Crypto VC Thinks Yearn.finance (YFI) is the "Future of DeFi"

Crypto VC Thinks Yearn.finance (YFI) is the “Future of DeFi”

Nick Chong

Last Updated: September 24, 2020 3:00 am

3 mins read

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Yearn.finance (YFI) has been one of crypto’s biggest success stories of recent months. Since launching in June for free, the cryptocurrency has rocketed as high as $44,000, becoming one of the fastest cryptocurrencies to reach $1 billion in market capitalization of all time.

YFI has undergone a strong decline over recent weeks in tandem with Bitcoin, Ethereun, and other DeFi coins.

However, a prominent venture capitalist in the space thinks that YFI is the future of DeFi, thus making it also the future of finance.

This is a sentiment in line with many other analysts in the space who see Yearn.finance as a

Yearn.finance Is the Future of DeFi (And Finance), Says Crypto VC Lou Kerner

Lou Kerner, partner at CryptoOracle, thinks that Yearn.finance is the future of DeFi and finance.

He recently published an extensive blog post on the matter on September 20th, in which he stated that YFI is the “most interesting and expansive project” he’s ever seen in the crypto space:

“Yearn is so impressive because it takes the massive opportunity and remarkable complexity of DeFi, makes it simple to use, while deeply integrating with leading DeFi protocols (e.g. Uniswap & Curve), and leveraging community as a powerful moat.”

In the 3+ year I’ve been crypto 24/7, yearn is the most interesting and expansive project I’ve seen https://t.co/cRQL9kVPUu

— Lou Kerner 📍NYC to Paris Blockchain Week – 🇮🇱 (@loukerner) September 21, 2020

A key reason why he’s so optimistic about Yearn.finance and YFI is due to a new product announced by the project’s founder, Andre Cronje. The product is StableCredit, a “single sided decentralized lending protocol.”

Kerner thinks that if StableCredit is properly executed, ” it will be a game changer, and a blackhole for liquidity.”

Where Could YFI Reach?

With Yearn.finance’s fundamentals stronger than ever, it’s worth asking what price YFI will reach over time. The coin has already seen an exponential explosion in its value but there are some think it has room to run.

Mechanism Capital, a crypto-asset fund headed by Andrew Kang, recently tackled this question in an extensive blog post. The firm found that by applying an opimistic discounted cash flow model for YFI, it can be said that the coin will reach over $300,000:

“Our bullish DCF case yields prices of $241k and $315k, depending on whether a performance fee is applied to yToken revenue. A TVL of over $150 billion by the end of 2024 is certainly aggressive — that’s almost 3x the current market cap of ETH! — but given the growth of stablecoins & vaults that we have already witnessed and the fact that we have only implemented a fraction of potential strategies that are planned we do not believe that this scenario is out of the question. We also don’t want to forget that tokenized real world assets are beginning to enter DeFi.”