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DeFi Protocol Yearn Finance's Token Rises 7% Despite Market Plunge

source-logo  coindesk.com 03 March 2023 11:54, UTC

YFI, the native token of decentralized finance protocol Yearn Finance, has managed to fend off bearish market forces with a 7% upward move as investors attempt to capitalize on the upcoming roll out of liquid staking derivatives (LSD).

Over the past 48-hours, YFI has surged by 22.61% against its bitcoin (BTC) trading pair and 18.87% against tether (USDT), according to Cryptowatch data.

The cause for optimism among YFI traders was last week's announcement that Yearn Finance was moving into liquid staking derivatives. Liquid staking derivatives are a type of token that gives investors exposure to an underlying asset whilst receiving staking rewards as a part of Ethereum's proof-of-stake network.

"Get exposure to a basket of LSDs in one token," yearn finance said in a tweet. "Spread your risk. [Receive] boosted yields."

At the time of writing, YFI was trading at $10,770 with 24-hour trading volume topping $252 million across all exchanges.

Meanwhile, bitcoin and ether (ETH) are down 4.44% and 4.58% respectively as fear gripped the crypto market following concerns over crypto bank Silvergate's financial stability.