How DeFi ‘Degens’ Are Gaming Ethereum’s Money Legos
First there were Tendies and YFI. Then came (and went) YAM. And, as of yesterday, we have Based Money.
Meet today’s decentralized finance (DeFi), in what amounts to a crossover between massive multiplayer online (MMO) games, like World of Warcraft, and crypto pump-and-dump schemes.
These aren’t the same DeFi projects launched earlier this summer, said Amentum Capital co-founder Steven McKie.
These new projects are about leveraging Ethereum’s tech for unintended uses.
They’re about making crypto fun again.They’re about making money.Yam Finance launched Tuesday.
By the following day, YAM shot upwards of $160 per token and had some $700 million in no-loss collateral obligations under contract (aka yield farming).
Early Thursday morning, YAM entered Github Valhalla when a bug locked the project’s governance and $750,000 treasury.
The token’s market cap swiftly lost $60 million in 35 minutes.
Playing the game
From first heartbeat to last breath in less than 48 hours. But those are the rules of DeFi’s newest toy, “minimally viable monetary experiments,” as Yam Finance dubbed itself.“
The longer it takes you to do due diligence in this cycle, the lower your alpha,” McKie told CoinDesk in a phone interview.
“If you are clued in to play the game, play it. If not, sit out to the next one.
”McKie was an early liquidity provider for Based.
Money, another DeFi MMO game (as he likened it to).
The project’s anonymous “Ghouls” founding team welcomed its users warmly
Play by the rules (even if you don’t know them)
Does the project have a governance structure? Where can I stake collateral to farm? What pool has the best returns?These are the questions DeFi “degenerates” (or “degens”) shoot back and forth ad nauseam in various community Telegram and Discord channels.
For YAM, the central rule was “Know thy rebase,” the algorithmic supply dump issued every 12 hours to push the token’s value back toward one dollar.
The token was bid up to as high as $167, according to CoinGecko.
Traders rushed to take profits before the rebase.
After, they pumped the token’s value back up.
Read the full topic at
https://www.coindesk.com/defi-degens-gaming-ethereum-money-legos
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