Today in DeFi - RIP YAM, YAM 2.0?, CRV Launch
RIP YAM
It was a short-lived, beautiful and wild experiment, but YAMs have officially bit the dust. The ambitious DeFi project, born and launched in ten days, died off in another two.
What happened?
An error in the rebasing contract meant that the second YAM rebase, which happened 24hr after launch, would mint way too many YAMs. Since YAM governance requires a quorum of 4% of total supply, this meant that quorum could never be reached.
This issue was meant to be fixed through an emergency governance measure, detailed in yesterdayβs TiD.
The community pulled through, gathering the 160,000 delegated YAMs needed to pass the proposal to fix the issue. However, at the last minute, it was found that the fix wouldnβt work.
The Aftermath
YAM governance failing and the impending rebase(every 12 hours) meant that YAM price would drop further. This affected all YAM holders to some degree, but it critically threatened the YAM/yCRV Uniswap Pool. Because of the dynamics of Uniswap pools, if a single asset drops by a large amount, it can mean large losses for LPs.
While some LPs were able to get out in time, others got βImpermanent Rektβ. The way that AMMs work, if a single asset goes down a great deal, it can lead to significant losses for the LP. It was estimated that $750K was lost to LPs.
Luckily, farmers who didnβt deposit in these pools experienced minimal loss. Traders who bought YAM obviously didnβt fare as well.
YAM 2.0
A few hours after launch, the team put together a post-mortem post.
They explained the events that unfolded, and also announced that they will pursue a new version of YAM:
βThe distribution mechanism and events of the past 36 hours have brought together an immensely special community around YAM.Β We believe this community deserves the chance to persist.
We will be setting up a Gitcoin grant to coordinate a community-funded audit of the YAM contracts.Β If the funding goal is reached, upon the completion of the audit, we plan to support the launch of YAM 2.0 via migration contract from YAM.β
CRV Launched
In a very decentralized twist, CRV was launched by an anonymous βChadβ before the team had a chance to. The team analyzed the code and since it seems to be unchanged, that contract is now the official deployment.
A few hours after the anonymous deployment, the team announced and launched the official UI at DAO.curve.Fi. You may now go to DAO.Curve.fi to stake your Curve LP Tokens to earn CRV, vote(on future proposals), claim Pre-CRV, and see your CRV holdings.