Yearn.finance report reveals two thirds of revenue comes from yUSD vault

Spread the love

An informal revenue report reveals that Yearn Finance paid 65% of its net revenue to stakers.

The first informal Yearn.finance quarterly report has been released by the community and reveals the DeFi protocol’s revenue is dominated by the yUSD vault.

The report, spanning August 20 to October 20, was created by DeFi community members and has not been officially audited by any accounting firms. It states that net income for the three month period was $3.79 million with the majority of that coming from yVault product offerings.

The yUSD vault was responsible for the lion’s share of revenue with 68% of the total. The yETH vault introduced in September generated $545,000 for the period but it was soon suspended to mitigate risk and losses. That vault remains closed to depositors and is earning less than 1%, however Yearn will be relaunching it during the upcoming release of version 2 vaults.

The majority of the revenue from these vaults has been generated from the 0.3% withdrawal fees, the report noted, stating that a new fee structure will soon be implemented.

“However, yVaults will implement a new fee structure – 2% AUM/20% performance fee – for upcoming 2.0 yVaults.”

Earnings on the platform are expected to be considerably higher under this new fee structure.

RECOMMENDED READ:  Bitcoin Bullish Flag Breakout Could Pump BTC, But $9,500 Holds The Key

September saw a surge in revenue as yield farming gathered momentum but it dropped off in October as markets began to contract. Of the net revenue figure, $2.46 million or 65% was paid out to governance stakers.

Gross profit for the period was reported at $4.14 million with the protocol even making a little money from the Uniswap UNI airdrop which netted it $69,000.

The report shows the majority of the platform’s operating expenses totalling $306,000 are administrative salaries and security, with a breakdown of roughly 56% and 27% respectively. Several audits and bug bounties were paid out of the expenses in addition to a number of grants to ecosystem contributors.

Yearn Finance, which has recently absorbed a number of smaller DeFi protocols, stated that it holds a considerable amount of ETH, YFI, and UNI valued at an estimated $581,000 on October 20.

Responses to the report’s posting were largely positive and in support of its transparency.

At the time of writing, Yearn Finance’s native token, YFI, was trading flat over the past 24 hours at $25,300. On the week YFI has lost 17% as crypto markets correct from their recent highs.

 162 Interactions,  4 today

READ ALSO:
The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for Read more

Finance authorities dismiss cryptocurrencies, in the wake of Coinbase’s IPO celebrations

Economic gatekeepers are taking a closer look at blockchain as mainstream coverage of the Bitcoin bubble and Coinbase listing intensifies. Read more

Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

RECOMMENDED READ:  Litecoin Price Movement Analysis for 3rd April, 2021
Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Leave a Reply

Contact Us