The current boom in the decentralized finance (DeFi) market may not be dying down anytime soon, as more new protocols and projects are being announced, catching the attention of the crypto traders/investors even more. Especially in yield farming, there have been quite some bullish statements around one of the new products, Yearn Finance yETH, which looks promising for Ether (ETH) holders.
Yearn Finance yETH promises a higher interest
Announced on Monday, yETH is a new yield farming product launched by Yearn Finance. The DeFi protocol claimed that the new product would enable Ether holders to earn the best available yield on their coins by staking their Ether holdings. The Yearn Finance yETH is said to be a “vault,” meaning that the yields will be earned together by users.
Reports noted that the development of Yearn Finance yETH was agreed upon and voted by the community members. Several statements from industry analysts about yETH are quite optimistic and many expect the product would attract more Ethereum tokens. This means that more Ethers are still going to be locked up on the DeFi protocols.
Alex Saunders, the founder of Nugget News, comments about the Yearn Finance yETH reads:
“Anyone who owns ETH can earn the best yield automatically by HODLing yETH.” He added that “It could also mean other protocols find it harder to compete with Ethereum when offering staking rewards.’
Expect more ETH being locked up in DeFi
As more people continually seek to earn from the DeFi space via their cryptocurrency holdings, the advent of Yearn Finance yETH with the ‘high yield’ tag is probably going to result in the locking of more Ethers on the product. While commenting on this, a trader noted that:
“The sheer amount of eth that is going to get locked up in this @iearnfinance yETH vault I feel will be astronomical, not only bullish for $yfi but the juggernaut $eth itself.”
However, some people have bad feelings that the product might cause a supply-side liquidity shock for Ethereum. Set Protocol’s Anthony Sassano, explained:
“The yETH vault from @iearnfinance is going to be a black hole for ETH. That is, once ETH goes in, it is going to be very hard for it to come out, he explained.”