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Linkswap Launch Hype Mounts as Native YFL Token Soars

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The highly anticipated launch of Linkswap, the community-governed automated market maker for the Chainlink ecosystem is nearing and related tokens have already started to move.

Linkswap was originally announced in late August as a rival to Uniswap for LINK holders. Citing high risks on other DeFi protocols along with rising gas prices and Ethereum volatility, the team behind the new offering has promised something new for the ‘Link Marines.’

One of Linkswap’s most important core features is its focus on impermanent loss reduction, the original announcement stated.

Impermanent loss is also called divergent loss, which is the difference between holding tokens in an AMM liquidity pool and just simply holding them on the sidelines. Temporary losses can occur during times of market volatility or when the bears have a strong grip on things, which is certainly not the case at the moment.

Linkswap will implement continuous liquidity pools (CLPs) to reduce impermanent loss for liquidity providers. The reasoning for this is due to the mindset of the Chainlink community it claims;

“This is especially important for LINK Marines, who would rather HODL their LINK and forgo yield to stack their LINK, if the seeking of this yield could lead to potential losses of the LINK they hold so dear.”

All Aboard the Link Hype Train

Linkswap is due to launch on Nov 25, and the hype is certainly mounting.

Popular traders and analysts such as Josh Rager have jumped aboard the train with a steady stream of posts touting various tokens that will be supported by the new DeFi platform:

When launched there will be a number of farming pools available for various tokens including GSWAP, a gaming DEX also set to launch soon.

A blog post from Nov 15 gives more details regarding rewards for liquidity providers to the various pools.

Getting the most attention is Linkswap’s governance token, YFL, which will be the basis for many of the farming incentives.

ChainLink LINK
Linkswap Launch Hype Mounts as Native YFL Token Soars

YFL Price Update

YFL has been on a tear lately. Over the past 24 hours, the new AMM governance token has added more than 20% to top $1,000 for the first time since its initial spike in early September.

Rager is among many that see this one going a lot higher, especially when the hordes of liquidity farmers flock to the new DeFi protocol.

“And when $YFL hits $1k I still won’t sell because I know overtime it’s going much higher with all the plans the team has in place,”

At the time of press, LINK was trading at $15.10, up 4% on the day.

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Martin Young

Martin has been writing on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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Source: https://beincrypto.com/linkswap-launch-hype-mounts-as-native-yfl-token-soars/

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