🍠Yam Finance in Two Days: $1B Volume, Community’s Rescue, $YAM Token Price Dropped 99% and The Forever Locked $750K

🍠Yam Finance in Two Days: $1B Volume, Community’s Rescue, $YAM Token Price Dropped 99% and The Forever Locked $750K

By Dapp.com | Dapp.com | 13 Aug 2020


51f3bc2e79514b848a7bfbca7db3f8ad.jpg

 

Year of DeFi. After Compound, Yearn.finance, a new DeFi protocol called Yam Finance attracts people’s attention and money

At 19 pm 11st August, Yam Finance started its first round of liquidity mining $YAM token. 2million $YAM token was distributed to 8 staking pool equally - COMPLEND, LINK, MKRSNX, WETH, YFI, and ETH/APML  Uniswap v2 LP. They are all hot DeFi tokens.

f5d0347fb37a406abe72482ee1ec410c.png

At 19 pm 12th August, it started its second round of liquidity mining. The total amount of token pool for the 2nd round is 3million. The first week is 1.5million, and then the amount will be reduced by 50% every week thereafter. There is only 1 staking pool for the second round, which is YAM/yCRV Uniswap v2 LP. 

f54f544367a84a89a121834ee3ea23db.png

In less than 2 days, Yam Finance volume reached over $1B USD. Its token price $YAM went up from $66 to $167(ATH) and then dropped to $2. The trend of Yam Finance $ YAM token price and its user/transaction/volume data seem to be in the opposite direction. Why did this happen? Leave your opinions in the comment area below.

3f327a586383448a947e94791a9cb797.png

(From https://www.dapp.com/app/yam-finance, the black line shows the token price)

 

What is Yam Finance?

 

Yam Finance protocol seeks to create

  • An elastic supply to seek eventual price stability. 

  • A governable treasury to further support stability

  • Fully on-chain governance to enable decentralized control and evolution from Day 1

  • A fair distribution mechanism that incentivizes key community members to actively take the reins of governance

 

So we can see that Yam Finance focuses on decentralized governance, fair profit distribution, and token price stability. $YAM is an elastic supply token. According to the market demand and supply, its target is to keep $YAM price at 1 dollar. Is that the reason why $YAM price drops so much and will it continue to drop further?

 

The power of decentralized governance saved Yam Finance?

 

Just a few hours ago, Yam Finance has overcome a serious code error. 

The future of Yam Finance was abruptly thrown into question when a bug in the protocol’s code resulted in excessive YAM reserves being minted — making it “impossible to take any future governance actions.”

Relying on the power of the community, Yam Finance quickly asked for community support by offering rewards to YAM miners and token-holders who were willing to pledge their tokens toward a pool of 160,000 coins to recapture governance over the protocol before the 7 am UTC deadline.

Yam Finance initiated a save $YAM project on the website. With the huge supports from the community, $YAM surpassed its target.

69aece742cbf47d789c7bf85b4edfc07.png

But passing the proposal does not mean the team saved $YAM successfully. Belmore, the core developer of Yam Finance posted in his Twitter to admit the failure of trying to save Yam Finance.

 

132c6c15574c42f09c7788ff02460f75.png

The support campaign to get holders to vote to save Yam Finance turns to be ultimately futile. The bug created a huge amount of new $YAM and sent it to the treasury contract, it now holds the vast majority of all tokens, which is much more than the amount of $YAM tokens put into the support voting pool. “This means the available $YAM on the market are not enough to reach quorum,” said Cronje, DeFi developer and founder of the yEarn protocol.

Unfortunately, the result is that both the governance and the treasury are now “bricked” and cannot be accessed. The governance contracts are being “permanently broken” and $750,000 worth of Curve tokens being locked from use.

This accident of Yam Finance caused a significant price drop of DeFi tokens.

d1f383c677684d26a3363e01db911620.png

 
You may also like:

 

Make sure you bookmark dapp.com and subscribe to our newsletter below to get updates direct to your inbox.

Dapp.com
Dapp.com

Dapp.com is your trusted platform to discover and analyze thousands of ranked dapps built on Ethereum, EOS, Steem, TRON, TomoChain, IOST, and Blockstack.


Dapp.com
Dapp.com

Dapp.com - Your Homepage of Blockchain. 🌟Find the best and reliable blockchain products in weekly #dapp.com choice 🌟Discover newest and interesting blockchain products (games, social media, arts, DeFi, etc) 🌟Evaluate a dapp through its on-chain data tracked on dapp.com 🌟Get the latest blockchain market performance any time, anywhere 🌟Log in with dapp.com wallet and enjoy the dapps in one-stop

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.