TechFlow news: Evgeny Gaevoy, founder of crypto market maker Wintermute, posted on X stating that Wintermute is proposing an innovative lending arrangement with Yearn Finance. Wintermute says this setup would allow it to access liquidity from the Yearn platform while also benefiting Yearn.
Gaevoy mentioned that if YFI can be locked at a 20% discount for six months, that could be a transaction worth considering; conversely, if YFI were to be pumped into the top three by market cap, shorting it would also be a viable strategy.
Gaevoy noted that the company holds a significant amount of Curve tokens (CRV) and plans to deposit some of these CRV tokens into Yearn’s yCRV vault to earn yield. In return, Yearn would lend YFI tokens to Wintermute. This arrangement would enhance liquidity in the yCRV pool, reduce slippage, and enable Wintermute to obtain more YFI for market-making activities—creating a win-win outcome.
Gaevoy emphasized that Wintermute has no incentive to borrow YFI for short-term manipulative trading, as such actions would damage its reputation and long-term business interests. Wintermute will only profit through legitimate trading strategies and will return the borrowed YFI at the end of the term.
