The Yield Farming Landscape

In the wild west of decentralized finance, where fortunes are made and lost faster than you can say “cryptocurrency,” yield farming has become a massive phenomenon. With players like Yearn.Finance wrangling significant amounts of funds, it’s no surprise that some projects are feeling a bit trampled.

Ruffled Feathers at PoolTogether

Enter the no-loss lottery project PoolTogether, where users can deposit DAI and hope to strike it rich without the risk of losing their principal. However, the odds of winning suddenly look a lot worse when you discover that Yearn dominates the pool. Leighton Cusack, co-founder of PoolTogether, expressed concern over Yearn’s staggering control over DAI funds: a whopping 57% of the total $47 million in the pool. Essentially, this sets Yearn up as the ultimate lottery whale, monopolizing any hopes of winning and undermining the very essence of the lottery.

Quote Worth Sharing

“At this scale, it becomes problematic as they monopolize the chances to win and marginalize the core value prop of the protocol.” – Leighton Cusack

Curve Finance’s Strategic Moves

Meanwhile, in another corner of the DeFi universe, Curve Finance is also feeling the heat. A governance proposal was set in motion, suggesting the removal of CRV benefits for the alUSD pool. Why? Because alUSD, a stablecoin from Alchemix, was apparently causing more dumping of CRV than desirable. It’s like a game of hot potato, but instead of a spud, it’s someone’s crypto savings.

Could This Be a Cryptographic Clash?

The growing tensions between these projects have led social media theorists to speculate wildly. Could there be resentment brewing under the surface? Is Yearn’s farm-and-dump game plan leading the ecosystem into governance wars? Could we soon see the classic battle of protocols versus the monstrous farm overlords?

Follow the Governance Drama

• Will Alchemix continue to snub Curve and opt for a competitor?
• Are Yearn’s strategies turning it into the heavyweight of DeFi?
• What will governance mechanisms look like in this new era?

A Path Towards Collaboration

In an interesting turn of events, Cusack revealed that PoolTogether has actually agreed to collaborate with Yearn. Their joint effort aims to optimize outcomes for all, allowing Yearn to provide interest while curtailing its potentially damaging whale behavior. Thank goodness for new partnerships that help smooth out the wrinkles instead of magnifying them!

Key Takeaways from the Interview

• Yearn will now act as an interest provider.
• Yearn won’t deposit into PoolTogether anymore—avoiding risky recursive loops.
• Overall, Yearn wants PoolTogether to succeed—because that’s a win-win situation.