Every time you check the price of yearn.finance, or $YFI, it seems to be markedly higher. Here’s a price from yesterday.
Then here’s a price from earlier this morning.
Just a few minutes later…
What in the world?
We’d Like to Say We Called It…
When we talked about the growth of the #DeFi space recently, we pinpointed three platforms that we think showed promise. Meta ($MTA) and Curve ($CRV) were the other two, and we locked in on those and plan on “setting it and forgetting it.” (Neither of those, we think, will see the type of exponential growth that has been shown by $YFI; supply may keep both of those coins from going crazy.)
(Here’s another screenshot, from 10:45 a.m.:)
Our reasoning for buying YFI was that it was being used to “lock in” assets, coupled with other coins — a cornucopia of options, it seems — to maximize yield. Token holders are rewarded with a share of the trading fees that is proportional to their holdings.
Let’s take a screenshot, do some math, and tease this out…
The fees — 0.3% of each transaction — appear to be somewhere around half of that figure on an average day. But our $1 million example would get its share based on its percentage of the liquidity provided, so numbers could actually be higher on an average day. (August 17, very quick scan, tells us that liquidity was only $6 million or so that day, so a $1 million stake would have netted $5934 in transaction fees.)
No Matter How You Slice It…
We posited a guess recently that the value of this platform, based entirely on a calculation of 30,000 tokens divided into $1 billion market cap, was $33,333 each.
Turns out, if the platform keeps getting used to trade with these insane volume levels, we may have to revise that upward.
Reminder: Do Your Own Research. Not investment advice. We’re not responsible for you gains or losses. We hope you have plenty of gains.
If you need to get started in crypto, visit this link to Coinbase and, if you make a qualifying purchase, we’ll both get a bonus. Enjoy.