Yearn.Finance (CCC:YFI-USD) is taking the world by storm today. The ecosystem’s YFI token is flying, thanks to a bullish piece of YFI crypto news. An innovative, crypto-centric take on buybacks is allowing the network to repossess and dispose of assets. It seems investors are quite excited about a constricted circulation of the currency.
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Yearn is a suite of DeFi products based on the Ethereum (CCC:ETH-USD) chain. It hosts a number of different income-generating tools, such as yield farming or lending. It also provides blockchain insurance, an increasingly popular offering.
The Yearn network is primarily used for its vault and earn features. Vault allows users to pool their assets into one place; the network then generates yield on these assets by combing the market for arbitrage opportunities. The process is automatic, and it reduces the costs of transactions to the individual by splitting fees across all users in a given pool. The earn function is a more straightforward lending tool, with the network moving assets across different yield-generating protocols to maximize profits for lenders.
One of the most appealing aspects of Yield is the fact that the protocol is entirely decentralized; there is no Yearn headquarters, nor a team of leaders or developers claiming ownership over the network. Rather, all users help make decisions for the network through an internal decentralized autonomous organization (DAO).
YFI Crypto News Sends Token Skyrocketing
Yearn is a well-known player in the DeFi space, but some sudden YFI crypto news today is sending the token on a gaining spree. The network is beginning its YFI buyback, where it is aggressively repurchased YFI from users.
YFI already has quite a low supply, with only about 37,000 tokens in circulation. As such, these tokens catch quite a high price, regularly trading above $20,000 apiece. But in a tweet yesterday, Yearn announced it had already bought back over $7 million in YFI tokens.
Yearn has purchased $7,526,343 worth of YFI from the open market. We got 282.4 YFI (0.77% of total supply) at an average price of $26,651. More YFI has been bought back in the past month than in the prior year.
— yearn.finance (@iearnfinance) December 16, 2021
This move is a push from the network to improve its tokenomics. Indeed, a community vote from October saw an interest in restructuring the network; the buyback is an acknowledgement of the community’s desires, as well as a first step toward these improvements.
As this buyback continues, YFI is seeing massive gains. The token is up over 25% on the news, seeing prices of around $28,000. Trading volume is also booming. $815 million worth of YFI is trading hands today, a three-fold increase on yesterday’s volume.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.