A brand new token of a new pool on a new dapp is now worth close to six eth right out of the box.
The limited token with rumors suggesting it will be capped at just 30,000 is worth zero, Andre Cronje of Yearn Finance said.
Not least because it is actually currently being given out for free if you provide liquidity or use the dapp, but some market participants apparently think it is easier to just buy it at what sounds like a high price, but if they do cap it to 30k, then it gives the pool a market cap of ‘just’ $40 million fresh out of the box.
All that price appreciation is because YFI gives governance rights to a liquidity pool called Y pool that runs on what can be called the Curve dapp protocol which uses geometrical curvy maths to focus in particular on stabilizing stable coins like dai and usdt or wbtc and renbtc.
Curve itself will launch its CRV token soon giving the owners rights to decide how many pools can be on Curve, which pools, whether these pools should give them a fee.
The YFI owners can then decide whether to give them the fee or negotiate a new one as well as how much they themselves should be charging for the pool users with those users themselves potentially being YFI token owners.
With this basic ‘intrinsic’ value established, YFI can now be used as collateral on Compound if the Comp token holders want to allow them to do so and for the privilege they may well request lower fees for comp or whatever business wizes will come up with in code based negotiations.
This collateral on Comp on YFI can now itself be used as collateral on another dapp by tokenizing the collateral. And now these other dapp token holders decide whether they like YFI or not or the other dapp (unnamed because we’re not aware of tokenized collaterization yet), or this other dapp can be a free for all where anyone can add anything like on Uniswap.
It is on Uniswap where we’ve taken the screenshot above with it envisionable that eventually there may be the ‘messy’ free dapps space where anything goes and the curated space where all these token holders do all this business wizzing.
Meaning we are witnessing the birth and the dawn of a new digital stock market, of new banking and of a new financial system, as predicted:
“The older generation of bankers would probably be completely unable even to imagine how the new system would operate and therefore be practically unanimous in rejecting it. But this foreseeable opposition of the established practitioners ought not to deter us.
I am also convinced that if a new generation of young bankers were given the opportunity they would rapidly develop techniques to make the new forms of banking not only safe and profitable but also much more beneficial to the whole community than the existing one.” – Hayek, Denationalization of Money.