Andre Cronje: New Vaults Enable Traders To Use 90X Leverage

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Andre Cronje: New Vaults Enable Traders To Use 90X Leverage

A series of new vaults coming from several platforms in Yearn Finance’s ecosystem enables traders to use up to 90x leverage, reveals Andre Cronje.

The leading DeFi developer publicly shared that all existing vaults will become leveraged vaults and that users will be able to use cross-asset strategies. Furthermore, Cronje stated that everyone can interchangeably use assets stored on multiple vaults.

Vaults are the most sought-after Decentralized Finance product in the Yearn Finance ecosystem. With upcoming changes being made to vaults Yearn’s creator Andre Cronje reveals one specific trading tool that vaults will have. Per his latest Twitter post, V2 vaults will feature leveraged trading with up to 90X leverage.

Traders will be able to use 90X leverage on stablecoins and 80X leverage on Ethereum. This enables traders to either sell, compound, or accumulate assets. With more collateral coming to the Iron Bank, a vault on Cream V2, the Alpha V2 yield becomes more agnostic.

Cronje also points out that after all of the new vaults have been launched, DeFi enthusiasts can farm assets with up to 90x leverage. These assets include famous DeFi tokens such as SUSHI, CRV, ALPHA, YFI, and PICKLE.

Yearn Finance ecosystem thrives in bullish environment

As developers work hard on improving and optimizing the state of the Yearn Finance ecosystem, the protocol itself successfully attracts more liquidity.

Market data from DeFi Pulse shows that Yearn Finance trends in a bullish fashion for the first time since December. At the time of writing Yearn Finance hosts $371 million in collateralized assets and is ranked 12th on the DeFi leaderboard.

The sector’s best yield farming project has a long way before it reaches its old liquidity ATH. However, we do note that Yearn fares well versus other protocols and that it might finally be a top 10 DeFi project.

The same bullish notion can be mentioned for the protocol’s native YFI governance token as well. In the past 24 hours, YFI experienced a 42% spike which led to a price of $36,000. The token now stalls but there is no sign of stopping as bulls have shown their dominance considerably since this morning.

High chances for YFI to go parabolic

YFI may enter a parabolic phase if it surpasses its old ATH of $43,000. In that case, the asset will enter a price discovery stage in which it can reach all kinds of prices.

It depends on traders and investors how much YFI can be ultimately valued. In either case, all holders can expect a great start of the year as Yearn is poised to explode.

As Defiye previously reported, Yearn Finance was on the edge of a crash in late December. The project had the potential to form another H&S pattern which we have already seen in a previous cycle in September. Nevertheless, bulls have held strongly onto their positions and managed to catapult YFI to higher prices.

Despite the bearish sentiment at the time YFI nearly doubled in value since last week. Considering that investors have harshly rejected the bearish drop, will we finally see a new all-time high for Yearn?


Marko Mihajlović

Marko is a content writer passionate about cryptocurrencies, blockchain technology, geopolitics, and information security. After an internship at Cointelegraph in 2018, he decided to pursue writing about the field of decentralized technology full-time.

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