Yearn Finance’s governance token YFI plunged Wednesday as traders secured their short-term profits from its supersonic rally.
The YFI/USD exchange rate dropped 4.34 percent to $22,915 after forming a 47-day high near $25,000. The descent also came as a part of a downside correction that typically appears after every bullish move in an uptrend. YFI later found support near $20,000, reflecting traders’ inclination to continue the bull run.
Yearn Finance Upgrade
A stronger buying demand for YFI surfaced after its parent protocol, Yearn Finance, implemented a new improvement proposal. As NewsBTC covered earlier, the YIP-54 upgrade has introduced a so-called “Operations Fund” to “buy back YFI or other assets at its discretion.”
In the past 4 months, Yearn vaults earned ~$3.4M in fees.
Part of this may now be used to conduct actual buybacks (not just burning supply) to reward contributors 👀https://t.co/DbyLTRJADC
— Jason Choi (@mrjasonchoi) November 15, 2020