Value of more than $44 million Floki Inu (FLOKI) Less than 24 hours after its launch, the tokens made their way to a new liquidity pool on the decentralized finance (DeFi) project Inverse Finance.
FLOKI, which was presented as a meme coin on the first day of its introduction, was trying to get rid of being known only for this feature over time. This step from the developers took FLOKI to the next level and helped realize different usage scenarios rather than just a meme coin. Inverse Finance Its founder, Nour Haridy, tweeted that “$20 million of FLOKI was deposited within the first hour.”
Data from wallet scanners shows that as of Wednesday morning, 364 billion FLOKI tokens are in Inverse Finance. FLOKI It shows that it is locked in the pool. DeFi projects like Inverse Finance rely on smart contracts rather than centralized intermediaries to provide users with financial services such as lending, borrowing and trading.
Inverse Financeallows users to receive token credits by providing tokens as collateral to the protocol. The newly launched FLOKI pool has a 50% margin factor as of Wednesday; This means that users can receive 50% of the value of Floki Inu tokens staked in the form of DOLA, a stable coin issued by Inverse Finance pegged to one.
Loans have no maturity. However, if the value of FLOKI tokens drops and a user’s borrowing limit exceeds 100%, the credit will be liquidated and liquidators will be charged a 13% fee upon repayment.
“This process is automatic and cannot be stopped, so please borrow responsibly and do not borrow to the full limit,” a document by Inverse Finance warned.
The addition of floki inu comes after an on-chain governance proposal was accepted by the Inverse Finance community on Tuesday. Projects like Inverse Finance operate as decentralized autonomous organizations (DAOs), relying on their communities to propose newer growth, adoption, and other technical improvements.
However, the addition hasn’t changed the Floki Inu prices that much. CoinGecko data shows that prices remained stable at $0.0012 after the initial spike on Tuesday night. Token prices have dropped 32% over the past thirty days and seem to reflect the decline in the broader crypto market.
The Rise of Floki Inu
Floki Inu, named after Elon Musk’s pet dog Floki, is one of the many meme coin startups that have mushroomed in the crypto market this year. Fears of a ‘carpet pull’ gripped the project early after the original developer cheated and drained a liquidity pool and came out with hundreds of thousands of dollars.
However, community administrators maintained the token and invested their own funds to keep the token afloat. A ‘V2’ version has been announced by early adopters who helped relaunch the project, this time with security mechanisms to prevent them from pulling rugs. The project has since grown to a market capitalization of $1.2 billion and has garnered acclaim from the UK’s advertising authorities for its relentless marketing on London’s public transport.
Floki inu is also working on contributions outside of the crypto market. Tweets by the developers on Monday claimed that the project will build schools in Guatemala, Nigeria and Laos in partnership with local government officials and NGOs.