A core developer at Yearn Finance created a feature that enables zero-tx deposits into Yearn Vaults. During the preliminary stage, the protocol will support the new design for DAI and USDC vaults. The announcement was revealed in a Twitter post on December 6.
Working under the pseudonym of Banteg, the developer has brought many great features and changes to the Yearn Finance protocol in the past few months. This time around, Banteg worked on a solution that reduces the number of transactions needed to make a deposit from two to one. By doing so, not only will Yearn have an improved UX design but it will also feature lower gas fees.
Banteg has published the feature’s code on GitHub, where he described it. The GitHub page notes that the feature is only available for those tokens that have implemented the ‘permit’ function.
The function was originally created through an Ethereum Improvement proposal (EIP-2612) in April 2020. So far, DAI and USDC are the only tokens from Yearn Vaults to have this function implemented in their code.
Banteg notes crypto enthusiasts have used the permit function only 9 times on the USDC token. However, DAI has a much higher adoption rate with around 9382 uses.
Yearn Finance Zero-TX deposits to cost 13.53% less
The core developer described the ‘zero-tx’ deposit feature as having lower gas fee costs and reducing the number of transactions needed to make a deposit. Now, users can make one signature and one transaction instead of waiting for two transactions.
When asked if the feature reduces gas costs, Banteg confirmed that it would indeed make transactions cheaper. In one of his examples, the developer claims that deposits with permits would require 13.53% less gas.
DeFi’s hottest blue-chip token resumes growth
In other news, Yearn Finance made significant progress in developing its ecosystem. With several partnerships already established, we can only imagine how many more integrations are under the way. In their latest announcement, Yearn shared that their YFI token is now featured on Bancor’s new liquidity mining program.
Bancor attracted millions of dollars with its new yield farming initiative. Originally, the liquidity protocol offered only eight tokens for the program.
But after a couple of voting sessions, the community decided to implement a liquidity pool for YFI as well. This can only bode well with Yearn Finance as investors will be motivated to stake one of the most bullish DeFi blue chips.
In the last seven days alone, YFI moved up by up to 14.8%. Its 30-day performance is even better considering that the token surged by 141%. The price action occurred as a result of a short squeeze, in which bearish traders faced liquidation as a result of YFI surging from $8,700 to $16,000 in the span of only two days.
But while the project’s native cryptocurrency does well in the market, the state of the protocol has an entirely different story.
According to market data from DeFi Pulse, Yearn Finance hosts only $420 million in collateralized assets. Historical data shows that Yearn had a much better time between August and September when the protocol flirted around $900 million. Since the merger announcements from late November, Yearn has in no way moved positively in terms of TVL, but can we expect a network effect to improve upon that in the future?