The platform’s own token for automating profitable farming in the decentralized finance (DeFi) space, Yearn.finance, surged by almost 40% this Wednesday and climbed to a new all-time high above $ 90,000.
In the previous phase, YFI lagged behind most DeFi tokens, however, as a result of the latest jump, it was able to surpass Bitcoin at the unit price. At the same time, YFI’s capitalization is only $ 2.8 billion against $ 1 trillion for bitcoin due to a much lower emission.
“The rally was to be expected, given the token’s lag behind the leading projects in the DeFi space,” said Denis Vinokurov, head of research at Synergia Capital.
According to DeFi Pulse, Yearn.finance has more than doubled its assets on the Yearn.finance platform since the beginning of April to $ 4.1 billion. During the same period, the total assets of the DeFi space increased by 70%.
The popularity of Yearn.finance in the DeFi market explains the rapid growth of its rate, according to the co-founder of the market making company Rich Rosenblum.
“This is Tesla’s unmanned investment management. Cryptocurrencies move much faster than cars and follow each other, ”he said.
There is another, probably even more compelling reason for YFI’s growth today. According to Twitter user BrotherMuozone, the lead developer of Yearn.finance, nicknamed banteg, has figured out how to attract users to the project using his own variation of Dogecoin.
1/5 So why is $ YFI price up so much? This blue chip with strong fundamentals is pumping because….a dog coin.$WOOFY (or $WUFFY)
This is thanks to the mad scientist, @bantg pic.twitter.com/pBkduuo1zC
— BrotherMuozone (@BrotherMuozone) May 11, 2021
“There have always been concerns that the high cost of YFI would be a repelling factor for speculative traders,” writes BrotherMuozone. – Many of them are looking for coins below $ 1, and YFI seems too expensive for them. Now pair that with the recent fever around Dogecoin and Shiba Inu. Banteg came up with the idea of launching its own variation of Dogecoin with two-way peg to YFI, but with a low price. Thus, WOOFY will be issued pegged 1 million to 1 YFI. This means that 1 WOOFY will cost $ 0.076. ”
Banteg has actually started building WOOFY, as evidenced by the related section in the Yearn.finance Github repository. It is not known if there will be an airdrop for YFI holders, but the token specifications already contain the “woof” and “unwoof” functions for converting YFI to WOOFY and vice versa.
“The ratio is always 1 YFI = 1,000,000 WOOFY. Woofy is always fully backed by YFI, ”writes banteg.
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