is now worth 1.05 $BTC. The price @iearnfinance token $YFI increased by 7.49% and briefly touched the $40,000 mark again. On-chain facts: – 82% of the YFI holders are in the money – 21.17k addresses with a balance in YFI (highest).”
The overall strength of the DeFi market has been another clear catalyst for YFI and other DeFi tokens in recent weeks.
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