YFI - Remember this Defi darling?

Assets covered: YFI

Metrics used: Price, TVL, Dev Activity, Supply on Exchanges

Charts: https://app.santiment.net/s/Sdq6i--a

YFI lifecycle - Sanbase


Ah... YFI. Good ol YFI. Unfortunately, what was once a DeFi darling is now abandoned by the market and have gone -90.7% from the top (just over 1 year ago).

During the Defi 1.0 season, it was one of the top coins and with each Andre Cronje tweet, it moved heaps, making a lot money for early YFI yield farmers.

And there was the a when YFI rode the meme trend by creating WOOFY token, marking the top of the cycle.

Then came DeFi 2.0

YFI vs DeFi 2.0 - Sanbase

While YFI did enjoy some form of rally, it was clear that money flowed into newer, shinier protocols like OHM, TIME, SPELL, CVX during Defi 2.0 season.

When Defi 2.0 popped, it fell together with everything else. It didn't help with the macro environment (FED rate hikes, inflation, etc) being rather challenging for pretty much all markets out there (stocks, crypto).

It's pretty crazy to see that YFI's price a full round trip back to genesis prices.

Total Value Locked

Defi TVL - Defipulse

A good amount of money has evaporated from the Defi ecosystem, going from $107.50B to $53.75B. Whether it's just prices of tokens tanking or folks pulling out USD liquidity and exiting altogether.

Needless to say, TVL looks like crap today.

This, naturally flows on to YFI as well:

YFI TVL - Sanbase

Going from a TVL of 6.91B to 1.16B - that's....quite a drop!

They recently released their quarterly report for Q4 2021 , reporting that the protocol has generated $44.6M EBITDA for FY21, with Q2 2021 being the most profitable quarter.

Given the bearish climate since, it'll be interesting to see the figures for Q1 2022.

Dev Activity

YFI dev activity - Sanbase

Looking at YFI's price, you'd think that the project is dead. Well, far from it, they actually do have decent dev activity going on for the past year, regardless of price action.

Perhaps the most anticipated update is the introduction of veYFI to the tokenomics. But it seems there's little information about when it's going to be released, so much so that some users are venting their frustration.

where's veYFI - twitter

banteg enters the room. *mic drop

banteg's reply on veYFI - twitter

It's likely the dev activity we are seeing corresponds to them building yearnV3 and the much awaited veYFI model.

But at this point, market just doesn't care. Risk off, remains....well...risk off for now.

Supply on exchanges

YFI Supply on exchanges - Sanbase

YFI's supply on exchanges saw a huge spike since the start of May. Looks like some folks were eager to just offload whatever they can and it clearly reflects on the price itself - no surprises there!

Thanks for reading!

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