Yearn.finance’s management token, YFI, blazed a trail by surpassing the price of Bitcoin (BTC). With this move, YFI succeeded in becoming the first altcoin to cross Bitcoin. The crypto currency has increased by 41 percent in the last 24 hours, reaching $ 15,469.
Of course, after stating that a single YFI is more expensive than a single BTC in this news, it should be clarified that the overall market value of Bitcoin continues to be much larger. It is also necessary to say that other tokens are priced above Bitcoin, but YFI has significant trade volume.
While the overall market cap of Yearn.finance’s governance token (YFI) is more than that of industry giant Bitcoin (BTC), the explosive growth of decentralized finance (DeFi) and the recent turnaround in BTC is that a single YFI’s BTC made it bigger than. According to CoinMarketCap data, BTC was trading at $ 11,859 at the time of writing.
A 4-Week Altcoin
YFI only launched four weeks ago and was initially trading at just $ 32. Investors deposit selected digital assets into YFI, which then automatically executes various DeFi trading strategies with ROIs of up to 95% – the platform receives 5% of the return as commission. The total value locked down per year (TVL) was $ 9.3 million on July 18, but rose to $ 600 million on Tuesday. According to DeFi Pulse, this figure also exceeded $ 675 million at the time of writing. As a governance token, YFI can be staked to its owners to give a vote on the direction of the protocol. But only 30,000 YFIs were created, so despite the price increase, the market cap is now just under $ 400 million – BTC’s is under $ 218 billion.
What Does YFI Do?
Using this product, Yearn.finance users can use the DeFi network much more effectively. Yearn.finance automatically tells you how much revenue you will earn from which project and how much processing fee for which project.
The Yearn.finance ecosystem includes the following products:
- finance – for-profit lender (live) to optimize lending yields
- finance – Leveraged stablecoin transactions (testnet)
- automatic capital settlement (testnet) for finance – 0
- exchange – One-sided automatic market maker (live)
- finance – credit delegation vaults (testnet) for smart contract to smart contract loan
- Annual finance ecosystem controlled by YFI token