Yearn Becomes 2nd Highest DeFi Earnings Protocol with $4.8 Million in Adjusted EBITDA in Q1 2021


DeFi bluechip, Yearn has released its comprehensive quarterly report, audited by a professional accounting firm, one of the first in the decentralized finance (DeFi) sector.

It revealed that Yearn had $4.8 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first quarter of 2021.

March accounted for $3.1 million of adjusted EBITDA, which was nearly as much as the fiscal year 2020, which included five months as the project was launched by Andre Cronje in mid-July 2020.

The key driver to this income was yVault revenue. The growth of yVault revenue exploded in Q1 2021, with 36 new yVaults launched in the quarter, including five new v2 yVaults. y3CRV was the most profitable vault for the quarter, generating $1.1m in revenue, while yUSD was previously the most profitable vault in 2020.

But the team anticipates Treasury yield-farming to contribute an increasing amount of revenue in the future, which is already earning $500k per month. “Based on the run-rate for the data as of March 31st, Yearn yield-farming is estimated to earn $5.5m per year,” estimates the report, noting that it is highly variable.

Yearn owns approximately $195m in assets, primarily YFI, held in Treasury, and owes $25m in debt obtained from two DeFi protocols, MakerDAO and Unit.xyz related to the Treasury yield-farming. Ryan Wakins of Messari noted,

“April’s revenues annualized puts Yearn at $50mm+ in revenue. $60mm+ if you add treasury farming activities and assume they’re constant from March. All organic. No token incentive.”

With these numbers, yearn is the second-highest earnings protocol in DeFi behind MakerDAO adjusted for token incentives and fourth after Compound and Sushi on taking token incentives into account.

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