yearn.finance (YFI) Its developers have published a new announcement minutes ago for the trending liquid staking derivatives (LSD) of the last days. yETH When they announced that they would issue an altcoin named YFI, there was a very sudden increase in the price of YFI.
A Sudden Rise In The Price Of The Token When YFI Altcoin Developers Introduced A Liquid Staking Derivative Altcoin Called yETH On Twitter
YFI developers announced the development in their official Twitter accounts:
“Meet yETH, the LSD of LSDs.
Get exposure to a basket of LSDs with a single token.
Divide your risk.
Get increased returns.
Get ready to expand your mind.”
Introducing yETH, an LSD of LSDs.
💊 Get exposure to a basket of LSDs in one token.
🌈 Spread your risk.
🍄 Boosted yields.Get ready to expand your mind anon.
— yearn (@iearnfinance) February 21, 2023
However, the developers also shared a video on Twitter, announcing that the yETH altcoin will be released “soon”.
What are Liquid Staking Derivatives?
As Ethereum is now a Proof-of-Stake chain, users can stake their ETH to earn staking rewards. Staked ETH is currently not recoverable until the Shanghai upgrade in March, causing ETH to be locked up and capital inefficiency.
One of the latest trends, liquid staking, solves this problem by allowing users to receive a liquid staked derivative token that they can use in DeFi when they stake their ETH.
Liquid staking providers charge 5-10% commission fees when providing liquid staking services.
After the Shanghai upgrade, ETH can be removed from staking, causing more users to liquidate their ETH and increase the revenues of liquid staking providers.
*Not investment advice.
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