Token Food: The great Mal Bouffe in DeFi?

You have certainly noticed that many DeFi tokens have rather funny names. Many of them have names related to food.

These are called food tokens and they are the latest big trend in decentralized finance. It is also the logical continuation of yield agriculture.

Does this mean these are unserious tokens?

Don't judge too quickly. We could explain this craze for these names of steaks and fries by the fact that it is the youth of crypto-holders who allows and authorizes it. Cryptocurrencies have among its supporters a large part of Millennials, in fact, young people under the age of 20, having always been familiar with the internet and its memes. So, memes for example are part of their universe and it is therefore natural that they use them and transpose them into cryptocurrencies.

Here we will see the most famous tokens which bear the names of savory dishes. The table is set and it’s time to feast.

Indeed, there are precautions to take before eating it.

What are food tokens?

Certain DeFi projects are certainly experiencing strong increases but they can also experience alarming declines, as was the case with the HotDog token which lost 99% of its value in just a few minutes.

It was even with this accident that we began to ask ourselves questions about the role of the media and communications which are sometimes too "enthusiastic" about projects which are only interesting in name...

And, yes if that led us to think that it is more about degenerative finance, with very well-known expressions like “1500% APY” and just the “90% loss” yield. It goes fast and it flames as quickly as it burns. This is what makes us ask ourselves questions.

We must therefore be vigilant, as is recommended for all cryptocurrencies and all new projects, however appetizing they may be…

Also, it seems that the cooks never cease to amaze us and they prepare meals that are always more surprising (and profitable) than the others.

We will therefore see, a little overview of the menu and see if all the DeFi tokens presented to us have real projects that support them, if they have interesting financial models with solid structures.

It's good?

Is your mouth watering?

So we can go.

The story of chefs, kitchen scams and fork fights

You know, we write the history of DeFi every day, and that’s certainly what makes it interesting and exciting…

So let's see how it all started and see the back kitchen. You'll see, we're not far from Nightmare in the kitchen sometimes...

SushiSwap / SUSHI: The sushi of discord

We can mark the origin with Uniswap being at the origin of a great surge in DeFi projects; Many projects are in fact just more or less improved copies.

So, we start at the very beginning and it started with the Sushiwap project. Today, it is one of the most iconic and well-known tokens and it is not for nothing. The story is full of twists and turns...

The founders were both Chef Maki and Chef Nomi. But it was above all Chef Nomi who was the spokesperson for the project. THE chef Nomi introduced the protocol to us as an improved and superior version of Uniswap. He claims in other things that the profits on Sushiswap would be distributed more equitably among the members of the community.

The SUSHI token was immediately a resounding success. The success can also be explained by the fact that transaction fees were lower and the returns offered were more generous. And the 10% of mined SUSHI tokens were placed in a development fund to further improve the protocol.

Obviously the SUSHI token exploded and even tripled in price in less than 24 hours.

Only, there is a catch. People received SUSHI tokens for depositing UNI. Behind this mechanism was a process of hissing funds (called vampire attack) which consisted of sucking liquidity from Uniswap to transfer it to SushiSwap.

When Uniswap realizes, the value of SUSHI has dropped drastically accusing the troubled behavior of Chef Nomi, considered a crook in a white apron.

Chef Nomi started to leave with the funds intended for the development of the platform. At the time, it still represented around 13 million dollars (38 ETH at the time). Under anger and pressure from investors, he later apologized for his behavior and even returned part of the funds. He blamed himself, wrote a public letter of apology and returned the funds. But the damage was done, and another chef, Chef Maki, replaced him. He transferred management of the protocol to FTX CEO Sam Bankman-Fried who established the migration of Sushiswap to his own platform and no longer linked to Uniswap.

This story revealed the flaws in protocols and the need to have serious founders. Now that Chief Nomi is gone and is quietly spending his UNI, the protocol has found a certain balance.

Even more surprising still, in the end it was Uniswap which won in the exchange because it would have acquired many new users (those disappointed with SushiSwap which apparently had managed to attract many users).

While the UNI token is around 20 dollars today, the SUHI has regained momentum with a value displayed at 13 dollars. There are still users who continue to use it. Many people, however, think that SUSHI should be banned once and for all...

Well, SUSHIswap was clearly not the example of good behavior to follow, that’s a fact. Worse still, the protocol really gave DeFi a negative image. However, what we can say is that despite everything, this has indirectly contributed to advertising this type of protocol and to still attracting users for yield farming. Eh yes!

And, above all, it made a lot of other chefs want to cook better dishes and that starts with good ingredients.

This has enabled the creation of numerous Yield Farming platforms as you will be able to see.

Yam Finance / YAM : Sweet potato cultivation

YamFinance was one of the first DeFi protocols with the pure theme of a farmer's ingredient. It was the farm launched as an experiment. Yam means sweet potato or yam depending on the interpretations. We can even say that he initiated many other projects afterwards.

When YamFinance was launched, it was really well received because it was innovative. Likewise, the design of its Yam token was very interesting in that it expands and contracts depending on market conditions.

However, to the extent that YamFinance was a pioneer in the field, it experienced computer bugs which subsequently penalized it.

In the first version, a flaw caused the Yam price to drop to zero dollars in a matter of minutes. Notable figures in the cryptosphere such as Eric Voorhees, the founder of ShapeShift, then called the project a simple “scam”.

This obviously served a disservice and gave YamFinance very bad press. That said, new versions have followed one another and the platform today seems more resistant and reliable. But hey, we're sure of nothing, eh ^.

But, here again, its reputation has been damaged and with competition, it's hard to keep first place and sweet potatoes don't seem that profitable….

New wild cuisines are taking place:

In fact, very quickly, after YAM, there were kitchens that took over and we can say that it's from there that it's been a peanut journey (no pun intended).

Spaghetti's token is $Pasta. Launched on August 17, its volume reached its highest level at 181,76M on August 19, then fell completely, as did its symbolic price. Learning from the Yam bug accident, Spaghetti decided not to give DAO governance because it might waste a lot of time for the community to vote on important decisions under DAO governance.

When the food token arrives on Binance Smart Chain

BurgerSwap / Burger: Junk food arrives on the blockchain.

As we have already discussed, many projects are in fact copies of Uniswap.

We have seen that SushiSwap is a platform that rewards liquidity providers. However, we saw the flaws from a governance point of view. And, on sushiswap, ultimately, many people criticize its anti-democratic aspect and a system with low rewards. Sushi is in fact food for a certain elite, those with greater capital.

It is to counter this that the BurgerSwap protocol was set up. There, the burger wants to be more democratic and to be the burger for everyone, the food of the people who want food tokens.

So, in BurgerSwap, everyone can participate in the governance of the project; All users can vote to modify certain or such parameters for the platform. Likewise, each time a user participates in a vote, well, they are rewarded.

This therefore has two advantages: it rewards participants in voting and therefore encourages them to do so. Likewise, everyone has their place to give their opinion and vote.

BurgerSwap was the first of its kind, and it's on the Binance Smart Chain (BSC) that it was developed. He also contributed to the ever-increasing popularity of the BSC.

Moreover, the launch of burgerswap was so well done (more than 30% in less than 2 days) that many wondered whether the CEO of Binance, Changpend Zhao, did not directly support this project….Ah the rumors…

BurgerSwap was the first protocol of its type to be developed on the Binance SmartChain. Interesting fact: The launch of BurgerSwap contributed to the unprecedented rise in the price of BNB which rose by more than 33% in less than 48 hours!

Building on their success, the founders of BurgerSwap have even launched a "Fast Food Alliance". This fast food alliance includes spicy members such as Fry.World et 7up.finance. The objective of this alliance of taste is to work to improve the ecosystem of Binance SmartChain.

BakerySwap: the great Bakery

There, it's the turn of the bakery to make us hot rolls. BakerySwap is gaining more and more popularity in recent months.

Once again, it is a clone of the Uniswap platform but more complete. THE liquidity providers are rewarded with the platform’s native tokens: Bake.

Thus, they can then participate in the governance of the project and also earn commissions on transaction fees.

PancakeSwap: It's time to make pancakes, my friends

We have already spoken to you about PancakeSwap which is making a lot of noise at the moment.

You can read the article to know more about Pancakeswap.

HotdogSwap: The HotDog that caused indigestion…

Hotdog.Swap is of course another Uniswap clone that launched in early September. The HOTDOG token is certainly the one that showed us the unstable nature of these tokens. It reached as much as 5000 USD, then went from 4000 USD to 1 USD in just five minutes. Yes 5 minutes.

When we tell you to invest carefully in food tokens, it's honestly not a joke.

PizzaFinance: Pizza makers are coming to DeFi

Pizza is DeFi network based on EOS, which remains quite rare and allows users to put their EOS tokens as collateral to generate a stable coin called USDE which is pegged there, to the US dollar.

Kimchi Finance / KIMCHI

Kimchi Finance is a bit similar to Pizza Finance although the community expected a lot from this protocol. The popularity of the KIMCHI token exploded to a value of $6 in just a few hours…

MalBouffe’s craziest projects

Now, let’s see the craziest food token projects. Those which were created out of audacity without seeking to create a profitable project.

SaltSwap: SaltBae has his own restaurant on the blockchain

CafeSwap: a coffee break

Let's continue with food tokens.

How to win with these protocols? ?

So, you obviously have to be very careful with food tokens. The expression DYOR (Do your own research) has never been more valid than in DeFi, and particularly in Yield Farming for that matter.

We don't have enough perspective at the moment and it's still experimentation. It's not easy to sort well even if some bullshit projects are obvious to the most naive among us.

So, if we want to do it right, we must respect the usual basic criteria for any investment:

• Check the team, the roadmap and especially the audits carried out!
• Understand the history and the issue
• See the implementation of the token on other protocols (is it isolated or on the contrary, are there many partnerships established)
• What are the distribution percentages and check the match.

Note:

If you are interested in certain projects and protocols, remember that you can also invest in a "soft" way by simply buying the food tokens in question on exchanges like binance for example. You don't have to become a liquidity provider indeed.

How to “find” and select the best farms?

Ideally, you should check all this information and use essential sites like StateOfDapps or DappRadar.

In fact, you will have the information directly and you will be able to place yourself at the right time and even be the first served. Because yes, in DeFi, as in a large generalized buffet given in a public square, the logic is simple: first come, first served. This is particularly true for food tokens.

However, be careful because there are also advertisements and protocols put forward even though they do not have relevant data.

You will then be able to unmask farms that are not performing, for example:

Personally, we also recommend the StateofDapps site because you can discover new and very interesting protocols in concept. Really, it can be a very good source for discovering solid projects.

What is the future of food-themed tokens?

Well, obviously, we reached the peak with the Kebab and Merguez token… This contributed to discrediting the DeFi scene and throwing confusion into the picture. Yield Farming.

This is very similar to what we saw in the field of ICOs in 2017, a frenzy and a lot of shitcoin and here junk food served in abundance. Many food tokens are just pale copies of copies and have no long-term future.

People invest money when they don't check the information about the team or even the project! They only look at APY rates and that's it. And when they see that some people have already invested (often it's the founders themselves, eh), they put their money into these useless farms.

We are certainly nearing the end and today, and the best farms are standing out. Only time will tell us where we are going and if even Yield Farming will have a certain sustainability….

See the video :

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