Regardless of Dogecoin retracing from its all-time highs above $0.70, dog tokens continue to attract astonishing levels of popularity, with DeFi “blue-chip” Yearn Finance rising as arguably essentially the most distinguished staff searching for to money in on the canine meme coin craze with the launch of its WOOFY token.
However the YFI followers leaping in early might not have absolutely understood the coin’s utility which noticed the value sail into the stratosphere.
Whisperings of the brand new challenge started to flow into on Twitter over the previous 24 hours, with customers related to Yearn hinting at a brand new token known as WUFFY. Rumors of an airdrop for customers who posted an image of themselves being licked a canine and tag Yearn developer “Banteg” noticed a flood of face-lick images uploaded to Twitter.
— Max Crypto Headroom (@maxcryptohead) May 11, 2021
As is shortly turning into the norm for new releases from the Yearn team, followers locally raced to buy the brand new token earlier than absolutely understanding its utility.
Regardless of WOOFY’s sole operate being to supply a method to redenominate YFI holdings — with the Woofy Finance interface providing bi-directional YFI to WOOFY conversions at a ratio of 1:1 million, over-exuberant consumers pushed the value of WOOFY so excessive as to suggest YFI’s to be $1.5 million per token.
As of this writing, YFI is buying and selling for roughly $88,200 after gaining 43% in 24 hours.
$1.5 per woofy means you primarily paid $1.5million for $yfi
— Eth Lab ⟠ (@EthLaboratory) May 11, 2021
Neighborhood sentiment seems divided concerning WOOFY, with Twitter consumer “BrotherMuozone” concluding that wanting like “an unsavory try to take advantage of vale out of the brand new suckers out there,” including the experiment truly includes “a brilliantly timed and themed ‘unit bias a/b check’” providing insights into whether or not merchants favor tokens with a bigger circulating provide and decrease fiat worth versus a low provide and excessive token worth.
Though whether or not merchants select to hodl WOOFY or YFI is unfair, with merchants’ desire for one token over the opposite having no influence on Yearn’s total market cap, the introduction of WOOFY might scale back the volatility of YFI’s worth by creating arbitrage opportunities between the 2 tokens.
As of this writing, WOOFY final modified arms for $0.09, implying a roughly 3% premium over YFI.
In response to Dextools, 9 of the highest 10 most-viewed pairings on Uniswap V2 are canine tokens.
Two manner peg means its inconceivable for woofy to commerce at a premium to yfi for any important period of time
Imo that is only a bizarre strategy to switch wealth from unsophisticated customers to arbitrage bots and Ethereum miners https://t.co/CUKig4fHeW
— Hayden Adams (@haydenzadams) May 11, 2021