Messari believes that Yearn.Finance’s YFI token is one of the least expensive in the DeFi space, according to its price-to-sales multiple. The metric is calculated by dividing a token’s market capitalization by its annualized yield. In YFI’s case, its capitalization at the time of calculation was $390 million. According to Messari, its annualized sales stood at $21 million. Dividing the two numbers, we get approximately 20x. For reference, the same ratio for CRV, another popular DeFi token, is 1568x, making it 78 times more expensive according to this ratio. DeFi…
Day: August 24, 2020
Two DeFi projects with $1.2B in TLV have major governance issues
Curve Finance is currently the third largest DeFi protocol, with a total value locked, or TVL, of $1.1 billion. Recently the community realized that the project’s founder, Michael Egorov, had leveraged over 71% of the voting power, ultimately leading to backlash from the community. Andre Cronje, the founder of popular DeFi protocol yEarn.Finance, tweeted: Source: Twitter. The protocol’s next vote is scheduled for August 28. While Egorov’s share has gone down somewhat, he still controls over 50% of the vote at press time. YFValue was launched last week with a congenital…
BitMex awards its last developer grant to a Bitcoin scalability solution from MIT
BitMex’s 100x Group has awarded its last Bitcoin development grant of the year. The company has awarded a grant valued at $40,000 to Calvin Kim for his Bitcoin scalability solution, Utreexo — a project originally created by Tadge Dryja from the MIT Digital Currency Initiative. Bitcoin’s protocol checks every proposed transaction to make sure that the sender has enough coins to complete the request. All unspent Bitcoin (BTC) is saved in what is known as UTXO, or Unspent Transaction Outputs. While the entire Bitcoin blockchain is currently around 300 GB, the UTXO…
DeFi investment hype fuels rise in crypto exit scams
It’s hype season in the crypto space once again, and unsuspecting investors are at risk of suffering losses. Riding on the coattails of decentralized finance tokens that have provided staggering yields, rogue actors are flooding automated market makers like Uniswap with fake tokens. These schemes range from the elaborate to the downright lazy, but many seem to be hitting their mark, likely preying on the greed or ignorance of newbie crypto enthusiasts. Survivors of the many pump and dumps that dominated the 2017 initial coin offering era can probably identify…