Unleashing the Yam Protocol: A DeFi Journey with a Twist
Aiming to Resurrect Post-Fatal Rebase Malfunction, YAM Protocol Sets Redevelopment Target
Yield farming ain't just a buzzword in the crypto space anymore - protocols like Republic Protocol, Compound Protocol, and now...Yam Protocol, are making waves. So, when we talk about "lending protocols," this is exactly what we're talkin' about. Yield farming means lending some crypto tokens for interest and fees, with the potential for some hefty profits if the coin takes off.
The idea behind these protocols is to increase a coin's value by expanding the pool of token holders and the community. You lend your tokens through a decentralized app (dApp), and the dApp loans the funds out for speculation. In return, you get some tasty interests and fees.
Yam Protocol: Decentralized Innovation Unleashed
According to the Yam dev team, Yam protocol is all about "blending groundbreaking advancements in programmable money and governance." This experimental protocol promises to follow the best DeFi practices, ensure elasticity, and emphasize on-chain governance. But what's this elasticity thingy all about? For Yam, it means the token's supply depends on the inherent demand (or lack thereof). Initially, the target was to keep one USD for one YAM, the native token. When demand is high, 10% of each supply expansion goes to yCRV USD stablecoins for the Yam treasury. The awesome Yam community gets to decide on the Yam treasury matters.
The Rise and Fall of Yam Protocol 1.0: A Rollercoaster Ride
When Yam Protocol was first announced on August 11, it quickly gained massive popularity and tons of capital, reaching a mind-boggling $500 million within just a few hours. The craze amongst liquidity farmers pushed the price of YAM over $160 in less than 24 hours. Big names like BitMex CEO, Arthur Hayes, even showed interest.
But, like a sudden storm, a rebase bug was discovered on August 13, causing the promising experiment to plummet to under $1 and crippling the governance system. The co-founder of Yam Finance, Brock Elmore, expressed his despair upon realizing the error. He apologized to the new Yam community and thanked them for their support. The Yam Dev team submitted a governance proposal, but the rebase bug prevented its execution.
A New Dawn: Redemption Awaits!
Despite the catastrophe, the community stayed hopeful, working tirelessly to win back the public's trust. Yam set aside 160,000 for a governance pool to encourage support from the masses. Big industry players like CoinGecko, Synthetix, and others rallied behind the token, too. Farming YAM pushed even more tokens into the governance pool.
boatload of funds was locked into the protocol, which led to a downward drag for most other DeFi tokens after a price correction in the market. The staked coins were not lost, but the YAM tokens suffered a value drop to zero.
Strategies Moving Forward: Searching for Stability
Yam has proposed a migration plan to Yam 2.0, with the help of the community's votes. If approved, the protocol may follow a 2-phase migration plan to audited versions. Unlike its predecessor, Yam 2.0 aims to scrap off rebase and on-chain governance in favor of off-chain voting for deciding on the future of the YAMv2. The team will ensure auditing, and lost tokens will be rewarded to keep the project alive. They're even offering bonuses to those who help save the network. The future of YAM depends on the on-chip decisions made by the community.
- The Yam Protocol, blending advancements in programmable money and governance, aims to follow the best DeFi practices.
- Yield farming in Yam Protocol involves lending crypto tokens for interest and fees through a decentralized app (dApp), where the dApp loans the funds out for speculation in return for interests and fees.
- The Yam protocol's token, YAM, promises to ensure elasticity, with the token's supply dependent on inherent demand, and initially intended to maintain a 1:1 ratio with USD.
- When Yam Protocol was first announced, it gained massive popularity and tons of capital, reaching a staggering $500 million within just a few hours.
- However, a rebase bug was discovered on August 13, causing Yam Protocol to plummet to under $1, crippling the governance system.
- Despite the catastrophe, the community remained hopeful, working tirelessly to win back public trust and up to 160,000 tokens were set aside for a governance pool to encourage support.
- The Yam team proposed a migration plan to Yam 2.0, which may follow a 2-phase migration plan to audited versions, scrapping rebase and on-chain governance in favor of off-chain voting for deciding on the future of the YAMv2.
- The lost tokens in the protocol will be rewarded to keep the project alive, and bonuses will be offered to those who help save the network.
- The future of YAM depends on the on-chip decisions made by the community as it integrates new practices and technologies in the realm of DeFi and decentralized finance.
- The Yam Protocol's journey serves as a reminder of the potential and challenges inherent in crypto, token, smart contract, and blockchain technology as it continues to unleash decentralized innovation in the DeFi space, including yield farming, liquidity provision, and stablecoin practices.
