Yearn Finance users have sent a clear message — buy more Ether.
More than 82% of voters in Yearn’s online poll have urged the platform to accumulate more of Ethereum’s ETH and strike a better balance with its native token, YFI.
The poll supports buying Ether as an extension of Yearn’s Buyback and Build proposal (YIP-56), which replaced the protocol’s staking rewards with buybacks. Yearn recently made headlines with $1.47 million spent on buybacks. Now, the proposal says, the protocol may begin to “own the land (ETH)” where Yearn operates just like “the best restaurants” own their real estate. “DeFi businesses should do the same, accumulating ETH strategically in their treasury, the digital version of real estate,” the proposal’s author, yfi_lit, says.
The proposal won fans on Twitter, too, among them renowned venture capitalist Garry Tan.
“Eth is going to be the only layer-one. A multi-chain world is really just an Ethereum + rollup world,” the post said.
Scoopy Trooples, co-founder of the Alchemix protocol, expanded on the idea, suggesting that a 50/50 ETH-YFI split could be used to provide liquidity in Sushiswap, which is already a partner. That would generate more fees for Yearn.
Yearn’s treasury currently holds $200 million of its YFI token spread across its wallet and DeFi protocols, and only $59,000 of Ether at the time of writing. If Yearn moves ahead with Ether buybacks, it may kick off a trend of other DeFi protocols also “owning the land on which they operate,” further shrinking available ETH supply.
[UPDATED 5/26 @ 8:20PM EST TO CORRECT AMOUNT OF YFI HELD IN YEARN’S TREASURY]