Yesterday, in less than 24 hours since its launch, YAM had $450 million locked in its unaudited protocol, which today surged to $604 million only to get more than halved. Currently, $280 million are left in this protocol.
But even more shocking is the price of YAM, which hit an all-time high at $167.66 yesterday only to crash more than 99% to its all-time low today at $0.574586, as per CoinGecko. Currently, YAM is trading at $1.15.
This has been all because of the 10% daily rebase.
The token came with no premine equitable distribution with Ampleforth like supply rebase. The rebase happens every 12 hours where the supply contracts and expands by trying to reach the $1 peg as such, affecting the actual number of tokens one owns.
Save YAM
This debacle happened today due to a rebase bug that had the team asking the YAM farmers to act. In its official announcement, the team shared that a bug was found in the rebasing function that mints too much, this excess mint stays in the YAM Reserves contract.
This makes it “impossible” to take governance actions as these excess YAMS exist but don’t vote as such, unable to reach a quorum. As a result, the funds ($500k) would have been lost as such YAM.Finance asked for help to save the project.
The team believed achieving quorum for a bug-fix proposal would help them save the protocol and asked the community to delegate their votes towards that. It said,
“We need ~1,600,000 YAM (160,000 pre-rebase YAM) delegated via yam.finance by 7am UTC on Thursday.”
The concern is the same as before: the yCRV accumulated in the reserves during rebase is at risk of being stuck if governance cannot pass proposals. https://t.co/KJxRIxk0ZP
— Yam Finance (@YamFinance) August 13, 2020
They even proposed granting lost rewards combined with a bonus to those who acted to save the system. And “whales will vote to receive compensation for saving yam,” said analyst Ceteris Paribus.
YAM 2.0
In less than 48 hours, the project experienced a full cycle.
In these just two days of the launch of YAM.Finance, there are now more than 8,600 unique addresses holding YAM.
And this community came to help the project with “massive coordination.” Crypto derivatives exchange BitMEX co-founder, and CEO Arthur Hayes also did some saving.
“I’m sorry everyone. i’ve failed. thank you for the insane support today. i’m sick with grief,” tweeted YAM creator Brock Elmore.
According to the latest update, YAM will continue to live long but behave like other rebasing assets like Ampleforth (AMPL) as it can no longer be modified by governance.
The YAM/yCRV Uniswap V2 pool — yCRV is a basket of yield generating stablecoins on the Curve DEX where the main issue was and where people got hurt — will remain safe after getting the majority of the liquidity out of the pool before the second rebase.
Now, because “we believe this community deserves the chance to persist,” the team behind YAM is setting up a Gitcoin grant for a community-funded audit.
If this is successful, they plan to launch “YAM 2.0 via migration contract from YAM.”
