Aug 19, 2020 at 09:03 UTCUpdated Aug 19, 2020 at 14:06 UTC
The yield-farming craze continues: Investors have poured $200 million into a meme coin that’s barely 12 hours old, has no public figurehead or any audited code.
- Spaghetti Money offers staking pools in several DeFi tokens, including yEarn (YFI), Maker (MKR), and Compound (COMP).
- Launching 10 hours ago, investors have so far staked a total of $203 million in digital assets into its protocol. Total value locked (TVL) had surged by $3 million just as CoinDesk was going to press.
- Spaghetti doesn’t have a public team nor has its code been audited. Some of the code for staking rewards came from YAM – another yield farming protocol that went up in a fireball last week.
- There’s also a native PASTA token – that has no function since there isn’t a governance model – that will be publicly distributed through a staking pool sometime in the next seven days.
- Spaghetti is the latest in a series of “meme” coins that come up overnight with a catchy name and emoji to attract traders to stake millions of dollars into their pools.
- There’s now a prediction on decentralized survey site Prediqt betting Spaghetti will attract a total of $500 million TVL within the first 36 hours – something it’s currently on track to make.
- On Twitter, founder Robert Leshner of Compound, the first protocol to experience a yield farming craze, said that if Spaghetti’s TVL hits $500 million then “the industry needs to self-regulate and stop launching these meme farming games.”
- The protocol’s Twitter account caused confusion after it said Spaghetti was an ETC20 – rather than ERC20 – leading some to think it was launching on Ethereum Classic. The erroneous tweet hasn’t been corrected.
See also: DeFi-Yield-Hunting Token YFI Explodes to $11K From $32 in One Month
Read more about…
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.