YFI token has grown by over 50% percent rate in the last 24 hours of span. It was placed at $4,198 but has now seen a surge of 53% to be placed at $6,435.
On June 17, a blog claimed the YFI token to be ‘completely valueless’. It has also been claimed that the YFI token has no value. “We reiterate, it has 0 financial value.”
According to metrics site DeFi Pulse, yearn.finance is the sixth-largest DeFi protocol, with $585.3 million wrapped up in its smart contracts.
YFI is its governance token. It rewards depositors for using the protocol, kind of like a loyalty scheme. It also lets holders vote on the future of the network, reports Decrypt.co.
YFI came out at the end of June. Other large DeFi protocols, including Compound and Aave, followed with their own governance tokens, which also soared in value, the report added.
In fact, the whole of DeFi boomed after these governance tokens took off; as of August 16, $5.95 billion is locked in DeFi smart contracts; when YFI launched, just $1.68 billion was locked up in DeFi.