The price of the Yam experimental DeFi Protocol token has fallen by 99% in a day. The reason was a discovered vulnerability in the Protocol management system.
On Wednesday, August 12, YAM's market value exceeded $167. After that, in just a few hours, the exchange rate fell to $87, and at the end of the day — below $13. At the time of writing, the price of YAM has collapsed by 99.2% to $0.76.
The collapse occurred against the background of a bug that led to excessive issuance of tokens, which were then sent to the address of the YAM Reserves contract. This jeopardized the ability of token holders to continue managing the Protocol.
The developers noted that to save the Protocol, urgent measures must be taken before the second recalculation of the Yam denomination. Through two votes, token holders approved the proposed temporary changes aimed at eliminating the error.
On Thursday, August 13, Yam Finance developer Brock Elmore announced that he had failed to fix the vulnerability.
"I apologize to everyone. I failed. Thank you for your incredible support today," he wrote.
As a result of an unsuccessful update attempt, YAM token holders lost all control over the Protocol.
The Yam DeFi Protocol was launched on the night of August 12. An hour after its launch, the volume of blocked funds in the project's liquidity pools reached $76 million. The developers initially warned users that the Protocol did not pass a security audit. Despite this, the volume of blocked assets in Yam at its peak exceeded $600 million.
The project developers have announced their intention to launch version 2.0 of the Protocol.