Yearn released financial statements for the first quarter of the year, which found impressive earnings for that period.
According to the Yearn Finance quarterly report posted on GitHub on April 27, the platform generated $ 4.88 million in revenue for the quarter.
As we mentioned before, it was profit before interest, taxes, depreciation and amortization or EBITDA, Yearn Finance made more profit in the first three months of 2021 than in the six operating months of 2020, which amounted to $ 3.7 million.
Profit in March alone was $ 3.16 million, which was about the same as its operating income for the six months of last year. Not every month breaks records, but in January and February of this year, the DeFi protocol earned $ 528,000 and $ 1.19 million, respectively.
The report cites the yVault product line as a leading source of revenue and continues to be critical of Yearn’s core business. Vault uses strategies to automate the best dividend opportunities available through investments in other protocols. Launched in January, Vault 2 saw a peak in revenue over that period.
In the first quarter, 36 new yVaults repositories were launched, including five new v2. The Y3CRV vault, comprised of three stable currencies – USDT, USDC and DAI – was the most profitable, generating $ 1.1 million in revenue in the quarter. A similar report for 2020 showed that two-thirds of the income at that time came from the yUSD storage.
The YYFI vault saw big revenue growth in March when the protocol encouraged returning farmers to move to v2 vault and generate more revenue.
Yearn Finance used to make money from withdrawal fees using v1 vaults, some of which are still in production taking 0.5% on collateral withdrawals. With the launch of v2, the fee structure has changed slightly: withdrawal fees have been removed, a 2% administration fee has been added and a performance fee of up to 20% has been added. He argues that the goal is for users to pay the maximum fee for the best performing safes.
The protocol began using ROE with its own assets at the end of February, which also began to generate significant returns. Yerne formed a committee to start generating dormant asset income in the Treasury with capital raised from opening CDPs (Additional Debt Centers) under other DeFi protocols such as MakerDAO.
“YVault’s revenue has been the main driver of adjusted EBITDA earnings, but we expect Treasury yields to increase revenue in the future.”
At the time of writing, the total cost of the protocol was just over $ 3 billion, according to DappRadar.