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Yearn Finance (YFI) Rallies 55% in One Hour after Binance Listing

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  • Yearn Finance’s YFI pops up by 55 percent in just one hour.
  • The jump comes after Binance announces that it is listing YFI pairs on its trading platform.
  • The Yearn Finance founder Andre Cronje further pumps the hype by making a blusterous announcement.

Yearn Finance’s native token YFI surged in an early session Monday after securing a position in Binance’s trading portfolio.

The Malta-based cryptocurrency exchange announced that it would open trading for YFI/BNB, YFI/BTC, YFI/BUSD, and YFI/USDT trading pairs by August 10, 1200-UTC. One hour after the news broke out, the YFI/USD exchange rate surged 55 percent to top at $7,100.

yearn finance, YFI, cryptocurrency, crypto

Yearn Finance's YFI token surged 55 percent in just one hour. Source: TradingView.com

The Real Value

The breakout move came as the part of a steady YFI uptrend. The Yearn Finance token debuted on July 25 while trading at near $3,545. Its involvement in the hype-filled decentralized finance sector helped to strengthen its upside bias, leading its price to as high as $5,610 as on August 7.

Despite some occasional turbulence, YFI kept its upside bias intact. Traders found the token’s core business model attractive. In retrospect, it serves as a governance token for Yearn Finance, a portal that finds the best available yields in the DeFi space.

People saw value in the aggregation model, and a pump ensued. It happened despite the founder of Yearn Finance, Andre Cronje, openly admitting that YFI has no monetary value. But the market largely ignored the proclamation and speculated on the token anyway.

“Each of these systems has control mechanisms, configurable fees, maintenance controls, and rules that can be modified. Thus far, these have been managed by us,” Mr. Cronje wrote in a Medium post.

“In further efforts to give up this control (mostly because we are lazy and don’t want to do it) we have released YFI, a completely valueless 0 supply token.”

He explained that users provide liquidity to their Yearn Finance pools. In return, they receive yTokens that account for their deposits. Users then stake the yTokens in the distribution contracts though Yearn Finance’s interface. For that, they earn YFI every day.

As of now, a significant portion of the yToken’s staking actions is taking place on Curve, the automated market maker primarily known for supporting lending platform Compound.

More Gains for YFI Ahead?

As of this time of writing, YFI/USD was correcting lower on profit-taking sentiments. The pair plunged by up to 15 percent from its intraday high, signaling that daytraders may continue selling the token to secure short-term profits.

Nevertheless, the hype for YFI remains. In a tweet published less than an hour ago, Mr. Cronje blatantly announced that “something sexy is coming soon,” which will increase the yield on yVaults by 400 percent. That should mean a 4 YFI reward instead of 1 YFI for stakeholders in the coming sessions.

With a little trading history behind, YFI expects to head higher but in unchartered territory.

Bombastic announcements could help the token to pump further. At the same time, any signs of aggressive pullbacks could cause sharp declines, so bullish traders should maintain a stop loss to get out of the market on lesser losses.

Source: https://www.newsbtc.com/2020/08/10/yearn-finance-yfi-rallies-55-in-one-hour-after-binance-listing/

Blockchain

Inside the Mysterious World of Bitcoin’s Mempool

Blocknative’s Mempool Explorer lets you explore the transient space where Bitcoin transactions are suspended in limbo.

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In brief

  • Blocknative has launched its Mempool Explorer to help understand mempool data.
  • Transactions pass through the mempool before they reach the Bitcoin blockchain.
  • The Mempool Explorer promises to democratize access to mempool data.

Blockchain infrastructure firm Blocknative launched a Blockchain Mempool Explorer yesterday, enabling users to access data more easily from the mempool

But what is the mempool? It’s the gateway to Bitcoin’s blockchain and many others. Before any transaction is written on a blockchain, the information first enters the mempool. There it sits, almost in purgatory, waiting for a Godly miner to select it and inscribe it into a block—or discard it forever. But the very nature of this in-between world, which differs for each miner, has always made it challenging to analyse. And it is often exploited by bad actors with the expertise to see things the rest of us can’t.

“At a minimum, our platform represents sunrise in the Dark Forest. The alpha predators are still operating, but now everyone can monitor their actions,” Matt Cutler, CEO and co-founder of Blocknative, told Decrypt

The main problem is that the Bitcoin mempool is built upon the shifting sands of pending Bitcoin transactions. As there is no one central source of mempool data—each miner has their own version of events—it is difficult to gather and utilize this data. This, in turn, makes it hard to take a reliable snapshot of events, and present them to developers. 

“It is pre-consensus by definition. It is constantly changing—literally at a sub-second level,” said Cutler. 

How the Mempool Explorer works

The Mempool Explorer tries to make sense of the pre-consensus data found in the mempool, making it accessible and easy to analyze. 

In the mempool, pending transactions are ordered, fees are prioritized, and new blocks are sent to the blockchain. The Mempool Explorer examines this data and makes it available to developers. Using the Mempool Explorer, users can track pending transactions, monitor exchanges, and share mempool data with others. In other words, it is a purpose-built environment for crunching data before it hits the blockchain. 

The Mempool Explorer in action. Image: Blocknative

The Mempool Explorer works as a global network of nodes, all enabling the Explorer to detect and record data on the mempool in real time. The Mempool Explorer can record more than 7 billion Ethereum mempool events in just one month. That is over 2,000 events per second on a 24/7 basis. 

How mempool data fights frontrunning

While mempool data is tricky to get hold of, it’s very useful for several different purposes. 

One of its main, albeit shady, uses is for frontrunning. Frontrunning is a way of making trading decisions based on knowledge of future events, similar to insider trading. And traders use frontrunning to get ahead of people on decentralized exchanges, typically on the Ethereum blockchain.

Alex Svanevik, CEO at Nansen, told Decrypt, “There’s certainly demand for mempool data. Trading in traditional finance is often a latency game, and crypto is no different,”

Here’s how frontrunning works when blockchain is involved. Since blockchain data is public, someone watching the mempool can see a trade being made and then make the same trade, offering a higher transaction fee. Since miners tend to pick transactions from the mempool that have higher fees (so they make more money), this means the later transaction is more likely to get included in the block—and the person gets ahead of the trade.

Until now, only some individuals use such techniques. “Today, these techniques are the domain of a well-equipped, and well-financed, elite few. Everyone else is at best a spectator to their actions – at worse, unaware,” said Cutler. This means general people using decentralized exchanges are often subject to frontrunning—but may have no idea.

Now anyone who uses the Explorer will now be able to fight back. 

“Any adversarial action that goes on chain must—just like everything else—first traverse the mempool. So our platform can give concerned parties advanced warning that adversarial actions are underway,” Cutler added. 

It’s time to embrace the mempool.

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Blockchain

Fintech Firm Fasset to Launch Zero-Trade Fee Crypto Trading Platform for Countries in the Gulf Region

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A new cryptocurrency trading platform is gearing up to offer zero-fee trades to users in six countries in the Gulf Region. Announced on Thursday, the platform Fasset Exchange (FEX)  has started sign-ups for its private beta and is planning a public rollout later this year. 

Source: https://www.coindesk.com/fasset-to-launch-zero-trade-fee-crypto-trading-platform-for-gulf-regio

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Blockchain

Bitcoin short-term Price Analysis: 24 September

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After being rejected under the $11,000-mark, the last 48-72 hours have seen Bitcoin survive a period of bearish turmoil. With the cryptocurrency’s price consolidating near $10,300 at press time, some degree of recovery was observed on the charts. However, the resistance at $10,412 continued to hold out. A look at Bitcoin’s charts revealed that a period of high volatility may be incoming for the world’s largest cryptocurrency.

Bitcoin 1-hour chart

Source: BTC/USD on Trading View

The 1-hour chart for Bitcoin, particularly, pictured a rising wedge pattern, at the time of writing. However, the chances were that the pattern will not hold true in terms of a breakout over the next few hours. Following the drop at $10,200, it is more likely that the valuation will exhibit more sideways movement and possibly re-test the resistance levels at $10,412 and $10,562.

The 50-Moving Average needs to be considered with respect to being a strong overhead resistance, but a quick burst in buying pressure can lift the crypto’s price well above the Moving Average. Further, the Awesome Oscillator indicated that despite the presence of bullish momentum, it wasn’t enough to affect a reversal on the charts.

Bitcoin 2-hour chart

Source: BTC/USD on Trading View

While the 1-hour chart was riddled with confusion, more clarity was seen on the 2-hour chart. The two-hour chart explained the possible market structure for Bitcoin’s movement over the coming days, rather than plotting an accurate price movement. As observed in the attached chart, the market structure was hardly broken, at the time of writing, with Bitcoin possibly going to move between the parallel channel before registering another flash crash to the support level at $9980.

The transition might not follow exactly with respect to the green line, but structurally, a re-test at $9980 before another leap north should be expected.

The Stochastic RSI was completely bullish in the short-term, hence, the price can rise to $10,560, before heading south. After reaching its peak, the orange line should undergo a bearish crossover at the overbought position as the selling pressure takes over once more.

Source: https://eng.ambcrypto.com/bitcoin-short-term-price-analysis-24-september

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