‘It doesn’t need me:’ yearn.finance’s Andre Cronje on the protocol’s path to decentralization


In the fast-paced world of decentralized finance, the people behind the protocols are sometimes just as captivating as the protocols themselves. 

That’s certainly the case for yearn.finance’s Andre Cronje, the former banking developer who seemingly built out both a cult following and billion dollar protocol over night. Indeed, the governance token tied to the protocol, YFI, has surged beyond $30,000 since its inception at the beginning of the summer. 

If it was up to Andre, however, he wouldn’t be affiliated with the protocol as much as he is. Cronje is currently trying to expand the number of folks responsible for shepherding the protocol.

In the most recent episode of The Scoop, he explained why a proper decentralized protocol doesn’t need a decision-maker or figurehead, and discussed yearn’s planned transition to a more decentralized model in which multi-sig holders would approve strategies. 

“We haven’t fully transitioned yet,” he said. Still, he said: “I disagree with this idea that people have that I am yearn because it doesn’t need me. If I were to have a heart attack on this call now, it’s going to continue without me.”

We also discuss: 

  • Challenges of decentralized governance and how the yEarn community has fared
  • Why it’s difficult for other projects to replicate YFI’s success with their token launches
  • How the experimentation happening in the DeFi world matters to the traditional world of finance
  • What lowering the barrier of cost in DeFi means for innovation 
  • What’s behind the kind of toxicity in the space that almost drove him out
  • Some of the new project ideas yearn is working on, such as Stablecredit

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Yearn Finance shuns governance token with new stablecoin lending protocol


Yearn Finance is launching a MakerDAO like stablecoin lending protocol with no governance token.

Popular decentralized finance (DeFi) platform Yearn Finance has announced a new lending protocol dubbed StableCredit.

StableCredit combines tokenized debt stablecoins, lending, and single-sided automated market makers to offer what it describes as “a completely decentralized lending protocol” reminiscent of MakerDAO (MKR).

Users can deposit USD Coin (USDC) to mint StableCredit USD at a ratio of up to 75%, which can then be then exchanged for other crypto assets. To release the locked USDC, users must deposit the borrowed StableCredit USD back into the protocol.

A September 10 announcement states that StableCredit’s user interface is currently being finalized, predicting the protocol will be publicly launched “in the coming weeks.”

The protocol notably will not distribute a governance token to users — a tactic frequently used to incentivize the use of new DeFi platforms. Yearn Finance’s own governance token YFI has been a major beneficiary of the recent DeFi bubble, gaining more than 800% during August to tag an all-time high above $38,000.

Earlier today, Yearn Finance’s creator Andrew Cronje expressed a certain amount of disdain for the current state of the DeFi sector:

Yearn has garnered popularity through its variety of lending protocols, with its ‘Vaults’ recently attracting investors with the promise of high returns and reduced transaction fees through pooling.

YFI has gained 11.4% over the past 24 hours, with the market rallying in response to Coinbase Pro announcing it will support the token from September 14.