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Is DeFi yield appetite rising again? Enso raises $5M as YFI hits new highs

The appetite for DeFi is rising again as blue chips are rally and yield-earning strategy-sharing platforms, like Enso, are on the rise.

Enso, a platform where users can share yield-earning strategies, raised $5 million on April 13 from top United States venture capital firms including Polychain Capital and Multicoin Capital.

Synthetix founder Kain Warwick, Aave founder Stani Kulechov, Dfinity chief operating officer Artia Moghbel and other prominent angel investors took part in the round.

The high-profile fundraising round comes as Yearn.finance's YFI token achieved a new all-time high above $50,000.

Why is the demand for yield-earning protocols rising?

Protocols like Yearn.finance are seeing significant demand once again as decentralized finance blue chips start to rally off the back of Bitcoin (BTC) and Ether (ETH) hitting record highs.

The appetite for high-risk, high-return plays is clearly increasing as the cryptocurrency market as a whole enters price discovery.

YFI tops yield TVL rankings. Source: Defi Llama

The term "price discovery" refers to a technical trend when the price of an asset or the valuation of a market hits a new all-time high.

From late February to mid-March, the total value locked (TVL) of DeFi asset management protocols dropped quite significantly, from $4.3 billion to $2.7 billion.

However, since late March, the DeFi asset management sector has begun to see renewed momentum, driving demand for protocols like Yearn.finance where users can earn yield on their assets.

YFI/USDT 1-day price chart. Source: TradingView

Naturally, the resurgence of asset management and yield-earning strategies in DeFi has led to a spike in venture capital interest.

Enso, for example, recently raised $5 million from a round led by leading venture capital firms such as Polychain Capital and Multicoin Capital, which have assets under management worth severa billion dollars.

Enso allows us...

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