User That Borrowed $80m Worth of Yearn.finance (YFI) Repays Loan


Yearn.finance (YFI) has been under pressure over the past few weeks. The leading Ethereum-based Coin

A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.

» Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin has dropped dramatically from its $44,000 all-time high set around six weeks ago to a local low of $12,000 just 12 hours ago as of this article’s writing.

How To Get Free Crypto  

The Coin

A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.

» Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin is up approximately 20% in the past 24 hours as buyers have stepped back in. Bitcoin is also rallying a few percent due to news that Square, a large fintech company, has invested more $50 million into BTC for its balance sheet. $50 million represents only 1% of Square’s balance sheet, but many in the space see this as a decisive victory for adoption.

The rally in the price of YFI comes after a larger borrower of YFI seemingly closed a large short position for the asset. There were some analysts expecting a “short squeeze” for altcoins, especially Yearn.finance.

14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!
Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Yearn.finance Short Closed Amid Strong Move Lower 

Over the past week, there’s been much drama on Twitter because on-chain analysts have spotted that a large cryptocurrency investor has been borrowing literally around $80-100 million worth of YFI through Aave.

Coinbase Banner  

Aave is a money-market protocol where users can borrow and lend cryptocurrencies; borrowers can do whatever they want with the coins they borrows, as long as they pay it back along with the associated interest. Yearn.finance’s YFI have been deposited on Aave en-masse due to potential yields on lending coins to the protocol.

The vast amount of YFI borrowing has left many to believe that the user behind these transactions is shorting the cryptocurrency.

As noted by crypto trader Hsaka, just today, the user closed their YFI position on Aave, paying back 525 YFI to the protocol’s pool.

Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase

DeFi Still in Vogue

The closure of this position comes as analysts and fund managers within the space have asserted that the fundamentals of the DeFi space remain extremely positive.

FreeBitcoin Banner  

For one, the number of MetaMask users (active monthly users) recently hit one million for the first time ever. One year ago, this metric was closer to 256,000, meaning a growth of over 300% has taken place in 12 months.

Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward
Featured image from Shutterstock
Price tags: yfiusd, yfibtc
Charts from TradingView.com
User That Borrowed $80m Worth of Yearn.finance (YFI) Closes Position

Go to Source
Author: Nick Chong


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.