On May 12, YFI broke $95,000 in a short period of time and rose nearly 100% in 24 hours.
With no major project progress in Yearn, what is behind YFI’s surge?
We found out that on May 11, banteg, the core developer of Yearn, teased the upcoming release of a new project.
On May 12, banteg officially announced the release of its new project Woofy.finance.
What is Woofy? banteg explained: Woofy is a MEME project that allows two-way exchange of YFI and WOOFY tokens with a rigid exchange ratio of 1:1 million. This means that users can enjoy the fun of MEME while also enjoying the dividends of DeFi’s “blue chip”.
For Woofy, SushiSwap co-founder 0xMaki tweeted that SushiSwap just recently passed a proposal to invest 2% of SushiHOUSE treasury management funds in DeFi assets, and he believes that currently using 1% of those funds to purchase WOOFY tokens and the rest to be allocated to the Yearn Eco Index is a wise decision in the current market environment The decision is a wise one in the current market environment.
Hayden Adams, founder of Uniswap, also said that the funding rate for the WOOFY token to go live with the Uniswap V3 version also seems to have been chosen wrongly. Currently, the WOOFY token is live on Uniswap V3 with SushiSwap at about $0.086 a piece.
Regarding the surge in YFI’s coin price after the launch of Woofy, Twitter user BrotherMuozone analyzed that DeFi blue-chip tokens with strong fundamentals like YFI surged precisely because of their new dog coin fanin token, WOOFY.
He said that due to YFI’s extremely low token supply, individual token prices are so high that speculative traders fall into self-perception bias (Unit bias is a type of Cognition bias), which greatly reduces the desire to buy tokens. As a result, many traders are looking for cryptocurrencies below $1, and WOOFY may continue the MEME boom brought about by DOGE and SHIB.
In response, banteg has proposed a dog fanin concept token WOOFY that can anchor YFI in both directions, but at a price as low as dogcoin. yfi token holders can not only exchange for WOOFY tokens, but also exchange WOOFY tokens back to YFI tokens at any time at a ratio of 1 million:1.
The price of WOOFY tokens is also sure to perform well because of the recent crypto-fanin craze, which has driven up the price of YFI. But he said that at first glance, this may seem like an ill-advised attempt to extract value from a speculative trend in the market, but it’s really just a well-timed “cognitive bias test”.
And while the YFI wave is really driven by WOOFY, the user is right, but he should also consider the fact that Yearn’s product is actually undervalued.
Why do you say that? First of all, in terms of total locked-in funds, the TVL of Yearn recorded by major statistical sites such as DeFi Pulse, DeBank, etc. is severely shrunken compared to the actual, only a few hundred million dollars, but the real locked-in volume is currently over 4 billion dollars.
And, a large percentage of the money in Yearn is in the veCrv strategy pool, which, combined with Yearn’s own composite strategy, gives a real return on money that is even higher than the return on the strategy with Curve full boost directly.
It is worth noting that The Block data shows that while banteg tweets hinting at the launch of the new project, there are multiple large addresses accumulating YFI tokens with the aim of minting WOOFY. and for the WOOFY token, the two-way anchor YFI token price is bound to have a lot of arbitrage opportunities, we can also consider it as a 1:1 million split of YFI. Split, so the YFI price increase can also be explained.
So, is this surge in YFI a return to value or is WOOFY rubbing off on the fever of dog coin fanin? Deep Chain Finance believes that it is a good move to take advantage of the boom of the Lost Cause and let YFI be discovered again.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/yfi-doubled-in-one-day-because-of-a-dog/
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