Yearn Finance Buyback Triggers Rise in Price

The popular DeFi platform, Yearn Finance, announced a buyback program that saw it rise by about 19% within 24 hours. 

The buyback was implemented after community members submitted proposals that would improve the tokenomics of the platform and accrue more value to token holders. While there were several proposals, one of the winning proposals was the buyback of tokens.

Yearn Finance Introduces Buyback Feature

Following the vote which allowed implementation of the buyback, the official Twitter account of the project announced that it had bought $7,526,343 worth of YFI on the open market. This equals 284.4 YFI ( 0.77% of the total supply) bought at an average of $26,651.

With this buyback, more YFI tokens have been bought back in the last month compared to the whole of last year. As a result, Yearn Finance now has more than $45 million in its Treasury and has told users to expect more buybacks.

According to Adam Cochran of Cinneamhain Ventures, Yearn plans a fee distribution model for its holders similar to what xSushi and veCRV already have. The crypto expert believes that if Yearn shifts to the veYearn model, we might see Decentralized Autonomous Organization (DAO) treasuries accumulating the token.

YFI Reacts Positively to the News

The market has responded well to the buybacks and promise of future buybacks, with YFI value rising from around $20,839 to $25,850 in the past 24 hours. The buyback represents a major catalyst for the YFI token, which has been under immense pressure for a while now. 

With the buyback, many investors are bullish on YFI as there are signs of Yearn adopting the veYearn model, which is a major incentive for DAOs who want to accumulate the token.

YFI remains one of the most valuable tokens ever, with an all-time high of $93,435.53 and a maximum supply of 36,666 tokens. YFI is the governance token for the Defi platform, which provides yield generation, lending aggregation, and insurance. The Ethereum-based platform offers three core products: Iron Bank, Labs, and Vault.