Yearn Finance could launch a major update to the protocol.
Layer 2 scaling solutions would be one of the new features.
The price of YFI tokens fell 15% during a market downturn
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The popular DeFi Yearn Finance aggregator has been one of the most active in terms of product development and upgrades in recent months. Lately, its founder hinted that an even bigger update was underway.
Yearn Finance has made giant strides since its launch. Its founder Andre Cronje, who has become something of a DeFi celebrity, revealed that the new system is much more complex.
The new Yearn system is probably the most complex to date. It integrates @synthetix_io @AaveAave @chainlink @iearnfinance and will work on L1 / L2
We’re trying to decide whether we should write an explanatory white booklet style before launch, or just kick in and surprise everyone?
Observers left in doubt by Andre Cronje
Not revealing any details in his teaser poll, Mr Cronje simply asked if they should post any information ahead of launch or just roll out the update to surprise everyone. This choice was then the most popular among the 5,350 respondents.
Some have suggested that a warning would help prevent influencers and whales from taking precedence over the rest, which has become a controversial standard in the ecosystem in recent times.
It is likely that the new Yearn v3 will incorporate more of other DeFi protocols in order to expand its current offerings which do the job for investors, saving them time and money.
A DeFi operator nicknamed “DeFiGod” (@ DeFiGod1), suggested a greater mix of existing protocols and assets:
It looks like synthetic issued / burnt asset swaps using Chainlink oracles to determine prices, AAVE will use these funds for coinage, and SNX / ethos contracts for the overall architecture.
More importantly, Andre Cronje has said that it will run on both Layer 1 and Layer 2, which will provide relief to users who have been affected by the recent spike in gas costs.
Scaling up to layer 2 is expected to enable thousands of transactions per second and a significant reduction in gas costs.
In addition to Yearn, DeFi Aave, Uniswap and Synthetix platforms are all set to roll out their own L2 solution upgrades.
Current YFI price
Yearn Finance is currently ranked sixth on the DeFi TVL charts with around $ 817 million in collateral locked according to DeFi Pulse .
Its native YFI token did not escape the clutches of bears during the cryptocurrency market’s massive sell-off this week . In the past 12 hours or so, YFI has suffered a 15% drop back to $ 22,500.
This slide is in line with an overall market decline that resulted in a loss of $ 10 billion in total market cap over the past 24 hours.