Amid growing hype around the decentralized finance (DeFi) industry, yEarn Finance, a lucrative farming project, has attracted increased attention in recent days. In just a week since the launch, the YFI token soared from $34 to $4500, after which it rapidly went down, having lost almost a third of its value on the last day.
Unlike heavyweights like MakerDAO and Compound, yEarn Finance has no underlying fund or venture capitalists. The project did not hold a presale and is managed by YFI holders who receive a token in exchange for providing liquidity to the yEarn platform.
The popularity of this project, which its creators describe as extremely experimental and high-risk, turned out to be unprecedented even by the standards of the DeFi ecosystem. In just a week, the YFI token, which according to the description has zero financial value, surged to a peak of 4505 on Saturday, after which its price plummeted.
Reviewers consider yEarn Finance to be the best example of a mini-bubble in the DeFi space.
There have also been suggestions on the network that large volumes of YFI are accumulated by the Binance exchange, although there is no reliable confirmation of this.