Wintermute Seeks $1.98M YFI Loan from Yearn DAO

Wintermute Trading has approached the Yearn community with a proposal for a 12-month loan of 350 YFI, equivalent to $1.98 million, from the DAO’s treasury. The loan, if sanctioned, would carry a 0.10% interest rate, payable at the term’s conclusion.

As part of their ongoing collaboration with Yearn, Wintermute plans to allocate up to 3M CRV ($1.4M) to purchase yCRV. They will subsequently deploy these assets to the yCRV-CRV Curve pool (lp-yCRV V2) on Yearn for at least 12 months. This initiative aims to rebalance the pool, currently at a 59%/41% yCRV/CRV ratio, enhance the yCRV peg, and augment the pool’s liquidity.

The DeFi sector recently grappled with challenges, notably a bug in certain Vyper versions, leading to a significant liquidity reduction for CRV. This caused concerns within the Aave community due to CRV’s price drop. Wintermute Trading, having been involved in OTC trades across DeFi, now seeks to deploy some CRV tokens on platforms like Yearn.

Established in 2017 by three Optiver veterans, Wintermute Trading is a leading crypto-native algorithmic trading firm. They’ve traded over $3T since their inception, expanding their footprint across 80+ exchanges.

The borrowed YFI will be strictly used for trading. Wintermute also intends to deploy yCRV tokens to the yCRV-CRV pool on Yearn for a minimum of 12 months. A 3/4 multisig will be set up, ensuring transactions require at least one signature from a Yearn contributor.

At the 12-month term’s end, Wintermute commits to returning the full 350 YFI loan amount with the 0.10% interest to the DAO’s treasury. If the Yearn DAO greenlights the proposal, the 350 YFI will be transferred to Wintermute’s specified address, followed by the establishment of a 3/4 multisig.

The Yearn community now faces a pivotal decision: to approve or decline Wintermute’s proposal.

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