Yearn.finance is a decentralized finance (DeFi) digital asset management platform built on the Ethereum network to optimize the yield rate of cryptocurrencies, through crypto lending and trading services.
Within this platform, the tokens that investors deposit to yearn.finance will be converted to yTokens, which are periodically rebalanced and aggregated through lending services Aave, Compound, and Dydx to provide the best price for traders.
On May 12, amid the hype caused by Elon Musk’s endorsement of Dogecoin (Doge) and SHIB token, Yearn Finance developers launched a new token called WOOFY. This token is interchangeable with yearn.finance’s governance token YFI.
A Yearn developer named “Banteg” introduced the concept of WOOFY on Twitter and said:
“The blue dog companion token of Wifey utilizes special Woof technology which allows two-way conversion between the two. That means you can be exposed to a lighthearted dog coin and the DeFi darling blue chip at the same time.”
Today, Yearn.finance official announces their yCRV & y3CRV vaults are migrating from v1 to v2 to earn a higher yield.
Amid the hype of meme coins like Doge, YFI set a record high this morning, spiking to $95,000. However, it has since pulled back a bit to trade at around $83,000 at the time of writing.
On their end, memecoins currently have retraced from their highest price point. Dogecoin is currently trading at $0.51, which is about a 30% retracement from its all-time high of $0.74. As for SHIB, the token retracted by 25% and is currently trading at $0.00002937.
According to DeFi Pulse data, Yearn.finance ranks as the 10th largest DeFi protocol, with a total locked value also setting a new record high of $4.36 billion today.
Investors may be surprised by the expensive price of YFI, which is higher than Bitcoin, which is priced at around $56,868 at the moment and is the largest cryptocurrency, with a market cap of $1.06 trillion. The reason why YFI token is so expensive is mainly due to its limited circulation supply.
According to CoinGecko, YFI has a cap of approximately 36,000 tokens. Currently, it has a market capitalization of about $3.2 billion, and as demand for YFI goes up, its price will too.