The unaudited new experimental DeFi protocol Spaghetti Money, with the PASTA token, eclipsed Yam, the pioneer of such projects. In 12 hours it drew more than $200 million into liquidity pools from yield farmers.
$204M cooking dem $PASTA
it’s probably the most successful $YAM clone thus far
i’d put it down to the timing (end-start sync) and similar basket of assets pic.twitter.com/9grS7JuD5Y
— 찌 G 跻 じ ⚡️ 🔑 (@DegenSpartan) August 19, 2020
Who is behind the project remains unclear. Its code, part of which was borrowed from the Yam that went through the collapse Yam, also did not pass an audit. The native PASTA token will be distributed over the coming week, but its function remains unclear due to the absence of a governance model.
The project even caused confusion among users. Its developers on Twitter stated that PASTA is an ETC-20 token, not an ERC-20. This led to speculation that it was launched on the Ethereum Classic blockchain. The erroneous tweet had not been corrected at the time of writing.
Announcing Spaghetti Money. The best noodle based ETC20 token https://t.co/nQ8PnV7B2J
— spaghetti.money (@SpaghettiMoney) August 17, 2020
Spaghetti Money, like Yam (logo — a potato-like plant), drew attention with a catchy name and emojis. This simple approach has not prevented Yam clones from attracting tens of millions of dollars into staking pools.
The project offers staking for several DeFi tokens – yEarn (YFI), Chainlink (LINK), Aave (LEND), Compound (COMP), Maker (MKR), Synthetix (SNX), Wrapped BTC (WBTC), Wrapped ETH (WETH). The total value of assets locked at the time of writing stood at $204.6 million.
PASTA, which had a listing on Uniswap (v2), had shed two-thirds of its value by the time of writing.
Source: CoinGecko
Earlier, Yam drew criticism from Messari analyst Ryan Watkins and ShapeShift’s Erik Voorhees. The latter expressed the opinion that a scam-like Yam does not contribute to the development of the DeFi space.
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