$200m Staked in YAM-Inspired DeFi Protocol in Under 12 Hours
(BLueFiSH.as/Wikimedia Commons)
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).
- Having only launched ten hours ago, investors have so far staked a total of $203 million in digital assets into its protocol. Total value locked (TVL) had surged $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, Compound founder Robert Leshner, 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.
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