Weekly Analyst Thoughts
Last week was an exciting week in Defi. A new crypto token, Yam Coin, was launched that gives yield farmers APY returns above 300%. The platform allows seven cryptocurrencies to be farmed, and each experienced price rises last week. These tokens are: LEND, LINK, SNX, WETH, MKR, COMP and YFI. Below, see examples of different yield farming pools that investors can join.
The Yam platform puts a fun spin on liquidity pools with names like Aave Agriculture, Maker Range, and Compounding Hills. Yam coin has an interesting feature similar to Ampleforth called a rebase, which is a new iteration of stablecoins. Yam is not pegged to a value like the US dollar (Ex: USDC), but instead has a target value of $1 and reaches that target value through rebases, which either expand or contract the Yam supply in order to keep its price at its target value. For example, if Yam trades above $1 during a rebase, the Yam Coin supply expands in order to bring Yam back down to its target value of $1. Unfortunately, Yam Coin recently suffered a rebase bug that bricked the project temporarily, but with community funding and a proper audit, Yam 2.0 should be just as exciting as Yam 1.0.
By Jacob Stelter
Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at firstname.lastname@example.org