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99.8% Approves New Proposal, Yearn Introduces Buyback Mechanism, YFI Touches $24,880 Once

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99.8% Approves New Proposal, Yearn Introduces Buyback Mechanism, YFI Touches $24,880 Once

Bitcoin surged after breaking $17,000 on the evening of the 17th, reaching a high of $17,955 today, breaking its all-time high market value. However, in the past 24 hours, Yearn Finance (YFI) outperformed Bitcoin at one point, with its price reaching $21,695, returning to October levels.

Surging 213% from the Low

Driven by Bitcoin, YFI had broken through the $20,000 mark on the morning of the 17th and surged from $21,882 to $24,880 in just one hour on the morning of the 18th around 07:00, marking an increase of over 200% since hitting a low on November 5.

In addition to Bitcoin's influence on the overall market, the crypto community has been paying close attention to who the major holders of YFI are, especially after the token's collapse from its peak. According to a report by analytics firm Santiment on the 12th, the recovery of YFI is linked to the entry of the crypto hedge fund PolyChain Capital.

YFI Major Holders Ranking (Source: Santiment)

The address ranked ninth (now tenth) in the image 0xbcd5000f5c522856e710c5d274bb672b2f2eefbf belongs to PolyChain Capital, which recently acquired nearly 2% of the total supply of YFI tokens. Furthermore, it seems that the approval of a proposal by the governance team has also contributed to the token's future performance.

YIP-54 Proposal Approved

As shown on the off-chain governance platform snapshot, the Yearn Improvement Proposal 54 (YIP-54) has passed with a 99.8% majority vote, allowing community members to participate in the assessment of expenses related to hackathons, security audits, development grants, bug bounties, and more on a quarterly basis.

YIP-54 mainly confirms that the budget from the previous proposal YIP-41 will officially be converted into operational funds, and the community will decide whether the operational funds should be used for YFI buybacks or other assets. Angel investor Jason Choi stated on Twitter:

Over the past 4 months, Yearn's vaults have generated approximately $3.4 million in revenue, part of which can be used for actual buybacks instead of just burning a portion of the total supply.

As of now, Yearn's vaults have seen improvements in annual yield and locked funds. According to Defi Pulse data, the total locked value in Yearn has also increased by approximately 11.8% in the past 24 hours, but YFI still has a significant gap to reach its historical high of $44,000.