YFI announces new loan protocol and listing on Coinbase Pro

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Last Updated on 11 September 2020 by CryptoTips.eu

Yearn.finance (YFI) is about to launch a new governance token-free loan protocol and Coinbase Pro will soon support YFI trading on its platform.

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A new loan protocol

Yearn.finance, the decentralized finance (DeFi) token, has announced a new loan protocol called StableCredit. Unlike many DeFi projects, the protocol does not have a governance function. DeFi projects use governance tokens as a way to redistribute control over the protocols. Governance tokens, although intended to give voting rights, have become properties in their own right.

How does the new protocol work? In summary, users will be able to use the StableCredit USD as collateral to borrow other assets in a so-called market-maker environment.

It is too early to know what financial value StableCredit will bring. According to Andre Cronje, founder of YFI, the user interface will be ready by the end of September.

Andre Cronje himself said that the YFI token was designed to “have zero financial value”. He also described the recent events related to DeFi as “degenerate finance”. However, he acknowledged the success of his project:

Yearn.finance has gained popularity thanks to the variety of its lending protocols, which have recently attracted investors by promising high returns and low transaction fees through pooling.

Listing by Coinbase Pro

Starting September 14, Coinbase Pro will add the yearn.finance (YFI) token to its exchange. The addition of the token by the American exchange occurs 1 month after the listing by Binance.

Following the announcement of its listing on Coinbase, YFI increased from  21,252 dollars to 35,100 dollars, an increase of nearly 65%  in 48 hours. The DeFi token is trading at $32,784 at the time of writing.

YFI has been one of the main beneficiaries of the recent DeFi bubble, gaining over 800% during the month of August. The token even hit $39,900 on August 31.

Reuben Bramanathan, former Coinbase attorney and product manager, says the listing is important news for YFI as it means the US exchange does not consider yearn.finance a security token.