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Top Competitors of Y.Financial: Game of Long-Run

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Y Financial’s index token holders have robust opportunities to voice their opinion. Each YFIN index token holder is eligible for YDOT governance tokens at a 1:1 ratio.

Y Financial launched its testnet in October 2020. The entry of the platform in the world of DeFi, especially in the domain of fully automated yield farming, has garnered much attention from investors and developers alike. YFIN is the index token of Y Financial.

YFIN works as an aggregated trading gateway into four highly anticipated crypto tokens, known as Core4. Investing in Y.Finacial’s index enables the user with an automating yielding opportunity among any of the four Core4 tokens, namely YFI, YFII, UNI, and SUSHI. It reduces the scope of single token volatility and removes the need of swapping multiple times. Resultantly, investors save a significant amount on their gas fees, anywhere between 10% and 25%.

Y Financial’s index token holders also have robust opportunities to voice their opinion. Each YFIN index token holder is eligible for YDOT governance tokens at a 1:1 ratio. Moreover, every ninth day on the platform is a ‘harvest powered’ governance day, when the platform offers zero fees on transactions between Y Financial members on the platform. YDOT holders voting with the majority are additionally eligible for rewards being airdropped to them.

The staking platform of Y Financial makes it easy for people uninitiated in crypto-staking. All they need to do is hold the token on the platform. It eliminates the time-consuming and oftentimes disengaging process of having to approve the token, stake them, unstake them, etc. The major players in the field of yield aggregation are burdened with a complicated process of staking. Y Financial is a platform that frees users of that hassle. Let’s have a look at these other players in further detail.

yEarn Finance is one of the biggest names in the DeFi yield aggregation space. This yield aggregation protocol recently launched its yETH strategy for automated ETH yield farming. yEarn leverages several lending pools to carry out its automated yield farming strategy. The most popular pool of yEarn is yearn.finance. Yearn.finance swaps funds between three of the most popular crypto protocols to maximize the return on liquidity. These protocols are Compound, Aave, and dYdX.

Another lending pool of yEarn is known as Curve’s Y Pool. This pool facilitates users to leverage yEarn’s interest-earning yTokens to access four of the top stablecoins in the market: USDC, DAI, TUSD, and USDT.

Investing in yield aggregation platforms’ index tokens generally results in the simultaneous acquisition of the native governance token of the platform. yEarn has also launched a governance token named YFI. YFI can be acquired through liquidity money on several different pools. The user needs to stake his proof of liquidity. YFI is one of the very few DeFi tokens that was not preceded by any premining. There was no DEX offering as well.

Although the users are free to make a withdrawal any time, they need to pay a 0.5% fee at withdrawal. Yearn.Finance generates its revenue through this withdrawal fee and the gas-subsidization fees at 5%. When calculating the potential return from investments at Yearn.Finance, one needs to include this fee as it has to be paid by every user. Even users who withdrew their stake before the minimum time period of six weeks to break even had to pay this fee. This makes YFI withdrawal expensive and a cause of concern for new users.

While YFIN has four of the most highly anticipated tokens as underlying assets, yEarn.finance uses YFI as reward tokens. Users can claim their rewards on the platform by burning the YFI tokens. The amount that is redeemed is equivalent to the share being burned in proportion to the total supply of the token.

Harvest.Finance

Another important contender in the field of yield aggregation is Harvest.finance. Like other competitors in this space, Harvest.finance also entered the market to offer a convenient way to farm yields.

Users can deposit their tokens to Harvest.finance. These tokens may include DAI, USDC, WBTC, and other types of supported assets. The tokens or assets are then put into high yield farming opportunities by the platform. In exchange, the user receives an asset. These assets are called fAssets and may include fDAI, fUSDC, and fWBTC, depending on the type of token the user is putting in. Ownership of these fAssets makes the user automatically eligible to receive a proportional share of revenue as a return.

As an aggregated service provider, Harvest helps investors to save time on DeFi Tracking, save gas costs of regular harvesting, and move funds from one opportunity to another. Harvest.finance handles all these together through its APY tracking, strategy development, and auditing facilities.

The native token of Harvest.finance is FARM. Apart from sharing their part of the profit from the yield farming revenue, the FARM holders are eligible to receive incentives in exchange for providing trading volume in Uniswap. Further, in terms of governance rights, holders of FARM can vote on issues crucial in deciding the direction of the cooperative.

A careful examination of FARM’s contract for its pool shows that the governance of Harvest farm may not allow smart contract staking. The contract says that if it is a smart contract staking, the governance of the pool has the power to not only blacklist the smart contract but also to take all that is being staked.

APY.Finance

Aimed at democratizing yield farming, APY.Finance positions itself as a yield farming Robo- advisor. It keeps on updating the pool to optimize the return.

APY.Finance has a robust risk-management framework. The platform assigns a risk-score to each strategy to produce a composite score that includes smart contract risk, financial risk, and centralization risk. The user’s funds or liquidity is then distributed across different portfolios of farming strategies. This way the platform optimizes itself for risk-adjusted yields.

Like most of its peers in the domain of automated yield-aggregation, APY.Finance is fully community-owned. The users get APY governance tokens and subsequently can propose and vote on any system parameter.

Unlike Y Financial, APY.Finance uses a specific contract for a specific currency. The platform issues its own APT token to represent a user’s stake in the pool. Although there are separate contracts for DAI, USDC, and USDT, they are managed by the APY Manager as a single pool.

With an increase in the volume of the total value locked, or TVL, APY.Finance expects to save increasingly more on gas savings. The platform claims that gas savings may go as high as 99%. When it comes to the savings opportunities, Y Financial users don’t have to pay much fees either. The staking is done through the smart contract and rewards are delivered through airdrops. It optimizes the token acquisition process and mitigates both risk and transaction-related fees. The only fees the users pay is when they withdraw from the platform.

APY.Finance is funded by Alameda Research, Arrington Capital, Cluster Capital, CoinGecko, GenBlock Capital, and TRG Capital.

Summary

The authority to choose appropriate underlying assets by the investor himself, several diversified liquidity pools, and larger proposed savings on gas fees are some of the features that make the leading players of automated yield-aggregation distinct.

However, one has to wait for a reasonable time to see how efficient these diverse portfolios turn out to be or whether a platform can reach so large a volume of TVL that gas fees per user come down to $1 from $100.

Yet, a close examination of aggregated yield farming players show that Y Financial has so far been successful to combine the best features of this world and to deliver them in a user-friendly way. It has reduced volatility and both risk and transaction-related fees. It has given the acquirers of its index tokens a voice in the platform’s governance system. Along with airdropped rewards, the platform also incentivizes its users through Y.Family days where transactions between the members of the platform attract zero fees.

Overall, it’s one of the most effective avenues to get simpler, easier, and cheaper access to the world of yield farming trading in DeFi assets.

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Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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CME’s Micro Bitcoin Futures Go Live for Trading

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The CME micro Bitcoin futures allows retail players and individual crypto investors to deal with small-sized contracts thereby ushering more market liquidity while giving the smaller players equal exposure to a regulated environment.

On Monday, May 3, the Chicago Mercantile Exchange (CME) announced the launch of the Micro Bitcoin Futures in a move aimed at expanding its crypto derivative products. Over the last year, Bitcoin has gained significant price appreciation and momentum.

Thus, the demand for Bitcoin derivative products has also surged. While CME was indeed the first to launch the Bitcoin Futures, it was largely available only to institutional players. The cash-settled CME Bitcoin futures is one of the most popular Bitcoin derivative products.

However, to give retail investors and small players access to BTC derivatives, CME has now launched the micro BTC futures. The CME micro Bitcoin Futures represent one-tenth the size of one Bitcoin. Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products said:

“We are pleased to introduce this new contract at a time when we continue to see consistent growth of liquidity and participation in our crypto futures and options. At one-tenth the size of one bitcoin, Micro Bitcoin futures will provide an efficient, cost-effective way for a broad array of market participants – from institutions to sophisticated, active traders – to fine-tune their bitcoin exposure and enhance their trading strategies, all while retaining the benefits of CME Group’s standard Bitcoin futures.”

Micro Bitcoin Futures: The Power of Small-Sized Contracts

Bitcoin’s popularity is at its peak in the current times. Thus, such small-sized contracts will allow participation from sophisticated individual clients in the market. Besides, it also addresses one of the major issues associated with Bitcoin i.e. the high cost of owning an asset and the desire to engage in a regulated environment.

With the small-sized contracts, the options for CME’s micro Bitcoin futures will also attract retail buying. Daniel Ryba, Executive Director of futures at E*TRADE Financial said:

“Offering Micro Bitcoin futures allows us to provide our customers with even more choice and precision in how they trade Bitcoin futures. The smaller contract size enables traders of all sizes – from institutions to active retail traders – to get exposure to bitcoin prices, or hedge their spot bitcoin positions. We are excited to support this product.”

As said earlier, the micro futures offers more granular exposure on BTC futures. Similar to the larger derivative product, the CME micro BTC futures is also cash-settled.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Ethereum (ETH) New All-Time High of $3194 Makes Co-Founder Vitalik Buterin Billionaire

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ETH price rally has helped its market dominance surge past 16% making it formidable crypto in the market. Analysts expect ETH price to surge to $10K by the end of 2021.

Simply stunning is an understatement for the Ethereum performance in recent time. The world’s second-largest cryptocurrency ETH has been on an indomitable rally and today’s all-time high of $3194 makes its co-founder Vitalik Buterin the youngest crypto billionaire in the market.

The public ETH address of Vitalik Buterin which he disclosed in 2018 has hit over $1 billion in balance with Ethereum’s meteoric rally. As per the data by Etherscan, this VB address holds 333,500 ETH coins. Thus, the balance as of the current price ETH shows $1.043 billion.

Growing ETH Dominance that Boosts Wealth of Buterin

Ethereum (ETH) has largely dominated the crypto market in recent times while Bitcoin (BTC) seems under consolidation. The ETH year-to-date returns stand at a massive 300% as of the current price. Meaning, Ethereum (ETH) has gained 4x since the beginning of the year 2021. On the other hand, BTC price has gained 2x or 100%. Clearly, Ethereum outclasses Bitcoin with a 3:1 margin.

With the recent price rally, Ethereum has hit fresh milestones on multiple fronts. For e.g. Ethereum has outgrown some of the biggest traditional financial institutions and companies. After toppling PayPal last week in market size, ETH has outgrown giants like Disney and Bank of America today. As per the data on Infinite Market Cap, Ethereum (ETH) is the 27 most valuable global asset currently. The next target for Ethereum would be taking on payments giant MasterCard.

Ethereum Gains in Crypto Market Domination

With its price rally this year, Ethereum has extended its crypto market domination. At its current price, ETH dominates more than 16% of the overall crypto market cap. On the other hand, Bitcoin (BTC) is seeing a stop in its market domination.

Over the last month, the BTC market domination has dropped more than 10% and is currently under 47%. Let’s take some of the positive on-chain developments driving the ETH price rally.

  • In April, the ETH gas fee dropped below $10 for the first time in three months. This drop gave investors the flexibility to move their coins without paying too many fees.
  • In April 2021, the Ethereum blockchain network registered a massive 41.7 million transactions. Thanks to the outbreak in DeFi and NFT activity on the blockchain.
  • The ETH supply at exchanges was on a drop. This supply-demand gap helped to drive the price higher further.
  • The CME Ether Future open interest jumped from $68 million on March 1 to $373 million by the end of April. The aggregate open interest for ETH futures across all exchanges has crossed $8.3 billion.
  • In April 2021, the Ethereum-based decentralized exchanges facilitated more than $14.5 billion in trading volumes.

Many analysts predict that the ETH rally won’t stop anytime soon and ETH will hit $10K by the end of 2021.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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TWTR Shares Decline 13% after Twitter Unveils Q1 2021 Earnings Results

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As the report highlighted, Twitter’s total revenue in Q1 was up 28% ($808 million) year-over-year to $1.04 billion.

Social network company Twitter Inc (NYSE: TWTR) declined 13% in its shares in the pre-market trading session following news on lower-than-expected user growth in its Q1 earnings report and lower guidance for the coming quarter. Twitter released its 2021 Q1 financial statement on the 29th of April.

TWTR Shares Down in Reaction to Report on Low User Growth

Twitter shares are down over 13% to $56.60 in the premarket, following the Q1 earnings report. Except for a 2.88% loss recorded in the last five days, Twitter has been growing in the last 12 months. The company has surged 133.80% over the past year and added 20.20% since the year began. Also, TWTR pumped 28.81% in the last three months and another 1.97% over the past month.

At press time, Twitter stands at a market valuation of $51.99 billion.

According to the earnings results, Twitter’s number of monetizable daily active users (mDAUs) was 199 million. The total mDAUs grew 7 million from what was recorded in 2020 Q4 but did not meet analysts’ expectation of 200 million. The social network company added that its user base added 20% year-on-year.

Twitter CEO Jack Dorsey commented on the increased number of users. He said:

“People turn to Twitter to see and talk about what’s happening, and we are helping them find their interests more quickly while making it easier to follow and participate in conversations.”

The CEO added that the ongoing product improvements and global conversation around current events fueled the spike in mDAUs.

Twitter Reports Q1 Earnings

As the report highlighted, Twitter’s total revenue was up 28% ($808 million) year-over-year to $1.04 billion. Also, the revenue is higher than Wall Street’s estimate of $1.03 billion. According to the company’s chief financial officer Ned Segal, the growth signifies “accelerating year-over-year growth in MAP revenue and brand advertising that improved throughout the quarter.”

Under the total revenue, advertising revenue pumped 32% or 30% in constant currency to total $899 million. The summed up revenue consists of total ad engagement and cost per engagement gains. Total ad engagement gained 11% year-on-year, while cost per engagement (CPE) added 19% year-over-year.

Additionally, data licensing and other revenue stood at $137 million, a 9% advance over the previous year. Also, US revenue increased 19% year-over-year to $556 million. International revenue also surged 41% to $480 million.

During the same quarter, Twitter saw adjusted earnings per share of 16 cents. The adjusted earnings topped 2 cents over an earlier forecast of 14 cents. Furthermore, the company saw a profit of $68 million, a contrast to the $8.4 million law posted in the previous year.

In addition, Twitter guided in the report that its expectation for revenue in the coming quarter is between $980 million and $1.08 billion. However, Refinitiv said that analysts were executing guidance of $1.06 billion on average.

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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.



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