Polychain Capital formed a position for $ 5 million …

Polychain Capital formed a $ 5 million position during the YFI depreciation

Renowned cryptocurrency fund Polychain Capital has taken advantage of the yearn.finance (YFI) DeFi protocol token decline to form a significant position.

According to Alex Svanevik, CEO of Nansen analyst firm, the first YFI transfer was made to the wallet attributed to Polychain Capital on October 17. Its size was 329 YFI, or about $ 5.15 million at the current exchange rate. Tokens came from the address of the Binance exchange.

329 YFI makes Polychain Capital the largest token holder among wallets not owned by the exchange or yearn.finance itself. The issue of YFI is 30,000 tokens, as a result of which Polychain Capital controls a significant share in the total volume.

Nansen uses proprietary analysis engines to track asset allocations on the Ethereum blockchain. Polychain Capital is an active player in the cryptocurrency space and is estimated to have more than $ 300 million in assets under management. The fund was founded by Olaf Carlson-Wee, one of the first employees of the Coinbase exchange..

The YFI token is of significant interest to market participants due to the dynamics of the rate. Named by its creator Andr√© Cronier “useless” YFI has been growing rapidly in value since August, and by mid-September peaked at about $ 44,000. Since then, the token has experienced a decline and recently reached $ 13,500..

Polychain Capital formed a position for $ 5 million ...

Alameda Research, which owns the FTX exchange, has previously been accused of helping YFI collapse in order to cash in on a short position. Alameda Research founder Sam Bankman-Fried, commenting on these events, stated that the total size of the position was only $ 3 million, while outside observers could overestimate it..

According to the ByBt service, financing rates for derivative positions on YFI on Huobi and FTX exchanges remain in the negative zone. This means that the short holders currently dominate the market and have to pay the long. Polychain Capital, however, is already betting in a different direction.

Polychain Capital formed a position for $ 5 million ...