Overview and on-chain highlights of the recent YFI fall

Nov 19, 2023

SOC Team

Here is an overview and on-chain highlights of the recent YFI fall:

A. The impacts:

YFI suddenly dropped by more than 40% within hours yesterday
Approximately $250M in market value vanished afterward
Around 60% of YFI's recent gains were cleared away
96.3% of YFI Open Interest on dYdX (around $60M) was wiped out. While YFI is very rarely traded on dYdX normally, the recent spike in its price has pushed the Open Interest to peak at nearly $62M (refer to Coinglass here).

Fig 1. YFI suddenly dropped by more than 40% within hours yesterday.

Fig 2. Most of the YFI Open Interest on dYdX was wiped out in the past 24 hours.

B. The potential cause:

Antonio Juliano (@AntonioMJuliano), the dYdX's founder, suspected "an intentional market manipulation attempt by a well-capitalized actor(s)" to target the large OI on dYdX.
Notably, the "actor" managed to withdraw a large amount of USDC from dYdX right before the price crash. He/she also attempted unsuccessfully to attack the dYdX SUSHI market two weeks ago.

Fig 3. Antonio Juliano, dYdX's founder, posted about the potential cause of the price drop on X (formerly Twitter).

C. The on-chain highlights:

1. Two addresses managed to sell YFI before the price plummeted:

- Address 0x7d5 sold 96 YFI for 636 ETH ($1.24M) at $12,962:

- Address 0x8A0 sold 37 YFI for 208 ETH ($412K) at $11,148

Fig 4. Two addresses sold 133 YFI for 844 ETH ($1.65M) before the price tumbled.

2. The top 15 YFI holders (including exchanges) still hold 50.4% of the total supply, indicating highly concentrated token distribution.

Fig 5. The current top 15 holders of YFI (including exchanges).

3. The Long/Short (24H) ratio is currently less than 1, indicating that traders are making more short positions on YFI.

Fig 6. The current Long/Short ratio of YFI.

#yearn finance

#yfi

#plummet

#price

#fall

#dydx

#open interest