Yearn.finance’s governance token, YFI Price jumped 40% to an all-time high on Tuesday, joining the latest rally of cryptocurrencies linked to the fast-growing decentralized finance sector known as DeFi.
In only 32 days, Yearn Finance Total Value Locked increased from $2 billion to $4 billion. It has increased the price by 30% in just a few days. As of this writing, YFI is trading for roughly $83,500 after gaining 23% in 24 hours.
Yearn’s followers had no idea on why there was a sudden surge. Yearn Finance was soaring because a developer developed Woofy, a dog token that can be exchanged for YFI tokens at a million-to-one ratio.
Yes, that’s right Yearn Finance has unveiled a new token named WOOFY in an effort to cash on the buzz around meme coins like DOGE, which Elon Musk recently upheld.
Lead developer “banteg” revealed some information about the latest meme coin in a tweet on May 12,
Woofy’s has a bridge feature that allows you to convert your YFI holdings to another token at a 1:1 ratio. Speculators, however, who are unfamiliar with tokenomics, may have thought WOOFY would be priced similarly to YFI.
WOOFY appears to be dividing the community, with Twitter user “BrotherMuozone” concluding that it appears to be “an unsavoury attempt to milk vale out of the new suckers in the market,” adding that the experiment actually comprises “a brilliantly timed and themed ‘unit bias a/b test’” offering insights into whether traders prefer tokens with a larger circulating supply and lower fiat price versus tokens with a smaller circulating supply and higher fiat price.
As of this writing, WOOFY last changed hands for $0.08.