The big boys in crypto markets like Bitcoin, Ethereum, and XRP may be tumbling today, but DeFi tokens are still on fire. Five of the six best-performing tokens in the top 100 are related to DeFi, and there’s a good reason for that.
Enter the yam
A new yield farming opportunity called Yam Finance has been introduced, promising huge returns and a revolutionary and fair finance farming ecosystem. Since launching late Tuesday, August 11, yield farmers have funded DeFi tokens to stake on the platform and earn YAM.
According to the official blog post, Yam is an experimental protocol with an “elastic supply; Token that aims to ultimately seek price stability and a peg to the US Dollar. With 5 million tokens available, an allocation of 10% is taken and put into a stablecoin called yCRV, which is locked in a treasury for protocol management purposes.
Two million of these tokens went live yesterday and are available to users participating in eight pools on the platform. Available staking tokens are COMP, MKR, LEND, LINK, YFI, SNX, wBTC, and an ETH/AMPL Uniswap v2 pool, and it’s no surprise that most of them are currently pumping.
The remaining 3 million tokens will be gradually released and earned by providing liquidity from the previously earned YAM tokens.
The token itself went from that “zero value” to over $125 before correcting it by 50% and according to YAMalytics the total value staked in these pools is now over $300 million.
Yam TVL. Source: yam.zippo.io
The most popular pool at the time was the packaged Ethereum pool Weth Homestead, which had accumulated over 30% of the total. LINK was second with 22.7% of the total and YFI was the third most popular.
Of course, the Bitcoin maximalists and crypto naysayers were critical, with some calling it a scam, Ponzi, and pump and dump. Yam Finance itself, to its credit, has exercised caution with its unverified smart contracts.
DeFi tokens on fire
Since the first wave of token releases was based on staking other tokens, today they have surged in price as TVL is pulled from other DeFi protocols.
Compound Finance token, COMP, has pumped a whopping 30% to over $230, while Aave’s LEND is up 16% and MKR is up over $700 with a 14% gain. Synthetix’s SNX is also up 8% on the day and Ampleforth’s AMP is up 13%.
All of this happened while crypto assets were mostly in the red and the markets dumped $15 billion in the last 24 hours.
This article was first published on August 12, 2020.
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