YFI token priced at $40,000 could be topped by forked YFL

Fibo Quantum

  • YF Link (YFL), a fork of the yearn.finance protocol is recording a gain of 1,000% in one week.
  • Analysts are predicting an extension of YFL’s rally that could compete with that of YFI.

You may call Andre Cronje the King Midas of the Ethereum DeFi sector. The Creator of the yearn.finance protocol announced the release of the governance token for that protocol a few months ago and since then, the YFI token has seen an unbelievable price increase of nearly 1,000,000% to $30,173, at the time of publication. However, A new product called YF Link, based on the mechanism invented by Cronje, could eclipse this rally.

With a price pump of 1,149.2% in one week the YFL token is part of the yearn.finance protocol fork, YF Link. Since its launch in mid-August, it has been gaining more and more interest from investors and traders. In that sense, the renowned trader Josh Rager explained the reasons why YFL has seen such an astronomical price increase:

Why else is $YFL pumping? – Because the dividend payouts to YFL holders – see below:

YFLink that is staked to LINKSWAP’s new governance contract via a yearn-like vault will be eligible for their share of 90% of listing fees, driving long term value to the YFLink ecosystem!

Rager had set a target price for YFL at $1,400. However, at the time of publication, YFL had alreadly exceeded that target and is trading for $1,561 with a profit of 98.67% in the last 24 hours. The market capitalization of YFL rose to $73,7 million.

What is YF LINK?

According to a publication by its creators, YF Link is a product that, as mentioned, was created by forking the Yearn contract created by Andre Cronje. The creators modified the contract so that users can provide liquidity with LINK instead of the Curve protocol (yCurve).

Thus, users make profits directly from their LINK funds and are rewarded with the YFL governance token. This token was originally going to have a total supply of 85,000 YFL and 6 liquidity pools. According to the team behind YF Link, 4 of those groups have already exhausted their YFL rewards. Therefore, users can still delegate funds, but will not receive YFL as a reward at the moment.

About a week ago, the team behind YFL announced an update on the token supply and its burn rate. As a result, YFL’s already scarce total supply was reduced once again, to 50,000 tokens:

As such, out of the originally intended 70K YFL hard cap, only 50K YFL will circulate, resulting in a token burn of approximately 28.5%. Your YFLs just got much rarer.

As can be seen in the graph below, 100% of the total YFL supply will be issued by the end of October this year. This will happen after the launch of the token’s pool #5 and #6. These pools are not available to users yet.

Ethereum ETH

Source: https://docs.google.com/spreadsheets/d/1h8451qUEwWcR0TUZ6iETEBpbWyVo8LYEIOk3JYMwQXw/edit#gid=2088403485

In addition, the team behind YFL has announced the launch of the new product LINKSWAP, as mentioned by Rager in the commentary above. LINKSWAP is a community-managed Automated Market Maker (AMM) focused on safety and value for the LINK community. In other words, the product is built to optimize users’ gas usage and protect them against “impermanent losses”. The product will have a target transaction fee of 0.25% and will provide liquidity for tokens paired against LINK.

While liquidity mining yields will be less than that of traditional AMMs, LINKSWAP protects these yields from being offset by impermanent loss from asset price movements within the pool, which can result in receiving less LINK from a liquidity pool than put in.

Both /LINK and /ETH pairs for assets can be added to LINKSWAP, both with the same impermanent loss protections.

Otherwise, Josh Rager is by far not the only analyst who expects the YFL price to continue to rise dramatically. As Cantering Clark, co-founder of Blockroots, said, a price of $10,000 would come as no surprise to him given the limited supply of the token.

At this point would a 10,000 $YFL surprise anyone? It was in the teens two weeks ago. Circulating supply is 47k out of 50k. This thing is going to move a lot more.

yfl chart

Source: https://twitter.com/CanteringClark/status/1300875797159444480