DeFi Trader Turned $200 Into $290,000. How Did It Happen?

The trader received 747 ETH per trade and earned $290,000 due to an error in the SYFI protocol created to track the price of the YFI token.

A protocol error made the trader rich

The story happened with a trader under the nickname @Amplify. On his Twitter page, he independently described how he became rich in one click. As the trader himself explained, he purchased two SYFI tokens for $ 100 each. This coin is the official SYFI payment protocol, which is designed to track the price of YFI and uses the “rebase” function. That is, when the YFI price changed, the SYFI token price also changed.

As a result of a failure on the Uniswap protocol, the trader managed to sell SYFI tokens at the price of the YFI token, which at the time of the sale was trading at a level above $7,000. As a result, 2 SYFI tokens were sold at a price of $15550. And later quotations for YFI increased to 740 ETH, which in terms of dollars exceeded $290,000.

At first, the trader himself did not believe his eyes, but when he was able to earn that kind of money from the sale of coins, he did not deny his luck.

Now Amplify’s life has become much richer. They quit their main job and said they had donated about $10K for a Gitcoin grant.

YFI will determine the future development of the DeFi market

The two main altcoins, YFI and Lend, have been falling rapidly for several days in a row. According to analyst Valdrin Tahiri, the cryptocurrency is trading in a range limited by support and resistance at $3100 and $4000, respectively. In case of loss of support, the quotes are likely to head to new record lows.

Recall that the DeFi frenzy began back in July, when the price of tokens grew by 100-120% per day, exceeding all conceivable levels. The industry leader was the Aave (LEND) project. Now $ 1.71 billion is blocked in it. It is followed by MakerDAO with $1.43 billion, Balancer ($1.36 billion), Curve Finance ($1.26 billion), yearn.finance ($953.6 million) and Synthetix ($871 million).

The token of the yearn.finance project, YFI, has risen in price by more than 151% in a week and at the moment tested the $38,883 area, leaving bitcoin holders biting their elbows with envy. However, the coin could not stand it and slipped down, losing 65% in price.

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