Yearn Finance yETH vault has passed its first test as it has remained unaffected by the recent Ethereum dump that happened today.
Yearn Finance was the center of attraction at the beginning of the week after the developers of the project launched a new insurance initiative on the platform.
The developers immediately went a step further to launch high earning vaults for holders of Ethereum which houses Ethereum and Wrapped Ethereum.
Experts have branded the Yearn Finance yETH vault names like ‘black hole for ETH’ because once holders deposit money there, they get massive profits in rewards. Few hours after it was launched, the vault recorded about $100 million deposits, and with the profits accrued per year said to be around 95%, the holders are looking to double their assets in one year.
Yearn Finance yETH vault survives first price decline scare
Ethereum saw its price crash massively as it moved rapidly from around $450 as it currently trades at $390. With the move, Ethereum is barely holding on to the support level after it lost around 14% of its market price.
Experts have faulted Bitcoin’s failure to yet again break through the $12,000 resistance with the digital asset presently trading at $10,100. Yearn Finance was said to have suspended the deposits of DAI, its native token after the price of ETH started to make a downward trend. The Yearn Finance yETH vault deposits were said to have been suspended because the developers were trying to assess the profit and risk.
DeFi loses 8% in total value locked in a day
Consequently, the Yearn Finance yETH vault survived the price plummet of Ethereum and has now witnessed a boost in its prices because of the cheap price that the Ethereum is selling now. Presently, Yearn Finance stats has recorded a 73% profit to about 375,000 ETH that was deposited in the earning round.
The total value locked on DeFi has seen a massive decline for the first time since the decline event that occurred in March. According to statistics by DeFi pulse, the total value locked hit $9.5 billion on September 2. Traders pulling out were one of the major causes as the market presently has a total value locked of $8.6 billion, losing 8% in a space of 30 days.