Top decentralized finance (DeFi) tokens such as MakerDAO’s Maker (MKR), Aave’s AAVE, Yearn.finance’s YFI have undergone severe correction over the past day. The DeFi tokens underwent a dropdown by over 10%. While the largest cryptocurrency by market capitalization, was down by 2% trading, with Ethereum being down by only a few percent.
Maker, Aave, and Yearn.Finance Corrected 10%
The significant crash in top DeFi coins comes amid changes in key fundamental trends. For instance, Ethereum 2.0 launched this week, gaining over 1,000,000 ETH in deposits. While the total value locked in DeFi pushed to its all-time highs. Hence, the drop in the top DeFi coins comes amid positive changes in the DeFi space.
For instance, Aave has announced the release of a second version of the protocol. The new version includes various features including collateral swapping. This will allow users to easily switch the collateral types backing their loans at a lower transaction cost.
The company document highlighted:
“Collateral swapping can be a useful tool to avoid liquidations. If the price of your collateral starts to fall, for example, you can simply trade it for a stablecoin so you don’t have to worry about price fluctuations and potential liquidation.”
The new upgrade will bring Aave’s native token to the next level.
Latest Changes to DeFi Intends to Attract More Users
Meanwhile, Yearn.Finance too saw fundamental changes within its ecosystem. The DeFi protocol announced on merging with other protocols to attract more users, stating:
“As Sushi focused on expanding their AMM ecosystem, and as Yearn focused on expanding their strategies, more and more overlap became apparent, Yearn needed custom AMM experiences for their strategies, and Sushi started pushing the boundaries of yield and money markets. With these overlaps, more and more work started to become mutualistic, and at this point, it makes to take the relationship to the next level.”
Consequently, the latest changes to DeFi will bring about more users and attraction to the larger landscape.