Yearn.finance (YFI) has been under pressure over the past few weeks. The leading Ethereum-based : Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch
Yearn.finance Short Closed Amid Strong Move Lower
Over the past week, there’s been much drama on Twitter because on-chain analysts have spotted that a large cryptocurrency investor has been borrowing literally around $80-100 million worth of YFI through Aave.
Aave is a money-market protocol where users can borrow and lend cryptocurrencies; borrowers can do whatever they want with the coins they borrows, as long as they pay it back along with the associated interest. Yearn.finance’s YFI have been deposited on Aave en-masse due to potential yields on lending coins to the protocol.
The vast amount of YFI borrowing has left many to believe that the user behind these transactions is shorting the cryptocurrency.
— Hsaka (@HsakaTrades) October 8, 2020
As noted by crypto trader Hsaka, just today, the user closed their YFI position on Aave, paying back 525 YFI to the protocol’s pool.
Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
DeFi Still in Vogue
The closure of this position comes as analysts and fund managers within the space have asserted that the fundamentals of the DeFi space remain extremely positive.
For one, the number of MetaMask users (active monthly users) recently hit one million for the first time ever. One year ago, this metric was closer to 256,000, meaning a growth of over 300% has taken place in 12 months.
Featured image from Shutterstock Price tags: yfiusd, yfibtc Charts from TradingView.com User That Borrowed $80m Worth of Yearn.finance (YFI) Closes Position