Spaghetti Money, the latest meme coin in the yield farming ecosystem has attracted $200 million from “yield-farmers” barely 24 hours after officially going live, according to data published on its website on August 19, 2020.
Spaghetti Money Gets Lucky
Just like during the peak of the initial coin offering (ICO) era, when numerous entities launched coins without real use cases, it appears yield farming, the latest craze in the world of decentralized finance (DeFi) is gradually becoming “ICO 2.0,” if recent occurrences are anything to go by.
On August 17, 2020, the Spaghetti Money DeFi protocol published details of its project and how it intends to make yield farming easier and straightforward for everyone to participate in.
In its post, the team made it clear that unlike established projects, Spaghetti Money has no governance model, or token distribution strategy of its own, as it would be copying the modus operandi of YAM Finance.
Fast-forward to August 19, and Spaghetti Money claims to have attracted a total of $205.563 million in staked coins. As seen on its website, Spaghetti Money currently supports just eight tokens including Compound (COMP), Maker (MKR), yEarn (YFI), Chainlink (LINK), Aave (LEND) and Wrapped Bitcoin (WBTC).
Interestingly, Spaghetti Money has no public team or audited code, as it’s just a “copy and paste project.”
Following in the footsteps of some established DeFi protocols, Spaghetti plans to distribute its native altcoin PASTA to the public through a staking pool.
“Special thanks: yieldfarming.info – your site is awesome. Thanks for the fork. Yam.finance – we used some of your staking code. DappHub – thanks for DS-Token, DS-Math, and HEVM.”
Despite the trivial nature of the Spaghetti Project, some observers have taken to Everipedia’s Prediqt to predict that the project’s total value locked (TVL) could hit $500 million within 36 million after launch.
However, Robert Leshner, the founder of Compound (COMP) has taken to Twitter to comment on the state of affairs in the DeFi ecosystem, making it clear that the industry may need to self regulate and ban the launching of “yield farming games,” if spaghetti hits $500 million in 36 hours.
At press time, Maker (MKR) leads the pack in the DeFi ecosystem in terms of total value locked ($1.43 billion), followed by Aave (LEND) and Curve Finance (CRV) with $1.21 billion and $979.1 million respectively, as seen on DefiPulse.