On May 11th, five of the top 10 liquidity pairs on Uniswap were dog-based coins, amounting to $1.55 billion in volume over the past 24 hours.
On the same day, Yearn Finance released WOOFY, a coin with a bidirectional peg to the YFI token, pushing the token to an all-time high of USD 85,003.30 at the time of writing.
Yearn Finance, known for the crypto hedge fund, shifts funds between protocols such as AAVE, Compound, and dYdX automatically as interest rates change between them. By depositing a stablecoin, a user will, e.g., receive yUSDC, which is a yield bearing USDC token issued by yearn finance.
The YFI token is limited to a maximum supply of 36,666, and serves the purpose of a governance token, which means that it can be used to vote and receive cash flows from fees earned in the protocol. However, the YFI token has been seen as “too expensive” for most investors, as it was trading at five figures shortly after its listing.
The WOOFY coin was released with a 1 million to 1 supply to YFI, changing its price and making it a “more affordable coin”. Holders of YFI can now mint their tokens into WOOFY and vice-versa.
Over the last few months, retail investors have been very focused on purchasing coins that are “cheap” or low in dollar value, not knowing that they can buy parts of a coin. YFI has therefore decided to accommodate these confused investors. At the same time, they bring a great deal of attention to a very impressive and useful project.Read more