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Speculators pushed YFI prices to record highs.
Original title: ” Yearn Finance launches “Dogecoin” Woofy, YFI hits a record high of US$95,000 “
Written by: Martin Young
Yearn Finance is hyping a dog meme.
YFI holders can mint Woofy tokens.
Speculators pushed YFI to a record high of $95,000.
In order to catch the meme boom of Dogecoin, DeFi aggregator Yearn Finance launched its own dog token Woofy.
In a tweet on May 12th, Year Finance’s main developer “banteg” shared some vague details about Woofy: “The blue dog companion of Wifey (the blue dog wearing a blindfold and cloak in the picture, ie YFI) (The dog sitting in a hat in the picture is woofy) The token uses a special Woof technology that allows two-way conversion between the two. This means that you can access simple Dogecoins and favorite DeFi blue chips at the same time.”
FOMO of YFI
After the news came out, plowing farmers and speculators bought Yearn Finance’s native token YFI to obtain the empty investment grid of the rumored new token woofy. However, in the end, there was no airdrop, more just an exaggeration of social media. Of course, in the Year Finance community, this is not the first time that community members have rushed in without a clear understanding of the function and release mechanism of the token.
It is understood that Woofy’s provides a bridge function that can convert YFI into another token at an equivalent ratio of 1:1. However, speculators fail to understand the token economics, and they may think that the price of WOOFY will be similar to that of YFI.
An industry source said that there have been concerns that due to the low supply (36666 pieces in total) and the high price of YFI, such unit bias is not conducive to speculative traders.
“Woofy solves this problem through a two-way link with YFI, and its price is low, so it can be released at a ratio of 1:1 million. YFI owners will be able to make $WOOFY (and vice versa), given the market With the Dogecoin hype boom, people seem to be excited about the potential of WOOFY, and the price of YFI has risen as a result. At first glance, this looks like a shameless attempt to squeeze the value of new speculators in the market. However, this It’s actually just a’unit conversion a/b test’ at the right time.”
Babbitt found the page of woofy.finance in the official link. It can be seen that the exchange ratio between the two parties is one YFI to 1 million WOOFY. You can choose woof and unwoof for two-way exchange respectively. As shown below:
YFI prices hit a record high
Whether intentionally or unintentionally, on the morning of May 12th, speculators pushed the YFI price to a historical high of just over US$95,000. However, at press time, it has fallen back to $82,000.
This “born” 7-hour WOOFY token starts at $0.095, but it has fallen to $0.084 in the first few hours after listing. According to CoinGecko’s data, there are currently less than 250 million tokens in circulation.
In addition to the popularity of Dogecoin, the rise in YFI’s price may also be due to its record revenue in April. The platform’s revenue in April was US$5.44 million, an increase of 67% from the previous month. According to the developer, this means that the platform’s annual revenue is approximately $65 million.
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