An altcoin that helps holders earn yields is lapping the field as the crypto markets try to recover from a difficult month.
Yearn.Finance (YFI) is a decentralized finance (DeFi) protocol that offers lending and trading services so users can optimize their crypto asset earnings.
[adinserter block="1"]The YFI token’s price has been on fire over the past week, more than doubling from $18,867 on December 15th to a high of $39,353 on December 20th.
The altcoin first got a boost last week as word spread that Yearn had gone on a major shopping spree buying back its own token.
Yearn tweeted that it had purchased over $7.5 million worth of YFI, adding that its treasury was armed with $45 million with the intention of buying more tokens in the future.
Yearn’s price continues to surge as the community now considers a change in YFI’s tokenomics.
At the top of the list is the suggestion that token holders active in Yearn governance be rewarded with a portion of buybacks.
Yearn says in a tweet,
“Tokenomics, rewarding YFI holders with the… token buybacks, diluting paper hands for the benefit of the blue-pilled diamond hands.”
Next is a four-stage proposal involving a combination of rewards, locking tokens in vaults for set periods of time, and credit for performing useful work.
The process is outlined in a series of illustrated tweets.
“Step 1: xYFI. Stake in the xYFI vault, earn bought back YFI from the treasury. Simple as that.”
“Step 2: veYFI. Vote-lock YFI, with decay and time extension. Max-lock and earn disproportionate rewards compared to those who lock for a shorter duration. Early exit any time but pay a penalty to the other stakers.”
“Step 3: Vault gauges. Stake your yVault token in a gauge, earn YFI rewards, boosted by how much veYFI you have staked. Vote on which vaults should get allocated rewards. Pay a penalty to other stakers if you don’t have a strong enough lock.”
Step four involves engaging in “useful work,” which could include “configuring vault parameters, setting fees, providing insurance.”
At time of writing, YFI is down 9.25% on the day and trading for $34,553.
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