Maker has implemented several changes to its protocol, one of which includes YFI and its debt ceiling. On November 24, the Yearn token’s debt ceiling increased from 7 million to 20 million DAI. Besides YFI, Maker’s governance model implemented numerous updates for other assets as well.
As spotted by the Maker DAI Bot, an automatized Twitter Bot, the Maker team finally implemented new changes to the protocol. One of the most important updates includes the YFI debt ceiling which has been increased to 20 million DAI.
On November 12, data scientist Sebastien Derivaux shared a new governance proposal on the Maker DAO. At the time, he noticed that the YFI vault almost reached its full capacity.
To counteract the issue, Derivaux proposed to increase the overall YFI debt ceiling on Maker. By passing the proposal, the community increased the overall fees but has decreased risk. The poll ended three days later with 77% of users voting for the 20 million DAI option.
On November 20, the team published a blog post which summarized all recently passed proposals. The list also included the YFI proposal, which ended only five days earlier. Besides YFI, Maker also changed the debt floor for all other vaults. From now on, all vaults have a minimum debt floor of 500 DAI.
A Turbulent Month for Yearn Finance
November marks a turbulent month for the Yearn Finance team. Besides working on his new DeFi options platform, Cronje had to work on his first big project as well.
Last week, the community passed a new governance proposal which will significantly affect the YFI token. According to the creator, Yearn should more effectively utilize the fees generated by vaults. To better spend the fees, the protocol should reinvest them into Yearn by buying YFI tokens. As such, the proposal would create a significant and buying flow of buying pressure.
After being voted on, the governance proposal passed with a 99.85% approval rate. Naturally, the changes are not implemented as soon as the proposal is passed. After all, the developers must work on the smart contracts and implement the changes themselves.
Is the team in a pickle?
But the Yearn Finance team does not only work development-wise. As Defiye reported earlier, a hacker stole $19 million in DAI from Pickle Finance on Monday. Without any insurance fund, the project did not have many options left. As a result, the developers decided to form a gigantic partnership with Yearn Finance.
Discussed in the shadows without any prior announcement, the news did not leave Yearn community members happy. In fact, a majority of YFI holders became angry with the team as they had no say in the partnership. Most believe that the partnership should have been established through a governance proposal.
Nevertheless, the team believes that there should be no such thing as a governance proposal in this case. According to one Yearn developer, YFI holders have no reason to vote on the partnership. Noting that most new changes affect only Pickle Finance and their token, the developer concluded that there is no need to hold a vote.
But naturally, it is unlikely that DeFi enthusiasts will like the response given that it did not explain the lack of transparency.