Degens

How DeFi ‘Degens’ Are Gaming Ethereum’s Money Legos

First there were Tendies and YFI. Then came (and went) YAM. And, as of yesterday, we have Based Money.

Meet today’s decentralized finance (DeFi), in what amounts to a crossover between massive multiplayer online (MMO) games, like World of Warcraft, and crypto pump-and-dump schemes.

These aren’t the same DeFi projects launched earlier this summer, said Amentum Capital co-founder Steven McKie. They’re projects are about leveraging Ethereum’s tech for unintended uses. They’re about making crypto fun again.

Related: Market Wrap: Stuck at $11.5K, Bitcoin Surpasses 25K Locked in DeFi

They’re about making money.

Yam Finance launched Tuesday. By the following day, YAM shot upwards of $160 per token and had some $700 million in no-loss collateral obligations under contract (aka yield farming). Early Thursday morning, YAM entered Github Valhalla when a bug locked the project’s governance and $750,000 treasury. The token’s market cap swiftly lost $60 million in 35 minutes. 

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