Wintermute Trading Struggles to Secure YFI Tokens from Yearn Finance
– Wintermute Trading, a major market maker in the crypto industry, is facing challenges in obtaining YFI tokens from Yearn Finance.
– Wintermute is seeking to borrow 350 YFI tokens, valued at over $2 million, in exchange for supporting markets for Yearn’s yCRV token.
– Yearn voters are rejecting the proposal, citing concerns about fairness and decentralization.
– Wintermute has been increasingly creative in extracting value from crypto projects, but this approach is not aligning with Yearn’s ethos.
– Wintermute initially proposed paying 0.10% interest on a 12-month loan without providing crypto collateral, relying on its reputation instead.
– Wintermute’s acquisition of 25 million CRV tokens has not convinced Yearn voters to trust the company.
Optics and Considerations
– The vote, known as YIP-74, is likely to fail, with 94% of votes against Wintermute’s proposal.
– Another market making firm, DWF Labs, has pitched Yearn more favorable terms for the same YFI tokens.
– Wintermute is conscious of its image and seeks feedback on how it is perceived in governance chats.
– There are potential benefits to Wintermute participating in Yearn’s markets, but negative sentiment could outweigh them if an unbalanced agreement is accepted.
Hot Take
Wintermute Trading’s attempts to secure YFI tokens from Yearn Finance have faced resistance from Yearn voters. The proposal, which involves borrowing tokens in exchange for supporting markets, goes against Yearn’s principles of fairness and decentralization. Wintermute’s reputation and acquisition of CRV tokens have not convinced the community to trust them. While optics and perceptions are important, it is crucial for Yearn to consider the balance and fairness of any agreement.
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