As the DeFi and yield farming craze continues to entertain the cryptocurrency industry, the price of yEarn. Finance’s native token YFI has gone parabolic, surpassing Bitcoin’s by almost $1,000. This makes YFI the most expensive crypto asset in the market.
1 YFI = 1.15 BTC
According to data on Binance, the DeFi token is trading at $12,770 at the time of writing, while Bitcoin’s dollar value is currently around $11,790. Earlier today, YFI traded at an All-Time High (ATH) of $13,444 before retracing to its current price.
In the BTC pair, yEarn traded against the king coin as high as 1.1518 BTC per token in the last 24 hours before dropping to 1.08 BTC per YFI. This makes it the second cryptocurrency to trade above 1 BTC after Zcash in 2016.
What is YFI?
Andre Cronje released yEarn.Finance on July 17 as a yield aggregating platform built on the Ethereum network. The platform helps yield farmers to find the best returns on crypto collateral while saving research time and transaction fees.
As with many other crypto projects, yEarn has a native token called YFI (Yield Farming Incentive).
The project and its token quickly rose to fame, recording massive growth in the value of assets under management and the price of YFI, which now trades above 1 BTC in the space of one month. Strangely, this comes in contrast with the announcement made by the project’s creator, saying that YFI is “completely valueless” and will not be traded on exchanges like Uniswap.
YFI’s robust momentum is a function of scarcity due to the limited supply of 30,000 tokens that were released at once. Following the impressive price run from $0 to over $12,000 with more than $825 million locked in the project, the yEarn governance members made several proposals to mitigate the impending effect of the running price.
One of the proposals is to conduct a 10:1 split after the price of YFI exceeds that of Bitcoin for “10 consecutive days.” This means that 1 YFI token would become 10 tokens, and by this, the total supply would increase from 30,000 to 300,000, which also means current balances would increase by 10x.
If the proposal is accepted, then the yEarn community could see the split in a few days as YFI continues to trade higher against BTC.
Nonetheless, another proposal is to uncap the total supply from 30,000 so that more YFI can be issued to cushion the inflation.