Total value locked (TVL) in decentralized finance (DeFi) is plummeting after pioneer and founder of Yearn Finance Andre Cronje and his colleague and senior developer at the Fantom Foundation, Anton Nell, announced their departure on Sunday.
Since the announcement, the TVL on Fantom DeFi has dropped by over 21%, while the FTM token price has dropped by over 19%, with a near 200 percent rise in trading volume, signaling a significant sell-off.
Fantom surpassed Binance Smart Chain to become the third-largest DeFi ecosystem in TVL in late January, but its quickly dropping locked value has pushed it to fifth place, just ahead of Solana.
Optimizer for DeFi yields The price of Yearn Finance’s token (YFI) has dropped over 9% since the announcement and is now trading at US$18,237.68, while its trading volume has increased by over 426 percent.
Developers were caught aback by the market’s rapid swings and explained that initiatives like Yearn Finance have other contributors to keep them running, even if the web pages that provide user interfaces may be shut down.
Yearn Finance, Chainlist, and Solidly are among the 25 apps and services that will be shut down as of April 3, according to Nell’s announcement.
Cronje had left crypto in 2020, but with the rise of Yearn Finance in the same year, he returned.
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