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YFI makes an impact – exceeds $1 billion in market cap

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Bitcoin aside, there is another asset that is rapidly making its mark towards becoming the most valuable DeFi token. YFI has charted in with a market cap of more than $1billion and it is now worth more than $36,000 equivalent to 100 ETH for just one of these limited tokens. As of now, keeping in mind the circulation of 30,000 will become a permanent thing barring a pending vote which likely will get cleared. 

Apart from the staking is present where funds are locked with eligibility for rewards only if you vote. Currently, there are 6,139 YFI locked in, pointing out the 24,000 tokens are in the real circulation making the asset even more scarce. 

The category of 6K YFI holders will be able to get fees from the Yearn Ecosystem which will also include simple and strategic lending and borrowing in Earn, or anything else the Code machine would come up with. At present, the ecosystem seemingly generates $200,000 a day in fees which is twice more than Uniswap’s fee revenue at about $250 million daily volumes. 

If it is valued at 10x, the present evaluation of $200,000 converts into $73 million a year considering the present. But what the future holds might be completely different considering what Andre Cronje from Yearn Finance might come up with something effective in other ways later. There could also be changes by the top yETH coder, Jun-You Liu, the Taiwanese Cornell Ph.D. scholar who currently works with Cronje and his team. 

As is the situation now, just $500,000 funds the team. This can be refilled back as fees which will go to the treasury first if the holding is less than $500,000. The current treasury address shows that fees have been sent to the stakers to date, and the previous treasury address shows that it holds close to $360,000. The previous address has recorded many transactions, hence it will be safe to guess that $140,000 has been expended so far in the last 2 months or presently. Initially, it was thought it was only Cronje, but that we know it is with the entire team, it surely is a very cost-effective lean team. 

In fact, Cronje also has only circa $100,000, the address that was initially funded from Binance. They haven’t kept any tokens but are managing with the fees. We can also see that there is a huge potential as there are many of them who are yet to go to the YFI stakers at about 10% of their investment in a year. While there is no way to understand if it was really just Cronje at the start, there is also no good reason to doubt it as the launch of this business, or even that the empire has cost him only 0.99 eth. The remainder of the value has come from its ability to write Solidity and running a business profitable at just one eth. 

This shows that the barriers to entry are pretty non-existent today.