Yearn Finance Founder Hints at Major L2 Platform Upgrade

Yearn Finance has come leaps and bounds since its launch and founder Andre Cronje, who has become a bit of a DeFi celebrity, has revealed that the new system is way more complex;

The new yearn system is probably the most complex to date. It incorporates @synthetix_io @AaveAave @chainlink @iearnfinance and will be running on L1/L2

Trying to decide if we should do whitepaper-esque writeups to explain before launch, or just launch and surprise everyone?

— Andre Cronje (@AndreCronjeTech) September 23, 2020

DeFi Commentators Left Guessing

Revealing no details in his teaser poll, Cronje simply asked whether they should release some information before launch or just roll the update out to surprise everyone. This was the more popular choice of the 5,350 respondents at the time. Some suggested that a heads up would be good to prevent the influencers and whales from getting the jump on the rest, as has become a contentious norm in the ecosystem lately. It’s likely that the new Yearn v3 will further incorporate other DeFi protocols in order to expand on its current offerings which do the leg work for investors, saving them time and money. A DeFi farmer who goes by the moniker ‘DeFiGod’ (@DeFiGod1), suggested a bigger mashup of existing protocols and assets:

“Sounds like synthetic assets mint/burn swaps using Chainlink oracles to determine the prices, AAVE to use funding for minting, and SNX contracts/ethos for overall architecture.”

More importantly, Cronje stated that it will be running on both Layer 1 and Layer 2 which will be a relief for users that have been stung by skyrocketing gas fees recently. Layer 2 scaling should help to enable thousands of transactions per second and a major reduction in gas fees. In addition to Yearn, DeFi platforms Aave, Uniswap, and Synthetix are all close to rolling out their own L2 solution upgrades.

YFI Price Update

Yearn Finance is currently ranked sixth in the DeFi TVL charts with around $817 million in locked collateral according to DeFi Pulse. Its native token YFI has not escaped the clutches of the bears in this week’s massive crypto market selloff. Over the past 12 hours or so YFI has dumped 15% in a fall back to $22,500.

The slip is in line with an overall market decline which has resulted in the loss of $10 billion from total market capitalization over the past 24 hours.