Wintermute responds to market manipulation accusations and revises loan proposal submitted to Yearn.

According to BlockBeats news on August 26th, Wintermute, a cryptocurrency market maker, has received widespread attention and criticism for its controversial proposal "YFI Wintermute Loan and CRV Plan" submitted to the Yearn Finance community. The proposal involves Wintermute depositing CRV tokens into Yearn to increase liquidity and requesting an unsecured loan of 350 YFI tokens worth approximately $2.1 million for its market-making activities. This proposal has sparked intense debate within the industry and highlighted long-term concerns related to market manipulation, market-making transparency, and overall integrity of cryptocurrency trading practices. Wintermute's CEO, Evgeny Gaevoy, refuted the allegations of market manipulation and stated that the proposal submitted to Yearn Finance is a "win-win" for both parties. Although many critics of the proposal believe that the 0.1% YFI loan interest rate is low, it is normal for market makers. Gaevoy explained that the 0.1% tax rate is only for "legal and accounting" reasons and should actually be considered as 0%. He stated that Wintermute typically obtains interest-free token loans for market-making purposes, or uses call option structures to buy tokens at a predetermined price at the end of the loan. Wintermute needs a low interest rate because it may not have the opportunity to use the 350 YFI token loan for market-making. In response to opposition to its proposal, Wintermute has revised its proposal, including using a multi-signature wallet to hold its planned CRV token collateral in Yearn, and proposing to extend the CRV token collateral period in Yearn from the original 6 months to 12 months, matching the YFI token loan period. In addition, the proposal also added an option to terminate the loan early and reclaim its CRV tokens after 6 months. It is worth noting that another cryptocurrency market maker, DWF Labs, has submitted a similar proposal to the Yearn Finance community today, planning to apply for a YFI loan of 350 tokens and purchase up to 3 million CRV tokens to vCRV. However, DWF Labs' proposal is superior to Wintermute's original proposal in terms of YFI loan interest rate (1%) and CRV token collateral period (12 months), or is intended to compete with it.