Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Ethereum Forum => Topic started by: Hugo Barbosa on September 03, 2020, 03:12:37 PM
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Recently, after the launch, YFI attracted a lot of attention from investors. In a very short time, its price surpassed Bitcoin, reaching a peak of $44,000, more than double the price of Bitcoin at its peak. This is the first time bitcoin has been surpassed by other tokens since the blockchain was created in 2009. What's the reason behind YFI's price surge? Which token will break $100,000 first, YFI or Bitcoin?
YFI is the token of Yearn, as a reward to the people who use the agreement, yearn added the liquidity mining function into it. The original price of YFI is 0, and the community will decide the subsequent price of the token. Yearn belongs to the DeFi project, it can be seen as a built on the Ethereum smart banking. As the interest rates of different pools in the DeFi Liquidity Mine project are so volatile, and the manual selection of a higher annualized pool is complicated, so Yearn simplifies the process. By interacting with smart contracts, we can look at the annualized returns of different lending platforms and then automatically allocate funds to match users to the pool with the highest returns through Yearn.
Currently, there are many mobile mining platforms, such as Aave, dYdX, Compound, Nuo, Fulcrum, and so on. However, each platform has standardized interest rates, different quote mechanisms on the chain, different annualized returns, and as providers of liquid funds, they certainly want to put their money where the interest rates are highest. And Yearn is acting as a leading aggregator, interacting with smart contracts to see the annualized returns of different lending platforms, and then redirecting users' money to the platforms with the highest annualized returns. The process could also lower gas charges so that no trace could ever return, rather than having 200 users pay once for every liquidity provided.
Since Yearn has been able to generate higher returns for users who supply mobile mining, its YFI was immediately snapped up by the communities. YFI issued only 30,000 copies, a very limited number, and all of them were snapped up when it was launched on July 26.
After YFI was issued, to ensure that liquidity would not be withdrawn on a large scale, some community members put forward a proposal to increase the weekly issuance volume of each mining pool, but it was not approved due to insufficient participants. So, a hard fork was initiated by the community members in favor of the proposal, and a new project, YFII, was created with essentially a similar name as YFI. After the launch of YFII, driven by the YFI price, it soared as high as $9,489, nearly becoming the second token that to surpass the price of Bitcoin.
After understanding the value of YFI and the current price, many people believe that YFI will be the first to break through $100,000 before Bitcoin. Firstly, DeFi attracting a lot of institutions and individual investors to jump in the pool. Secondly, the total circulation of YFI is only 30,000, which is one of the 70 percent of the total circulation of Bitcoin, making it easier to change the market direction. However, investors who have experienced several super bull markets are preferred Bitcoin. In the past 10 years, BTC is the best investment products, in total, the price increased by more than 600,000 times, and this year is the third time that BTC halved in half, according to the market analysis of the first two halvings, BTC will be in a surge in the next few months.
Bitcoin halved for the first time, doubling its price 100-fold. The second time after it has halved, the price increased 30-fold. At that rate, this time, bitcoin's halving is expected to rise tenfold, or more than $100,000, so now is the perfect time to buy bitcoin.
However, buying Bitcoin ETF (BTC3X) is better than buying BitOffer Bitcoin futures. It adds 3 times of leverage based on futures, and also adds intelligent dynamic mechanism and fund compound interest calculation. The yield starts from 3 times the lowest and can reach up to 17 times the highest. This means, when the Bitcoin gets surge ten times, a Bitcoin ETF (BTC3X) could rise as much as 170 times over the next few months, making it a much cheaper bet than buying cash.
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Good information, very little is known about the YFI token, so a plus in karma. DeFi projects really rocked the entire cryptocurrency and gave a powerful boost to the growth of the entire cryptocurrency market. I have no clear-cut attitude to the rise in the prices of DeFi projects, in particular, the YFI token. The projects seem to be useful with a good product. Only the price exceeds all reasonable limits. This is what really confuses me. So far, those who invested in YFI at the first stage of the appearance of this token have a large profit. However, no one knows what will happen next with the price of this token. Many reasonably doubt that its such high price will last long. Well, let's see what happens next.