The newly released Bancor liquidity mining program will now support Yearn Finance (YFI) following a community’s successful governance approval.
Apart from BNT rewards, yield farmers will now also have impermanent loss insurance when providing YFI liquidity on Bancor. Yearn Finance announced the news in a tweet on December 3.
The Head of Community at Bancor published a new post on the governance forum titled ‘Add Liquidity Mining reward for YFI.’ Noting that the new liquidity program supports only eight LPs, the team member shared that the community could vote for 6 new tokens.
Users had a chance to vote for YFI, REN, EWT, ENJ, RSR, and AAVE. The voting process took place on Discord and lasted for 72 hours, which concluded with Yearn Finance (YFI) winning.
Yearn investors can now earn not only YFI rewards but BNT rewards as well when providing liquidity on Bancor. At the time of the announcement, Yearn FInance noted that the YFI pool had an APY of 218%.
On November 16, the liquidity protocol decided to launch a new incentive for users who enjoy yield farming. Bancor announced the official Bancor Liquidity Mining Program which brings many new rewards. At launch, the program only supported 8 major cryptocurrencies, including ETH, WBTC, USDT, USDC, DAI, LINK, OCEAN, and renBTC.
According to Bancor, the new program was created in order to attract liquidity to the protocol. The team has succeeded in achieving this goal as the network experienced gigantic growth. In less than a month, Bancor rose from $20 million to almost $90 million in collateralized assets.
We have also seen the native BNT token drastically rising in value, increasing from $0.73 up to $1.15 at one point. At the time of writing, Bancor is positioned as the 17th best project on the DeFi Pulse leaderboard.
Apart from Bancor, Yearn Finance (YFI) appears on 5 other protocols
YFI winning the recent community vote only shows how popular Andre Cronje’s project is. In recent weeks, Yearn Finance has progressed far, merging and partnering with numerous DeFi protocols. In total, Yearn Finance partnered with five projects which include Cover Protocol, SushiSwap, Akropolis, Cream Finance, and Pickle Finance.
So far, the effort that Yearn Finance took with partnering with other teams eerily reminds us of Chainlink. For the past two years, the decentralized oracle provider managed to vastly increase its popularity by specifically focusing on network growth.
Partnering with numerous dApps, protocols, and companies who need Chainlink’s services and products, the network and LINK’s price increased massively in value.
Yearn Finance might now be on the same road, seeing that it took the steps necessary to connect with the entire ecosystem. With numerous platforms under his ownership, Andre Cronje may ultimately dominate the DeFi market in every available niche. Yearn Finance, Keep3r Network, and the new Deriswap project cover almost all decentralized instruments in DeFi.
Combined with an upcoming project on which Cronje works together with the SushiSwap team, the Yearn ecosystem may subjugate all other platforms. But as we have seen, Cronje’s intentions are to synergize with other projects and not to replace them.