Grabbing onto the tail of the current dog-related meme coin craze, decentralized finance (DeFi) aggregator Yearn has unveiled its own canine token.
Yearn Finance developers have announced a new token called WOOFY in an attempt to latch on to the hype surrounding meme coins such as DOGE, recently shilled by Elon Musk.
In a tweet on May 12, lead developer “banteg” shared some vague details about the new meme coin:
“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.”
FOMO for YFI
Yield farmers and speculators have rushed into buying the platform’s native YFI token in order to gain eligibility for a rumored airdrop of the new canine-themed offering. There ended up being no airdrop, just more social media hyperbole.
This isn’t the first time Yearn Finance has seen its community jump on a token before understanding its functionality or release program.
Woofy’s offers a bridge function to redenominate YFI holdings into another token at a 1:1 ratio. However speculators, failing to comprehend the tokenomics, may have assumed that WOOFY would be priced similarly to YFI.
One industry observer stated that there has been concern the high price of YFI due to the low supply is unfavorable to speculative traders due to unit bias. Woofy solves this with a bidirectional peg to YFI but at a low price, so it could be released with a one billion-to-one supply to YFI, he added.
“YFI owners would be able to mint $WOOFY (and vice versa), hence the price increase as people seem to be excited about the potential that $WOOFY does well given the current retail frenzy for dog meme coins. At first glance, this looks like an unsavory attempt to milk value out of the new suckers in the market. However, this is really just a brilliantly timed and themed ‘unit bias a/b test’.”
YFI price pumps to ATH
Whether intentional or not, speculators pumped YFI prices to an all-time high of a little over $95,000 during the morning of May 12. However, it’s pulled back a bit to $85,000 at the time of press.
The seven-hour-old WOOFY token started out priced at $0.095 but has since fallen to $0.084 during its first few hours of trading. According to CoinGecko, there are just under 250 million tokens circulating.
The DeFi aggregator boasted record revenues for April.