DeFi Protocol Yearn Finance's Token Rises 7% Despite Crypto Market Plunge

YFI is up 23% against its bitcoin trading pair over the past 48 hours.

AccessTimeIconMar 3, 2023 at 11:31 a.m. UTC
Updated Mar 3, 2023 at 3:56 p.m. UTC

YFI, the native token of decentralized-finance protocol Yearn Finance, has managed to fend off bearish market forces with a 7% increase in the past 24 hours as investors attempt to capitalize on the platform's upcoming rollout of liquid staking derivatives.

Over the past 48 hours, YFI has surged by 23% against its bitcoin (BTC) trading pair and 19% against tether (USDT), according to Cryptowatch data.

The cause for optimism among YFI traders was last week's announcement that Yearn Finance was moving into liquid staking derivatives. Liquid staking derivatives are a type of token that gives investors exposure to an underlying asset while receiving staking rewards as a part of the Ethereum blockchain's proof-of-stake network.

"Get exposure to a basket of LSDs in one token," Yearn Finance said in a tweet. "Spread your risk. [Receive] boosted yields."

Analysts say a basket of LSDs gives active investors exposure to many different underlying tokens so that they can diversify their risk. Thus, the increased interest in Yearn Finance and its token.

YFI was recently trading at $10,770, while bitcoin and ether (ETH) were down 4.4% and 4.6%, respectively, as fear gripped the crypto market following concerns over crypto bank Silvergate Bank's financial stability.


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Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.