{"id":275386,"date":"2021-06-15T21:43:36","date_gmt":"2021-06-15T18:43:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/as-yearn-finances-yield-vaults-grow-crop-projects-define-boundaries\/"},"modified":"2021-06-15T21:43:36","modified_gmt":"2021-06-15T18:43:36","slug":"as-yearn-finances-yield-vaults-grow-crop-projects-define-boundaries","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/as-yearn-finances-yield-vaults-grow-crop-projects-define-boundaries\/","title":{"rendered":"# As Yearn.Finance\u2019s yield vaults grow, \u2018crop\u2019 projects define boundaries"},"content":{"rendered":"<p>&#8220;<strong># As Yearn.Finance\u2019s yield vaults grow, \u2018crop\u2019 projects define boundaries <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvYmM3MTk2ZWEtMTVhNS00NzNjLTk1YmYtNWU3ZDU2YjVlYmM3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>With millions and even billions of dollars at stake, industrial-scale yield farming is leading to pockets of resistance as some projects refuse to be left with the chaff.\u00a0<\/p>\n<p>In the past week, team members from no-loss lottery project PoolTogether and exchange liquidity pool provider Curve Finance have proposed ways to reduce the load Yearn.Finance strategies place on their protocols and governance tokens. <\/p>\n<p>In a Tweet on Sunday, PoolTogether co-founder Leighton Cusak noted that Yearn has become the primary beneficiary of many of the protocol\u2019s DAI lotteries, as Yearn controls 57% of all DAI funds ($27 million of the $47 million in the pool at the time of writing) and therefore has a disproportionate chance to win. <\/p>\n<p>\u201cAt this scale, it becomes problematic as they monopolize the chances to win and marginalize the core value prop of the protocol,\u201d Cusak wrote on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Wanted to provide a bit of context on Yearn  PoolTogether since this tweet is getting some traction. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/bpCUroz8NS\">https:\/\/t.co\/bpCUroz8NS<\/a><\/p>\n<p>\u2014 Leighton Cusack (@lay2000lbs) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/lay2000lbs\/status\/1403929395136507906?ref_src=twsrc%5Etfw\">June 13, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Likewise, in a governance proposal today \u201cCharlie,\u201d a representative of the Curve core team, put forth a vote to remove the CRV benefits given to the alUSD pool. alUSD is a stablecoin from Alchemix, a project which issues loans based on future yield from deposits into Yearn vaults; Yearn vaults, in turn, use stablecoins and other assets to farm Curve\u2019s CRV token.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">alUSD <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arently is linked to dumping CRV from inflation schedule, so it currently causes more dumping of CRV than a normal pool would. There is a possibility to remove CRV inflation for this pool via a governance vote, hence the proposal:<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/KGt2E9jmXi\">https:\/\/t.co\/KGt2E9jmXi<\/a><\/p>\n<p>\u2014 Curve Finance (@CurveFinance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CurveFinance\/status\/1404836595254112267?ref_src=twsrc%5Etfw\">June 15, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Both instances of projects bucking under Yearn\u2019s weight led to speculation on social media that there may be personal hostilities motivating what looks like a protocol-level sharecropper\u2019s revolt (Alchemix opted to use Curve competitor Saddle for a new synthetic ETH pool); that Yearn may be overzealous with its farm-and-dump strategies; and that there could be \u201cgovernance wars\u201d creating friction in what should be an open ecosystem.\u00a0<\/p>\n<p>Likening the dynamic to a \u201cwar\u201d appears to be overblown, however. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">With the new governance wars kicking off between <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CurveFinance?ref_src=twsrc%5Etfw\">@CurveFinance<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AlchemixFi?ref_src=twsrc%5Etfw\">@AlchemixFi<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iearnfinance?ref_src=twsrc%5Etfw\">@iearnfinance<\/a>, I&#8217;m expecting to see some huge strides in governance mechanisms.<\/p>\n<p>Curious who&#8217;ll be the first to implement tradfi concepts like dual class voting tokens and staggered DAO multisigs.<\/p>\n<p>\u2014 Collins Belton (@collins_belton) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/collins_belton\/status\/1404862038015320073?ref_src=twsrc%5Etfw\">June 15, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In an interview with Cointelegraph, Cusack said that PoolTogether has already agreed to onboard Yearn as an interest provider for the lotteries, and in turn Yearn will cease acting as a whale flopping in their pools.\u00a0<\/p>\n<p>\u201cWe have recently completed an integration with yearn and it is being audited. This means our prizes pools can use Yearn for yield. This is better as it will yield a higher APR. It also means that Yearn won&#8217;t be able to deposit into PoolTogether as that would create a risky recursive loop,\u201d he said. <\/p>\n<p>He also noted that \u201cYearn keeps 10% of all the POOL tokens it accrues\u201d and that POOL emissions were cut 50% late last month. <\/p>\n<p>\u201cI&#8217;ve found them to be very helpful and willing to make changes to reach a more optimum outcome.They ultimately understand that our success brings more success to them,\u201d Cusak added of the Yearn team. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/p>\n<p>Likewise, Charlie of Curve noted that the governance proposal is an effort to mitigate a recursive CRV emission structure, similar to what PoolTogether is looking to achieve with their new arrangement. <\/p>\n<p>\u201cAlchemix and alUSD are awesome products which partly make their yield by selling CRV which is why the community raised the point [they] shouldn&#8217;t receive CRV on top (the double dipping). It is not a hostile proposal towards Alchemix, just a way to see if the rest of the Curve DAO feels the same way about it and if they indeed do feel like it&#8217;s abusing the system. It has nothing to do with the selling,\u201d he said. <\/p>\n<p>While the battle between farmer and crops for the time appears to have been staved off, Cusak did say that there remains a fundamental conflict that could eventually bubble into a governance fight. <\/p>\n<blockquote><p>\u201cThere is inherently a tension between protocols wanting deposits to drive growth and those depositors wanting to maximize yield be selling the protocol token.\u201d<\/p><\/blockquote>\n<p>While the DeFi ecosystem prides itself on elegant economic designs and logical systems, when it comes to governance hot heads do sometimes lead to conflicts. Earlier in the year, insurance\/coverage protocol Cover and Yearn.Finance announced a cessation of a merger that some parties likened to a divorce.\u00a0<\/p>\n<p>Multiple Yearn reps did not respond by the time of publication.\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/as-yearn-finance-s-yield-vaults-grow-crop-projects-define-boundaries\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# As Yearn.Finance\u2019s yield vaults grow, \u2018crop\u2019 projects define boundaries &#8221; With millions and even billions of dollars at stake, industrial-scale yield farming is leading to pockets of resistance as some projects refuse to be left with the chaff.\u00a0 In the past week, team members from no-loss lottery project PoolTogether and exchange liquidity pool provider&#8230;<\/p>\n","protected":false},"author":1,"featured_media":275387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvYmM3MTk2ZWEtMTVhNS00NzNjLTk1YmYtNWU3ZDU2YjVlYmM3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75186,74868,74891,75493],"class_list":["post-275386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-dao","tag-defi","tag-ethereum","tag-stablecoin"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/275386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=275386"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/275386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/275387"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=275386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=275386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=275386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}