The DeFi space continues to amaze. Last week, the field was taken by a storm by an experimental protocol called YAM that attracted about $600 million in total value locked in less than two days.
Now, despite YAM’s downfall, investors are putting big money in another meme protocol called Spaghetti Money to farm its native token called PASTA.
From YAM to PASTA
Meme coins and yield farming is likely what 2020 will be remembered for in the cryptocurrency space.
The newest DeFi craze is a protocol called Spaghetti Money, and it presents various yield farming opportunities rewarded in its native cryptocurrency – PASTA.
Launched less than three days ago, the protocol has already attracted about $245 million of staking capital spread across eight different pools, much like YAM.
Another striking similarity with the first version of YAM is that PASTA’s contract is also not audited. According to the official post, some of the characteristics include:
No governance. Governance is too complex to spin up quickly and without an audit. Frankly, we didn’t feel comfortable trying after YAM. You will be able to audit the contracts and see there is zero external editing of the system that can be done once it is launched.
A Deflationary PASTA
Another interesting thing about the new protocol is the nature of its native cryptocurrency. PASTA is a deflationary ERC20 token.
The post says that 1% of the value of each spent transaction will be burn, essentially reducing the number of tokens in circulation.
The staking started yesterday at midnight, and people are already enjoying very high APY rates. The Uniswap yCurve pool provides investors with a staggering 6000% APY at the time of this writing, even though it started with more than 35,000% APY at launch.
The current pools, which include wBTC, wETH, MKR, COMP, YFI, LINK, SNX, and LEND, will be active for seven days in total since their launch. Following this, the protocol will bring staking rewards for a yyCRV/PASTA Uniswap pool, which will be active for 21 days.
Once the above period is through, no more tokens will be distributed or minted.