According to the reports, the YAM v3 launch is all set for Sep 18 (Friday) as the team announced that the bugs/issues found in the recently highly popular rebase-positive yield farming/liquidity mining YAM DeFi protocol have been fixed. The YAM/yUSD LP incentives will start by Sep 19 and first rebase will happen on Sep 21.
YAMv2 is already showing significant improvement in price indicating market’s euphoria over the rise of phoenix from the ashes. At the time of this writing, the price is up ~35% from $24 to $32 and momentum appears to be rallying. Over $64M worth of YAMv2 have been traded in the past 24 hours!
In a medium post released on Sep14 titled “YAM Replanting: Migration and Launch”, it was declared that a fully functional and audited protocol is now underway, after a successful audit by PeckShield. The interim transitory governance period for YAM v2 ended on Aug 31.
The Story Of the YAM
Borrowing concepts from the rebasing stablecoin Ampleforth (AMPL), Compound governance module and automated yield farming / liquidity mining pioneer yearn.finance (YFI), the original YAM or YAMv1 was introduced to the world on August 11. It was described as an experiment in DeFi and governance.
An elastic supply asset, YAM employed a rebasing mechanism where the supply adjusted to the market demand. It aimed to target the price of 1 USD per YAM. The salient feature was that 10% of each supply expansion was used to acquire yCRV for addition to YAM treasury, controlled by on-chain community governance.
YAM used a fair distribution mechanism, where participants were rewarded with YAM for providing liquidity to COMP, LEND, LINK, MKR, SNX, WETH, YFI and ETH/AMPL Uniswap LP token pools. Like YFI, the project began with no founder’s share or premine. It was also announced to have no inherent value.
YAM Governance Bug And Transition To YAMv2
At approximately 6PM UTC on Aug 12, a bug in the YAM rebasing contract was discovered by the team. It resulted in minting of more YAM than were supposed to be provided to the Uniswap YAM/yCRV pool, sending large amount of excess YAM to the reserve. This would result in the failure of the governance mechanism, since it became impossible to reach quorum and treasury funds were locked.
The team made attempts to rectify the issue, with help from the community but it didn’t work. The price plummeted from $183 to less than $1, in a matter of days soon afterwards. The YAM community managed to remove 75% of pool’s liquidity.
It was however announced that work would begin on improved, audited and clean YAM protocol via a migration contract, if community funding was secured. Upon successful fund raising, YAM v2 migration was started on Aug 19 to last for 72 hours – until Aug 22. It was used for determining the initial parameters of YAMv2 through voting, without negative rebases and credited at a ratio of 10:1.
YAMv3 Initial Parameters
The YAMv2 to YAMv3 will be a 1:1 migration with no deadline, with 50% available immediately and 50% vested over 30 days. The YAM/yUSD Uniswap LP pool will receive 925K YAMS, on a variable schedule. yUSD (yyCRV) will be the reserve asset and YAM/yUSD will be the pool, used for treasury purchase. YAM/ETH Uniswap LP pool will be used for liquidity provision, though it won’t be incentivized.
The delegators with less than or around 27 votes will receive 27 YAMv3 reward and those will over 27 votes will receive 1:1 reward for every YAMv3 delegated. The rewards will be vested for 3 months. A special multi-sig will be creation for people who missed migration from YAMv1 to v2, it wont be applied for people purchasing v1 tokens after migration window expiration.