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YAM falls in style - the cryptocurrency YAM, a mad scientist experiment of yield farming , very fashionable in decentralized finance. As might be expected, the uncontrolled attempt quickly turned into disaster. After the discovery of a bug, the YAM went from 170 dollars to… a few cents.
Less than 48 hours for a moon-hell round trip
Yesterday, August 12, a first tweet from the YAM Finance team announced the discovery of a " bug" in the unaudited smart contract of their flawed protocol. It was to be expected.
Even if this first message is meant to be reassuring, another major problem will quickly appear.
The YAM project in less than 24 hours , seen briefly up 600 million of crypto-asset be involved (staking) in its protocol. A madness when we remember the siphoning of funds from another smart contract poorly audited in 2016: TheDAO . A total of 3.6 million ethers had been stolen at the time.
Coming back to the fatal problem, this morning, the YAM team explains, in a second tweet , that a new governance proposal was urgently submitted to the vote of the owners of YAM. They also urge users to withdraw their funds from the YAM / yCRV liquidity pool on Uniswap as soon as possible . The smell of fir was already very strong.
And that's it ! There is nothing left
Just a few minutes later, Brock Elmore , developer of YAM Finance, announced that he was throwing in the towel because of a critical flaw in the smart contract. The latter prevents the implementation of the corrective of the new governance proposal.
The rest can be summed up with this famous meme from South Park:
Obviously, at the sight of the disaster , even the most fanatic supporters of YAM quickly became disillusioned. In addition to the price, which fell from $ 170 yesterday to a low of $ 0.57 this morning (see below), the funds involved in the rotten potato protocol have also melted like snow. Crypto stakes have been more than halved , going from over $ 600 million to $ 280 million, or -55% in just 2 hours.
If there is "much" of YAM crypto actives blocked in the protocol, it is also perhaps because the transaction costs of gas on the Ethereum network (which is the token YAM) are gone completely crazy in parallel.
At least the YAM teams warned from the start that all of this was experimental and that "YAM has no intrinsic value" to calm the ardor of the sorcerer's apprentices of decentralized finance. We pray very hard that another experiment in the genre does not end up second TheDAO! Ethereum may not survive it this time around.
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