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

 Follow me on

Linkedin: https://www.linkedin.com/in/crypto-expert20

If you wont me to post your cryptocurrency article on my blog From the link
https://www.fiverr.com/cryptoexpert20/post-your-cryptocurrency-article-on-my-blog

Comments

Post a Comment

Popular posts from this blog

SEC’s discussion with Bitcoin ETF issuers has moved into a key stage

Image
 The SEC is reportedly making significant progress in its discussions with several firms seeking to launch a spot Bitcoin ETF. Reuters reported that discussions have moved into key technical details, and applicants believe it’s potentially leading to the historic approval of the first Spot Bitcoin ETF in the U.S. Currently, there are 13 applications for Bitcoin ETFs awaiting review by the SEC. These applications come from prominent asset management companies, including BlackRock, Fidelity, Grayscale Investments, and ARK Investments.    Notably, in the past week, several of these firms have made crucial updates to their applications, hinting at the evolving nature of their proposals. Grayscale Investments CEO hints at optimistic scenario for spot Bitcoin ETF The digital asset market has been closely monitoring the situation, speculating on the impact that an approval of a Spot Bitcoin ETF would have. Such an approval would be a groundbreaking event, marking the first of it...
Read more

What’s Causing the Current Bitcoin Crash and How Low Can it Go

Image
 Bitcoin’s price has been very bullish over the last couple of months. However, it is finally showing subtle signs of correction today. Therefore, it is worth analyzing the charts for potential support levels. Technical Analysis Bitcoin Price Analysis: The Daily Chart  On the daily chart, the price has been blowing past resistance levels one by one. Yet, today’s action has been very bearish, as the daily candle looks very bearish.   The price has dropped around 10% today before rebounding from the $40K support level. In case this level holds, it could initiate a rebound, and the market might rally toward the next significant resistance level, which is located at the $48K mark. On the other hand, a bearish breakout could result in a drop to the $38K and potentially the $31K zone.   BTC Price on The 4-Hour Chart The 4-hour chart demonstrates today’s decline much more clearly. The price has created a double top pattern around the $44,500 mark and proceeded to plunge to...
Read more

BlackRock's Bitcoin ETF Now Invites Participation From Wall Street Banks

Image
 A change to the structure of proposed spot bitcoin ETFs would enable authorized participants (APs) to create new shares in the fund with cash, rather than only with cryptocurrency, essentially opening the door to banks who cannot hold crypto directly. A change to the mechanics of BlackRock's proposed spot bitcoin (BTC) ETF opens the door for Wall Street banks, which face restrictions holding cryptocurrencies, to play a key role. BlackRock recently made it so authorized participants – a vital part of the ETF ecosystem – will be able to create new fund shares with cash, rather than only with cryptocurrency.   As highly regulated U.S. banks are unable to hold bitcoin themselves, this set-up would enable the likes of JPMorgan or Goldman Sachs – firms with some of the largest balance sheets in the world – to act as APs to BlackRock's ETF. (Whether they want to is another matter.) The cash APs use in this process can then be exchanged into bitcoin by an intermediary and warehoused ...
Read more