Decentralized finance [DeFi] protocol Yearn Finance’s governance token YFI is trading over $50k for the primary time in two months, driven by a planned buyback and a rise within the TVL [Total value Locked] in the protocol.
The token has surged by 16% within the past 24 hours to trade near $51,250 USD – the extent last seen on 12th Feb., consistent with data source Messari. Prices have risen by nearly 70% from $29k in the past three weeks.
In line with Alex Svanevik, the CEO of blockchain data firm Nansen, yearn finance’s buyback plan and therefore the explosive growth of the entire value locked into the protocol are powering YFI higher.
“Yearn treasury is going to be conducting a Gnosis auction to get additional YF as a part of our repurchase and Build [BABY] YIP. We’ve earmarked 300k USDC [+0.02%] for this auction to get YFI under $45k,” the protocol tweeted recently on Wednesday.
The buyback & build proposal approved earlier in January aims to bolster the project’s treasury and generate value for all stakeholders.
The TVL [Total Value Locked] within the protocol has nearly doubled to a record $3.024 Bn within the past four weeks, in line with recent data revealed by yearn.science.
“Many people haven’t been conscious of a pointy rise within the TVL because several websites incorrectly reported it not that way back,” Svanevik explained. “The team has started reporting the TLV themselves, and it’s about $3 Bln now.”