It’s not everyday you wake up to hear that the dev of a defi is quitting, it’s usually devs rugpulling and pulling out all the liquidity and running off with all the money. That’s not the case for the Yearn Finance Devs, one of the developers of Yearn Finance came on Twitter to announce that he has decided to quit the defi space alongside his co developer.
Yearn Finance is a defi platform with an yield optimizer built on Ethereum blockchain that lets users earn from trading and lending. More Info
Twitter
This defi platform was so successful in 2020/2021 to the extent that the price of YFI, native token, was valued far more than bitcoin. It’s All Time High price is $96,000, valued a lot after it’s success in the summer Defi period.
Yearn Finance is something I never paid attention to because I felt the value was too high and I didn’t understand the reason behind the massive token value pump, but subsequently over the months, the value of the YFI token started tanking.
Before the Twitter announcement from the developer Anton Nell rumored had it that the other co developer had left these projects after notifications of change in bio on his LinkedIn Profile. He changed his bio stating that he doesn’t work in Yearn Finance, Fantom Foundation and Ethereum anymore. Seems like some people saw it coming, I wonder if that was the moment they decided to pullout their investments from the projects.
When something like this gets announced I can’t help but wonder, what happens to the project? Does it still get run? Even though we know that it’s meant to be a decentralized platform, can it work even after the quitting by the Devs? Just like Satoshi Nakamuto going offline and leaving the Bitcoin blockchain to be run by the community, is that how yearn finance will be run?
The tweet stated that all 25 apps being run by them will be terminated after April 3rd 2022, I guess they are giving investors the opportunity to pull out before they all get terminated. We are definitely going to be seeing more price tank from these tokens associated with these devs.
Twitter
Some people like the CEO of Tron, Justin Sun, wasted no time in trying to acquire these apps and services from the CEO.
In January a blog rant was written by cronje titled “Building In Defi Sucks”. This was just a way of him releasing some rage and steam, but this time around it’s a terminating decision to seize the yearn finance operation.
This decision has made most of the tokens associated to their projects tank, the value of the YFI token took no time in losing $3,000 off its value. I really feel so sad for investors who have investments on these platforms. This seems like a rug pull but not in the regular unaware way, it’s a civilized rug pull or something we can call a soft rugpull.