Crypto enthusiasts revealed an informal quarterly report regarding the revenue stream of Yearn Finance, which concludes that the yUSD vaults generate the most profit.
Based on the period between August and October, the report reveals a staggering 68% revenue share for the aforementioned vault. Community members can find the quarterly report on a GitHub page shared by the Yearn Finance team on December 9.
Although the report is not officially audited or approved by the Yearn Finance team, it derives its data from three main addresses, including the treasury vault, multi-sig wallet, and the governance staking wallet.
During the period of three months, spanning between August 20 and October 20, Yearn Finance collected $3.79 million in revenue. Year earned most of its revenue from the yVaults.
On that account, the yUSD vault brought the most profit as it accounts for 68% of the total earnings. A significant portion of the vault profits is generated from the 0.3% withdrawal fees. However, a future update may change that in the future as Yearn plans to implement a new fee structure.
While a final decision has not been made yet, the core developers plan to set a 2% AUM/20% performance fee. Under this system, Yearn would generate a far larger stream of revenue.
While users may believe that the future fees are too high, we note that the team has implemented a mechanism through which it reinvests into the protocol.
The quarterly report showcases that the yETH vault, which arrived in September, collected up to $545,000. But as a result of concerns around risks, the team had to close it. We also see that the protocol’s expenses only amount to $306,000. These expenses include administrative salaries and security.
Will the recent mergers improve Yearn Finance’s next quarterly report?
In the past few weeks, Yearn Finance successfully completed several mergers with leading DeFi protocols. The goals of these mergers mainly include heightening synergies between teams and improving TVLs. But most importantly, the sets of partnerships drastically improve the number of correlated vaults on the Yearn Finance protocol.
As such, it is perfectly understandable to expect a drastic rise in the usage of Yearn Vaults which so far generate the most profit. Combined with the next iteration of vaults and their increased fees, it is possible to conclude that the protocol will significantly improve its revenue stream.
As Defiye previously reported, these vaults will also bring changes to the distributions of revenue. From now on, Yearn Finance will reward active community members and contributors far more. The core developers also plan to use the money to reinvest in the protocol and perform regular YFI buybacks.
With that in mind, we expect to begin an entirely new phase in which it dominates the DeFi scene. At the time of writing, Yearn Finance is ranked 11th place on DeFi Pulse and hosts only $443 million in collateralized assets.
With the incoming changes, we expect Yearn to at least reach its old ATH $960 million TVL in the next few months. Will alt-season support the so-called blue-chip in its quest?