Yearn Finance’s decentralized governance has given its approval for the Yearn Improvement Proposal 54 (YIP-54). It took three days for the voting process to complete, and it formalized the ongoing budget that Yearn has been making for operational expenses. This new proposal is aimed at making improvements to the ones that have come before it, such as YIP-41 and YIP-36. Thanks to these proposals, it had been possible to make expenditures, such as bug bounties, hackathons, security audits, grants, and even the salaries of all operation employees. Now that YIP-54 will come into effect, members of the community will be able to audit the expenses and they will be able to do it on a quarterly basis.
Along with this, the new proposal comes with another provision that has been incorporated; it will allow the Operations Fund, which is also rather newly-formed, to purchase YFI or any other asset for that matter, doing it at its own discretion. A lot of users took to Twitter to express their appreciation for this provision because they believe that it could end up giving the YFI token a solid boost as well. Some of the other proposals made for the Yearn network are mostly focused on trying to encourage a broader level of participation from the community.
These proposals do this and also give the Yearn ecosystem a boost. For instance, YIP-53 had already established a program dealing with security audits, known as ‘yAcademy’. The whole purpose of the aforementioned program is to attract top talent and then subsequently retain this talent within YFI. Another important factor that’s part of this YIP is the potential of forming a profit-generating auditing service in the future in the Yearn ecosystem. In contrast, YIP-52 is focused on providing strategists in the Yearn ecosystem with more rewards.
In this case, this refers to the engineers behind smart contracts who develop strategies bearing yield, particularly for Yearn Vaults. The approval for the latest proposal comes amidst a very strong run for the YFI token in the Yearn ecosystem. The token has already become quite infamous for its immense volatility, but it still seems to be gaining ground, regardless of it. The rally that’s being experienced by YFI is in excess of 200%, as it went from a position of $7,700 to a whopping $18,000, which is no small feat. Therefore, it doesn’t come as a surprise to know that this token is currently being regarded as the top performers in the decentralized finance space.
As of now, the price of the YFI token has gone past the $18,000 mark, and it is not set at $18,266. This has certainly proved to be helpful for Yearn as well because it now has a total value locked of $360 million, which can be found in its yield-bearing vaults. This is a rapid increase in the total value locked, which had been at $330 million in October. It is an indication of the rapid growth that has become prominent in the DeFi space.