What is Yam Finance?

There are a few decentralized finance projects that offer flash loans. Yam Finance (YAM) is a DeFi project that is just a flash in the pan. Originally described as a "minimum viable currency experiment," YAM was launched to high profile on August 11, and its market capitalization soared from zero to $57 million in less than two days. But later on Wednesday, the company announced that it had discovered a bug in the rebasing contract, and by Thursday, its market value had fallen to zero. The DeFi community banded together to save the project, but to no avail, the project's rebase feature turned it into a global competition where investors speculated on token prices. The short life of YAM has also highlighted divisions in the crypto community, with some concerned that DeFi appears to be heading in a reckless direction. Whether this divergence is due to a generation gap, a “regression” of Bitcoinists and DeFi, or something else is entirely unclear, but an informal Cointelegraph survey found two very different views on the YAM rebasing experiment. ShapeShift CEO Erik Voorhees said on August 11: "YAM looks like a scam. Such a project is not good for DeFi." Meanwhile, Messari CEO Ryan Selkis slammed YAM Finance as a "perfect pump and dump". "Plan", there is a 20% chance to become the DeFi version of The DAO, but The DAO incident almost killed Ethereum in 2016. UMA, Yam Finance and Crypto.Com will cooperate to develop NFT product suites: According to official news, UMA Protocol, Yam Finance and Crypto.com announced that they will cooperate in the NFT field, aiming to provide financial products for the NFT field. Currently, UMA Protocol and Yam Finance are cooperating to launch the CryptoPunks index. After launch, Yam Finance will expand support to maintain the product. At the same time, Crypto.com will cooperate with the UMA protocol to explore the possibility of introducing this product to its user base. [2021/5/12 21:53:01] Meanwhile, software engineer and Bitcoin Core developer Jameson Lopp has called on the crypto community to "steal away from people who promote ludicrously irresponsible financial products like YAM and use it as an excuse." shame". Theoretical experiment or classic pump and dump? Taylor Monahan, founder and CEO of blockchain interface provider MyCrypto, told Cointelegraph: "YAM marked a turning point, everything changed from crazy to downright horrible." She mentioned, "Everyone knows that all DeFi projects The collateralized value of DeFi is huge," the total locked value of DeFi exceeded $6 billion this week," but no one would have thought that a public, unaudited project with ridiculous branding would get $500 million in less than a day. dollars.” A bug discovered in the YAM protocol code resulted in excessive YAM reserves being minted, making it “impossible to take any future governance measures.” The YAM project then sought help from the DeFi community, and support came . BitMEX CEO Arthur Hayes tweeted: "I did my part to save YAM, did you?" CoinGecko also helped the YAM project, its founder and CEO Bobby Ong told Cointelegraph , YAM is "a very successful encryption economic experiment, although it is a risky and careless experiment." Analysts: bugs lead to exponential increase in the number of YAM tokens: August 13, Belmore, the core developer of the DeFi project Yam Posted a tweet to announce the failure of the project. Some analysts said that due to the bug in its original code, it affected the total supply of YAM after rebase, resulting in an error in the total circulation on the chain, but the relative currency holding ratio of all addresses was fine. , There is no problem with the calculation of the currency holdings of a single address. After the second rebase, the additional issuance of Reserve was 24 orders of magnitude larger than other addresses, which caused community governance to get out of control. The developer tried to submit the modified contract code before the second rebase, but for some unknown reason did not require approval before the rebase. (Deep Chain Finance) [2020/8/13] Ong explained to Cointelegraph that YAM proves that “by utilizing various DeFi communities such as ChainLink, Synthetix, Aave, Maker, etc., it is possible to build a successful project community on top of other communities ""This is a very interesting experiment, because it also implements Ampleforth adding a rebase function to its protocol rules. A token with a rebase function actually turns the project into a massively multiplayer crypto game, with players all over the world is betting on the price of the token. It creates an asset class that is not correlated to the price of Bitcoin, Ethereum, or any other token because its price is determined entirely by its own protocol rules.” Others, while approving of Yam, Reluctant to call it an experiment, they think at least Yam is not of scientific interest. Ruaridh O'Donnell, co-founder and director of information systems at DeFi lending platform Kava, told Cointelegraph: "Calling Yam an experiment means it's an elaborate system designed to prove a new concept. It's not. There is a quick patchwork of DeFi ideas." Then, he added: "However, sometimes we need such things to inspire the real version that comes later." YAM core developer belmore tweeted an apology: Sorry, I failed: 8 According to the news on March 13, belmore, the core developer of the DeFi project Yam Finance (YAM), just tweeted: "I'm sorry, everyone. I failed. Thank you for your great support today. I am so sad." According to the CoinGecko market, YAM Since the community vote, the price of the Yam Finance (YAM) token is now at $1.88, a 24-hour drop of 97.7%. YAM is the token of the Yam Finance project. Yam Finance is an experimental protocol, designed and launched by Brock Elmore, Trent Elmore, Clinton Bembry, Dan Elitzer and Will Price, which incorporates some innovations in programmable currency and governance, with elastic supply, fully driven by on-chain governance, The distribution mechanism is fair and not assigned to teams. [2020/8/13] O’Donnell suggested taking a long-term view. “New markets always have periods of over-hype. They often follow an S-curve model of slow growth, then over-hype as people speculate about the potential of the new technology, and then fade away as people learn about it .” Is DeFi overheating? When the market is growing as fast as the DeFi market, it can be difficult for the market to maintain balance. When asked if DeFi was inflating a bubble, attorney John Wagster of Frost Brown Todd LLC told Cointelegraph: “The total value locked in DeFi has rapidly increased from about $1 billion in May to $6 billion today, which of course can seen as a sign of an overheated market.” However, he also said: “The truly innovative concept of yield farming (yield farming) comes from clever engineering that seems to attract market players looking for new opportunities.”gate .io will extend the suspension of YAM trading and deposit and withdrawal time: According to the official announcement, Gate.io will extend the suspension of YAM transaction and deposit and withdrawal service time, wait for the official repair and then adjust the user's YAM position according to the official actual rebase situation. It is reported that YAM's first rebase contract execution was originally scheduled to be carried out at 4:00 am on August 13, Beijing time, but according to YAM's official disclosure, there was a bug in the first rebase, and the official needed more time to fix it. [2020/8/13] Lex Sokolin, chief marketing officer and co-head of global financial technology at ConsenSys, told Cointelegraph: "Software can scale ideas like never before, allowing a single developer to integrate an excellent DeFi application architecture and Deployed to $500 million in assets. Compared to the existing financial system in the banking and fintech space, this space is developing faster and has more momentum." He further shared: "What I got from YAM The implication is that there is a huge need for innovation in financial infrastructure that may outstrip the capabilities of the existing operating environment." Scams, robberies, and crime. We’ve seen phishing sites and extensions specifically targeting DeFi products like Uniswap. We’ve seen Google ads and malicious DMs and tweets from fake sites.” She further shared: Staking on Yam The asset value of Yam has exceeded 460 million US dollars: Jinse Finance reported that the asset value pledged in the DeFi project Yam has exceeded 460 million US dollars. According to data from CoinGecko, the market cap of YAM tokens reached $13.5 million, with a 24-hour trading volume of more than $29.36 million. According to previous news, the DeFi project Yam was launched at 3:00 on August 12, Beijing time. The project’s blog post warns that no audit of its contracts has yet been conducted. [2020/8/13] "I said in February that DeFi's total locked value (TVL) is clearly in the early stages of a parabolic trend, and it will develop much faster than we expected. The new crown pneumonia has hindered development, but Ultimately nothing can stop the momentum of the crypto market, not even a global pandemic.” When asked if DeFi had exploded, Bitcoin analyst Tone Vays, organizer of the Financial Summit, told Cointelegraph: “Unfortunately, due to the recent With Bitcoin up, DeFi doesn't look overheated yet, which is why everyone is rushing to get rich from these scams." Vays went on to add: "Developers don't even need a functioning product at all. YAM founders probably want it Lasts more than two days, but considering there is a market cap of $60 million on day one, then the YAM founders probably sold $5 million worth of YAM on day one and can now relax and enjoy the rest of their lives.” Asked if he thought YAM was a scam, Vays replied: “To me, anyone who prints money is running a scam. Satoshi did it differently because he was the first to solve it.” People who actually have problems.” In contrast, CoinGecko’s Ong said: “I don’t think it’s a scam because the rules are clearly laid out at the beginning and everyone can see. I do think YAM is a scam though. Very risky, careless experiment." The point about the risk is related to the rebase function, which can mint a large number of YAM tokens, thereby diluting the existing token holders, but this is not known to all participants. The project was called careless because its code was not properly audited and tested before launching. Existing systems like complex cathedrals do not have many precedents for weekly explosions. As Sokolin told Cointelegraph: “The existing system was created more like a cathedral of complexity. The crypto space is not going to match 50 years of core banking and portfolio management software overnight.” Ong added, It is believed that the current mining boom mimics the mining boom of 2014-2016. However, back then people had to understand how mining worked, but now, "people just need to have capital to stake and farm early tokens, which is a much more democratic process." Sokolin added that when it comes to people's financial assets At that time, there is a danger of moving too fast and disrupting too much, "if we are going to mass retail adoption, the standards will become stricter and the assets will be more strictly regulated." Ong also added: "Ultimately, this A 'production test' would cost a lot, and I wouldn't be surprised if something like Mt. gox happened at some point." Lesson learned? Any takeaways from last week's events? Wagster told Cointelegraph: "The fact that YAM apparently comes with unaudited software code is a huge red flag for anyone paying attention, but don't let One mouse poop ruins a pot of porridge.” Ong added that those investing a lot of money in DeFi in the future should consider buying insurance. “In this case, “insurance for the YAM contract is available on Nexus Mutual, but no one is buying it,” he said. O’Donnell emphasized the enormous impact of coding errors in this high-stakes environment: “I think it’s Highlights that building these systems is very difficult and quite different from other software development. Mistakes can lead to catastrophic failure, which is everything a standard web application cannot do. Vays is skeptical of everything gleaned from recent events: "The only useful thing about YAM is to show that these projects can cost you all your money in two days, but I've seen people waiting for YAM 2.0, So people didn't learn their lesson. Indeed, as Cointelegraph reported, the total value locked in YAM has surpassed $400 million since the network crashed, according to a report by crypto analytics firm Messari. Others, however, argue that the project’s rapid demise could Taking its place in the history of cryptocurrencies. Kara Miley, head of global public relations at ConsenSys, told Cointelegraph: “YAM is now a cautionary tale. She added: "An audit could have avoided the original problem - the rebasing was missing the basic math functions to get the numbers right, and a proper test suite would have fixed that".

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