The Yearn community has been approached by Wintermute Trading with a request for a 12-month loan from the DAO’s treasury in the amount of 350 YFI, or $1.98 million. If approved, the loan would have a 0.10% interest rate that would be due at the end of the term.
Wintermute intends to allot up to 3M CRV ($1.4M) towards the acquisition of yCRV as part of their ongoing partnership with Yearn. Then, for at least a year, they will deploy these resources to Yearn’s yCRV-CRV Curve pool (lp-yCRV V2). This programme intends to improve the yCRV peg, increase the pool’s liquidity, and rebalance the pool, which currently has a 59%/41% yCRV/CRV ratio.
Recently, the DeFi industry had to deal with difficulties, most notably a Vyper flaw that significantly reduced CRV’s liquidity. Because of the price decline of the CRV, this raised concerns among residents of Aave. After participating in OTC deals across DeFi, Wintermute Trading is now looking to deploy some CRV tokens on websites like Yearn.
Wintermute Trading is one of the top crypto-native algorithmic trading firms. It was founded in 2017 by three former Optiver employees. Since their establishment, they have transacted over $3T, increasing their reach to more over 80 exchanges.
The YFI loaned will only be utilised for trading. Additionally, Wintermute plans to invest yCRV tokens into the Yearn yCRV-CRV pool for at least a year. We’ll put up a 3/4 multisig to make sure that each transaction needs at least one contributor’s signature.
Wintermute agrees to refund the entire 350 YFI loan amount and the 0.10% interest to the DAO’s treasury at the conclusion of the 12-month term. The 350 YFI will be transferred to Wintermute’s indicated address if the Yearn DAO approves the proposal, and a 3/4 multisig will be established after that. The Yearn community must choose whether to accept or reject Wintermute’s proposition right now.