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While DeFi tokens such as Yearn. Finance and UniSwap introduced a totally new landscape with their decentralized financial products, a preposterous trend of launching food tokens took off alongside such solid projects. Food-themed coins became a theme for a brief period during the DeFi explosion and developers around the world were quickly introducing these food-meme protocols, attracting capital from across digital asset space. Investors were quickly drawn into the allure of earning high interest and they caved right into these unproven DeFi tokens.
However, such a trend quickly reached saturation as many of these tokens were basically copy-pasted protocols from the likes of Yearn.Finance and SushiSwap. The situation became worse when the apparent ‘bubble’ burst and most of these food tokens de-valued by more than 50%. For example, Hotdog, one of the many food-themed projects, shaved over 99% of its value within minutes.
Such incidents of ‘rug-pull’, where assets were dropping more than 90% of their value became common, and DeFi started to lose a little credibility. The idea of decentralized finance applications was extremely powerful but these food-based token were driving its reputation to the bleachers.
Now, keeping in line to restore the application nuance of DeFi, the space might need a reliable form of DeFi tokens that are backed with top-notch digital assets. YFSwap and BITTO are currently bringing forward such a pair of DeFi tokens that are top versions of legacy assets such as Bitcoin and Ethereum.
Why YFBTC and YFETH are better than food-DeFi tokens?
YFBTC and YFETH will be the DeFi versions of legacy coins Bitcoin, Ethereum and the major objective of these assets are to remind the userbase that reputed DeFi tokens representing successful digital assets can be the ideal way forward.
The key difference between YFBTC, YFETH, and the rest of these food-themed tokens is the supply. Pizza, an EOS-based DeFi token has over 10 million in supply with close to 1 million circulations already. In comparison, YFBTC, and YFETH will only have a supply of 21,000 and 75,000 respectively.
The fact that these DeFi tokens have a limited and small supply, its value will persevere from productive scarcity. As these tokens follow the BTC and ETH mining reward protocol, they can be an improved version during any future DeFi trend.
Additionally, only 10% of the YFBTC and YFETH were under circulation on 15th October, and the rest 90% can be farmed via the process of yield farming. However, farming YFBTC of YFETH will create an equal playing field for its users in which both the DeFi tokens can be mined using Bitcoin, and Ethereum, Stablecoins respectively, making it fair and possible for everyone to start their journey in the DeFi space with BTC and ETH.
While the food-DeFi tokens emulated the dark period of ICOs from 2017, YFBTC and YFETH have the potential to entrust a level of reliability in the DeFi space. There will be no rug-pulls, no drop in liquidity within minutes, and consistent yield farming rewards for its userbase without major issues.
Considering YFBTC and YFETH are based on Bitcoin and Ethereum, they are likely to better a chance at succeeding, following in the footsteps and working protocol of proven cryptocurrency projects.
For more information, please visit the official medium page of YFSwap.
Disclaimer: This is a paid post and should not be considered as news/advice.
Image Credit: Refer to Source
Author: Refer to Source Akshay KS
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