How Ethereum’s Daffy Darling YFI Reaches $ 1 Billion in 2 Months


Yearn.finance’s original governance token, YFI, is now the second largest decentralized finance (DeFi) coin in the cryptocurrency market. Only one and a half months after its launch, its market capitalization has crossed $ 1.1 billion.

Four key components contributed to the year’s rapid success. Finance: Unique supplies, an active community, a respected developer, and innovative products.

Unique Supply, No Premine, decentralized

The process of the launch of yearn.finance attracted the attention of many DeFi enthusiasts right from the beginning.

Andrew Cronje, the lead developer behind the year. Finance, rebranded with a suite of products, and iearn.finance relaunched. Cronje released YFI with no premier, just a fixed supply of 30,000 tokens and no founding reward.

The transparent and decentralized launch of yearn.finance, which gives all governance rights to YFI token holders, made the DeFi protocol unique.

“The lead developer behind it, Andre Cronje, decided that he would create a $ YFI token, and with it passed control / governance of the entire yearn.finance suite of tools. Having the power to award himself an ex-mine or founder award Despite this, they chose to keep zero tokens for themselves, ”explained Daryl Lau, a contributor to Derib Insights.

A token of intrigue behind YFI was its token. YFI has a fixed supply of 30,000, due to which the price of each person exceeded bitcoin. But, in terms of market capitalization, even at a price point of around $ 38,300, its market cap is less than $ 1.2 billion. In contrast, Bitcoin has a market cap of $ 216 billion.

Respected developer, fast shipping speed

Cronje, despite not receiving any major financial incentives from the YFI launch, is constantly shipping new DEFI-related products.

Recently, as an example, yearn.finance announced the launch of yinsure.finance.Yinsure, DeFi will provide insurance coverage to users.

The developer has collaborated with various top developers and executives in the cryptocurrency industry. On August 28, Cronje hinted at a collaborative project with Sam Bankman-Fried, CEO of FTX, one of the largest derivatives exchanges in the cryptocurrency sector. Bankman-Fried is also the chief executive of Alameda Research, a cryptocurrency trading firm and OTC desk.

“Looks like the cat is out of the bag, but just that there is some hope management, it’s a long roadmap we’re working on, so it won’t be anything soon. But there will be something very sexy in the future said.

The confluence of a low and unique supply model, a transparent launch, and an active developer eventually led yearn.finance to evolve into one of the largest DEFI protocols in various metrics.

According to data from DefiPulse, the total value is over $ 790 million, locked into the yearn.finance protocol. It is right behind Synthetics, Age and Maker.

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