- As hundreds of millions of dollars in crypto flooded into Yam Finance overnight, assets in Balancer, Curve and Yearn fell by 16%, 24% and 38% respectively
- Keeping the risks on the launch day, Robert Leshner, advised for a governance vote the team that 160,000 tokens would be required
- Yam’s failure resulted in a loss of $750,000 curve tokens stored in the project’s treasury
It’s the small issues which are overseen that bring great consequences. YAM, a Defi meme coin has failed in its last moments in launching a project due to bug within its rebase function revelead in blog post. This resulted in a loss of $750,000 curve tokens stored in the project’s treasury.
From Zero to Hero in Overnight
Yam Finance, the unaudited DeFi platform which didn’t exist before Tuesday, gained $585 million assets within 24 hours after their first post on medium explaining the project. The token was born with zero value and without an audit and reached impressive figures in a short time. As hundreds of millions of dollars in crypto flooded into Yam Finance overnight, assets in Balancer, Curve and Yearn fell by 16%, 24% and 38% respectively, reported the DeFi pulse.
Yam planned that there will be two phases for a total supply of 5 million tokens. Primarily, 2 million tokens will be disturbed to farmers and enabled farming through eight different tokens. In the further step, 3 million tokens will be used to reward the liquidity providers of YAM pool on Uniswap. YAM holders will entirely govern protocol once the tokens are distributed.
Discovery of a code bug a few hours prior to its launch was a huge blow to the project and it rushed to fix through its governance system. This bug was resulting in more tokens to be minted than the designated. The feature of project’s on chain governance will be unusable due to the bug.
The team made two proposals to fix the issue: to reset rebase levels and essentially restart the system. Keeping the risks on the launch day, Robert Leshner, advised for a governance vote the team that 160,000 tokens would be required. A post was made on medium summarizing the events and added that if governance is unable to submit prior to the second rebuse, any further actions won’t be possible. The possible chance of fixing the bug has slipped early Thursday morning.
Reacting to the failure of executing a proposal about rebasing bug, yam finance co-founder Brock Elmore tweeted that he felt sorry for this and thanked everyone who supported him along the process.
According to the creators of the protocol, the community of YAM enthusiasts deserves a second chance. Thus, there may be an audit of YAM 1.0 contracts in order to support the release of version 2.0. YAM announced in a blog post that they are drawing plans for a new version of the yield farming protocol. The team hoped that protocol would avoid having rebased bug in the codebase and grant lost rewards along with a bonus to those who acted to save the system.