Today in DeFi - PASTA Falls, YFI Vaults, CRV COMPensation
Popular Italian cuisine farm Spaghetti.Money has experienced a fall from grace as its harvest crop PASTA has fallen 84% in 24hrs. For farmers, this means significantly lower yields, as well as Impermanent Loss for those supplying liquidity to the PASTA/yyCRV pool.
Similar to YFI clones, YAM clones also face the threat of a farming death spiral. Without a fundamental reason to hold the harvest crop, it faces constant sell pressure, causing severe price drops.
A new vault has been unveiled on Yearn.finance. This time, it is for YFI itself. Explanation is sparse, as usual, but it seems that this new vault deposits YFI into CREAM.Finance, a Compound fork which supports YFI itself. This vault then harvests yield from CREAM.
What value do Governance tokens have? CRV showed us yesterday as a CRV whale shifted the weights of CRV distribution in their favor. They shifted weight away from other pools such as sBTC, and massively increased the weight of the Compound pool. Now, Compound LPs on CRV earn much more CRV than other pools.