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Yearn Finance’s founder says he ‘doesn’t build for speculators’

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The founder of Yearn Finance, Andre Cronje, has seen a fair share of criticism lately as he deployed some smart contracts that ended up losing users’ money. Cronje defended himself in a blog post and explained why he believes he shouldn’t be held responsible for those who “ape in” his testing contracts.

Cronje will often place large disclaimers urging people to treat them with caution and not just go in because he built it. Little can be done to prevent this, given the permissionless nature of these products. Nevertheless, Cronje was sometimes criticized for not deploying contracts on testnets, where no real money could be lost. His “I test in prod” adage also turns some people away, as it seems to imply a careless attitude toward security.

Cronje explained that he does in fact test software in multiple stages. “[The statement] exists to deter people from just using systems without investigation. It does not mean that I don’t test,” he wrote.

Before a contract makes it to the mainnet, it goes through a rigorous process of unit, interaction and composite testing. These make sure that each part of the contract is working as intended, down to individual functions.

However, a key part of that process is testing in production to achieve the most realistic conditions. He explained that the mainnet provides the best possible tools and conditions, which cannot easily be replicated locally. “I have discovered issues on mainnet I never encountered locally, I have failed to replicate mainnet systems locally, and I have encountered errors locally that I can’t replicate on mainnet,” he explained.

Furthermore, there are many versions of existing products like Yearn Finance that were deployed to the mainnet without being discovered. “There are over 22 ‘yearns’ on ETH mainnet. There are over 5 ‘YFIs’ on ETH mainnet,” he added. In a conversation with Cointelegraph, Cronje said that the reason why his primary projects were never hacked was: “Ironically, because I test in prod.” With this approach, he says he is able to iterate over the real issues that come up, instead of relying on auditors to review pre-production code. “And if people just wait till I actually launch the product, all will be fine,” he added.

One case of people getting burned on Cronje’s smart contracts involved one of these testing playgrounds, which were still at least a few weeks away from public release.

Addressing these issues, Cronje noted, “I don’t build for speculators.” While he said that he could not rationally understand the people who rushed into his test environments, he seems to have conceded that a more pragmatic approach may be needed. “I have more thinking to do on this,” he concluded.

In the meantime, he pledged to not use his well-known deployer address to conduct further tests. Given the number of previous contracts that went undiscovered, this may be enough to prevent further unfortunate occurrences.

The post follows another instance of people losing money over one of his contracts, an unnamed project often referred to by its token ticker, LBI. The contract was deployed on the mainnet on Oct. 13 and immediately triggered a torrent of people putting their money into it, with many calling it “the new YFI.”

It was not the new YFI. Source: ChartEx

The token’s price fell immediately after, with many stories of people losing small fortunes over it. A barrage of criticism against Cronje was levied by many market participants, blaming him for the loss. It’s worth noting that this price decline was not the result of any kind of malfunction, as the contracts themselves were not compromised.



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Ethereum

3 Trends Show Ethereum Is On Track For Strong Growth in 2021

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  • Ethereum has undergone a strong drop from its year-to-date highs at $490.
  • The coin currently trades for $375, around 25% below those highs.
  • At the worst of the correction last month, the coin was down even further.
  • Ethereum remains bullish on a long-term basis as long-term trends favor bulls, analysts say.
  • One trader recently shared a chart indicating that both the technicals and fundamentals favor bulls.

Three Ethereum Trends Suggest the Coin Is Primed to See Rapid Growth

Ethereum remains in a bullish state from a macro perspective after a strong 25% correction from the year-to-date highs, analysts say.

One analyst, the head of technical analysis at Blockfyre, recently shared the chart below. It shows that the cryptocurrency has recently formed two bullish macro technical signs: ETH has broken out of a 715-day range while it is forming a series of higher highs and higher lows, suggesting the formation of an uptrend.

Not to mention, Ethereum’s 2.0 upgrade is slated to begin in the near future with the rolling out of phase zero. This may drive capital into ETH as investors seek to capture the yield offered in the coin.

“$ETH Notes on Chart: 2.0 Coming, HH + HL on top of 715 day range, break PoB to ATH’s. You’re bearish? Buy + Hold + Wealth Drop the LTF bias.” 

Chart of ETH's price action over the past three years with analysis by crypto trader and head of TA at BLockfyre Pentoshi.
Source: ETHUSD from TradingView.com

Competition Abound?

While Ethereum may be strong in its own right, the coin may face competition from other blockchains that could suppress ETH upside.

According to a Bloomberg article released on Oct. 17, Polkadot is an Ethereum blockchain killer. It is a recently-launched blockchain network that uses a network of sidechains that are customizable by developers to facilitate a much better user experience than its predecessor.

Outlier Ventures reported that the number of Polkadot developments has begun to increase, boding well for the network.

“While developer interest in Bitcoin and Ethereum has declined, the number of monthly active developers building on Polkadot increased by 44% in the 12 months ended in May, the report found.”

It is currently unclear how much of an effect a rising Polkadot will have on ETH. But it’s worth noting that Ethereum has faced some setbacks over recent months as the cost of transactions has increased rapidly and as the high block times have begun to limit some development.

Photo by Florian Olivo on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
3 Technical Trends Show Ethereum Is On Track For Strong Growth in 2021





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The Crucial Level to Watch as Ethereum Prepares to Shoot Toward $700

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  • Ethereum topped out dramatically in August when it hit $490, then crashed.
  • The coin currently trades for $370, 25% below those highs.
  • Analysts think that Ethereum could soon shoot higher as the macro trend remains bullish.
  • ETH will need to hold a crucial support level in the $300 range, then decisively surmount the year-to-date highs around the high-$400s.
  • Institutions are getting bullish alongside technical analysts.
  • Grayscale Investments recently revealed that it has accumulated 2% of all of the cryptocurrency in circulation.

Ethereum Could Shoot Toward $600-700: Here’s Why

Analysts think that Ethereum is on track to shoot towards $600-700 in the coming months and years as long as it holds pivotal support in the vicinity of $300.

The head of technical analysis at Blockfyre, a crypto-asset research company, recently said on the matter:

“ETH price discovery. 2021 Glaringly obvious only the patient will win but there’s trades to be taken within… $700 likely isn’t too far off. Eth 2.0 Phase 0 within a week could be one of many bullish catalysts although I just don’t think it looks as bullish as BTC. I refuse to not have it in my portfolio. It is the lifeline of alts, and has massive changes ahead.”

Chart of ETH's price action over the past few years with analysis by crypto trader and the had of TA at Blockfyre, Pentoshi.
Source: BTCUSD from TradingView.com

This bullish sentiment has been echoed by other analysts.

One analyst noted that a macro analysis of Ethereum suggests that as long as $350 holds, the coin will double to $700 over time. 

Institutions Accumulate ETH En-Masse

There is an institutional aspect of the ongoing Ethereum market trend, boosting the chance the asset moves to the upside.

Barry Silbert, founder and CEO of leading digital asset investor the Digital Currency Group, recently said that Grayscale Investments owns 2% of all Ethereum now. This means that the firm holds $800 million worth of the coin, or approximately 2.2 million ETH.

Institutions are accumulating Ethereum as the decentralized finance (DeFi) revolution grows. Spencer Noon, head of DTC Capital, says on the matter:

“My read on #DeFi after speaking with instl investors, fund mgrs, OTC desks, and FOs over the last few wks: The herd is coming. They’re excited about DeFi but new to it, so they’re buying $ETH first.”

Analysts think that continued institutional investment in ETH will drive prices dramatically higher.

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Price tags: ethusd, ethbtc
Carts from TradingView.com
The Crucial Level to Watch as Ethereum Prepares to Shoot Toward $600





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Ethereum

Price analysis 10/16: BTC, ETH, XRP, BCH, BNB, LINK, DOT, ADA, LTC, BSV

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Bitcoin and altcoins must rebound off their immediate support levels to recapture bullish momentum and resume the uptrend.



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