The price of a new decentralized finance (DeFi) token has surged over 1,100% in a few days shortly after attracting the attention of Ethereum co-founder Vitalik Buterin, who praised its voting system.
The DeFi token, Pickle Finance (PICKLE) has seen its price jump from around $5.88 on September 13 to over $75 at press time, according to data from Uniswap. While the token’s price jumped to $50 shortly after being created on September 11, it plunged to a $5.4 low shortly after.
On September 13, as it was trading at about $5.8, it received praise from Vitalik Buterin himself, and the price of the cryptocurrency surged to a $79 all-time high, but endured a small correction and is at press time trading above $75. Its trading volume also surged.
PICKLE’s price started surging shortly after, on social media, Vitalik Buterin commented on its voting system. Pickle Finance is designed to use yield farming – also known as liquidity mining – to help eliminate volatility in stablecoins.
The protocol rewards stablecoin pools trading below their peg more than it does pools trading above their peg. IT currently supports pools for DAI, USDC, USDT, and sUSD, all trading against the native token of the Ethereum network, ether.
PICKLE token holders can also participate in its governance system, which uses “quadratic voting to prevent whales from having too much influence.” On Pickle Finance’s website, the system describes it doesn’t count votes nominally, and instead takes their square root into account.
In a given example, a whale casting 100 votes and 10 regular uses casting one vote each are said to have the same amount of voting power. Buterin commented on the system, asking how individual entities are determined to stop whales from splitting their funds and gaming the system.
In response, Pickle Finance revealed that for now they aren’t able to, but added maybe later it can “devise a system to better identify users.” It further pointed out the project has been live for only a few days.
Featured image via Unsplash.
Credit: Source link