Yearn Finance Launches “Dogcoin” Woofy, YFI Hits All-Time High of $95,000

Is it a beautiful misunderstanding or a misleading ulterior motive?

Yearn Finance Launches "Dogcoin" Woofy, YFI Hits All-Time High of ,000

Abstract.

Yearn Finance is running a dog meme hype.

YFI holders can mint Woofy tokens.

Speculators have pushed YFI to a new all-time high of $95,000.

To capitalize on the dogcoin meme craze, DeFi aggregator Yearn Finance has launched its own canine token, Woofy.

In a May 12 tweet, Yearn Finance’s lead developer “banteg” shared some vague details about Woofy: ” Wifey (the blue dog in the picture with the eye patch and cape, or YFI)’s blue dog companion ( Woofy, the dog sitting in the hat, uses a special Woof technology that allows the two to switch in both directions. This means you have access to both simple dog coins and your favorite DeFi blue chips.”

After the news came out, farming farmers and speculators rushed to buy Yearn Finance’s native token, YFI, to qualify for the rumored airdrop of the new token, woofy. However, in the end, there was no airdrop and it was more just an exaggerated social media spin. Of course, this is not the first time in the Yearn Finance community that we have seen community members rush in before they have a clear understanding of the token’s functionality and release mechanism.

It is understood that Woofy’s offers a bridge feature that converts YFI into another token at a 1:1 equivalency ratio. However, speculators have failed to understand the token economics of this and may think that WOOFY’s price will be similar to YFI’s.

One industry source said there has been concern that such a unit bias (unit bias) is detrimental to speculative traders due to the low supply (36,666 in total) and the high price of YFI.

“Woofy solves this problem with a two-way peg to YFI, and it is cheap enough that it can be unlocked at a ratio of 1:1 million. owners of YFI will be able to build $WOOFY (and vice versa), and given the hype surrounding dogcoins in the market, people seem to be excited about the potential of WOOFY, and the price of YFI is thus went up. At first glance, this looks like a shady attempt to milk the market for value from new speculators. However, it was really just a well-timed ‘unit conversion a / b test.”

Babbitt found the official link to the woofy.finance page and can see that the exchange ratio between the two sides is one YFI for one million WOOFY. there is an option to swap woof and unwoof in both directions respectively. As shown in the figure below.

Yearn Finance Launches "Dogcoin" Woofy, YFI Hits All-Time High of ,000
Yearn Finance Launches "Dogcoin" Woofy, YFI Hits All-Time High of ,000

YFI Price Hits All-Time High
Whether intentionally or not, speculators pushed the YFI price to an all-time high of just over $95,000 on the morning of May 12. However, at press time, it had fallen back to $82,000.

The 7-hour-old WOOFY token started at $0.095, but has fallen to $0.084 in the first few hours since its launch. According to CoinGecko, there are less than 250 million tokens in circulation.

In addition to rubbing off on dogcoin, the rise in YFI’s price may also be attributed to its record revenue in April. The platform generated $5.44 million in revenue in April, a 67 percent increase from the previous year. The developer says this means the platform’s annual revenue is about $65 million.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/yearn-finance-launches-dogcoin-woofy-yfi-hits-all-time-high-of-95000/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-12 17:45
Next 2021-05-12 17:55

Related articles