The race for DeFi continues and the Ethereum-based governance token, YFI, reaches a historic high of $ 4,664
The YFI token appears to have caught fire in the midst of the DeFi craze due to its lucrative annual interest possibilities. In a very short time, it rose by 11,000%.
The token is part of the Yearn.finance ecosystem and the markets seem receptive to the project.
In a post from Medium of July 17th, Andre Cronje launched Yearn.finance and described all the DeFi services that the platform will offer:
- ytrade.finance (yet to be released)
- * .finance (yet to be released)
The platform comes with its native YFI governance token, which launched at $ 0 without any purchase or pre-mining options. The only way to get YFI is to invest in one of the platforms listed above.
Cronje expanded the system,
“Earning YFI is simple, it provides liquidity to one of the platforms above, puts outbound tokens in distribution contracts (we will provide an interface for that) and you will earn one value (controlled by governance) per day.”
He ended the press release with: “Don’t buy. Earn it.”
An incredible rally
The day after its launch, the token registered a 2,000% increase in value, while investors wanted to buy the new asset. This type of buying pattern can lead to big price drops, which seems to be happening.
However, there were incentives to purchase, as investors were promised an annual return of 1,000% through their incentive program, causing mass hysteria in the DeFi community.
The YFI token started out worthless and grew exponentially. At the time of writing, its historical maximum is $ 4,661.97, according to Coingecko – but it is currently valued at $ 3,146.50, well below its maximum price.
Agricultural production is a new space
Agricultural production is the recent price factor in the DeFi community.
The agricultural production business model is essentially putting cryptocurrencies to work in exchange for generous interest rates. The Compound token sparked the DeFi craze, raising the blocked value on Ethereum DeFi platforms to a record $ 2 billion.
In a recent interview, Vitalik Buterin, co-founder of Ethereum, expressed his concerns about agricultural production; Buterin believes that, at the current interest rate, agricultural production is highly unsustainable and, sooner or later, these interest rates will converge with the interest rates of traditional financial institutions.