It seems almost impossible, but that’s what happened over the weekend: the YFI token of the Yearn Finance protocol, which has recently activated its governance, marked an increase of 7600% in just under 24 hours.
With governance live, we hand over decision making to the public, until governance is stabilized and all controls are codified we will help in an executionary role. We will continue developing our product suite and include further control mechanisms.
— yearn (@yearnfi) July 19, 2020
The token had started from a low of 31 dollars on Saturday, July 18th and the next day it already broke through the $2000, reaching $2374.
Looking at its pool on curves.fi it’s possible to notice the incredible numbers of this token, registering a daily volume of 55 million dollars.
IMMAGINE —————————————
The platform allows trading with leverage up to 1000x with an initial pre-paid fee, or 250x without any initial fee, allowing to trade DAI, USDC, USDT TUSD and sUSD.
It is interesting to read how the team defines its own token, which is considered “valueless”.
“In further efforts to give up this control (mostly because we are lazy and don’t want to do it), we have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value. There is no pre-mine, there is no sale, no you cannot buy it, no, it won’t be on Uniswap, no, there won’t be an auction. We don’t have any of it”.
How to earn YFI
Earning YFI tokens does not require much effort since it is enough to provide liquidity to one of the platforms of the protocol, which are:
- yearn.finance, a system that automatically adjusts to optimize the yield of the lending, already active;
- ytrade.finance, where it is possible to leverage with stablecoins, even if it is still in testing phase;
- yliquidate.finance, 0 capital automated liquidation for Aave. The system is in testing phase;
- yswap.exchange, a single-sided AMM (Automated Market Maker), already active;
- iborrow.finance, Credit delegation vaults for smart contract to smart contract lending. This product is in testing phase;
- ileverage.finance, Leveraged DAI / USDC vault shorts, although it is currently disabled.
Surely the euphoria for decentralized finance (DeFi) is doing its part and is also giving value to tokens that even the team itself considers useless.
Many people are wondering whether DeFi is going to be the next bubble in the crypto industry, since as soon as a governance token is launched, the crowd rushes to get it, as it happened with COMP, with the BZRX token, but also with the InstaDapp protocol.
