If you are a fan of DeFi decentralized finance (or decentralized finance), you will probably know Yam Finance. Yam Finance is an emerging DeFi decentralized finance protocol. Accompanying the outstanding new developments of this protocol are the problems faced when involved in severe technical vulnerabilities. So to understand better What is Yam Finance? What is the current situation of Yam Finance? Let’s go to the following article to analyze it in detail.
What is Yam Finance?
Yam Finance is known as a new protocol based on programmatic governance. In other words, Yam is a decentralized financial protocol.
It is built by a team of DeFi decentralized finance experts. In order to create an elastic offer, a manageable treasury, fully manageable on-chain, and above all a fair distribution mechanism. To create a perfect protocol that satisfies both manpower and development.
Yam is considered a cryptocurrency or token, issued according to three principles of no first mining, no allocation and no first sale. To create an equality similar to the YFI token and with an initial value of zero.
Yam Finance’s situation facing a serious technical error
What problems does Yam Finance face?
There was an event for Yam Finance when it encountered a technical defect. The flaw occurred in the rebase contract which caused the number of Yam coins to be generated not as expected or, in other words, more than desired. This does not remove the blocked Yam, and proposals have been made to fix these vulnerabilities. However, there are concerns that these proposals will not be approved by the developers themselves. This leads to major problems because the amount of yCRV confinement will be trapped in it.
What is the result that Yam Finance faces after the technical error
The DeFi Yam protocol collapsed after just 2 days
The result of this technical flaw was that on August 13, Yam Finance’s market capitalization dropped to zero within minutes.
He suffered a terrible shock. Unable to handle the DeFi protocol, the market capitalization of this project dropped to zero in less than an hour when it was discovered that the system had a contractual error.
The price of Yam has been reduced from $ 100 to $ 10 and of course this has no effect on its value for owners during the rebase. So Multiply the $ 10 to $ 1 drop is due to a protocol error.
When it was launched, this protocol was considered to be full of potential. The multiplier after an error in the smart contract comes the overproduction of Yam. You may not be able to take any administrative action as these excess coins will likely be in the reserve contract.
Dragging the impact to other total DeFi cryptocurrencies
Not only did it suffer separately, but Yam also pulled, but other major DeFi cryptocurrencies were also severely curtailed. For example, Compound reduced its market cap by around $ 100 million, or YFI and Balancer dropped from 7% to 13%.
Although the tokens staked are not affected, somewhere it is busy causing heavy losses. Among them, the holders of Yam or Yam suffered the heaviest losses.
After all, Yam’s current value left on the market is only 1%, and its value has returned to 0.
The birth of Yam 2.0
After the troubles in addition to the heavy losses due to the recent technical defect. Yam has decided to integrate the Yam 2.0 platform.
After the incident occurred, within hours, the developers of Yam quickly posted a post on Medium announcing that the development of the Yam 2.0 platform was underway. There are many assessments that perhaps no one will decide to join Yield Farming on Yam on this platform again after the recent incident.
Yam 2.0 will be tested and will actually launch when tested successfully.
Will this new platform help Yam Finance recover what has been lost? Will investors decide to participate in yield farming again on this new platform? These are still questions that have to wait until the Yam 2.0 platform response is announced.
Although its value is currently underestimated, it is not yet known what will happen in the future, especially with the preparation of the Yam 2.0 platform. There is no solid advice here for you when it comes to entering the cryptocurrency market, which is a volatile and uncontrollable market. So, no matter what your decision is, remember to consider, learn and research carefully first.
Yam Finance faced serious technical problems which severely affected its value in the market. Surely through this article you have had a better insight into Yam Finance, right? All of the above are my shares on Yam Finance. Hopefully after this article you will have a more positive view of it, as well as answering the question What is Yam Finance? listed at the beginning of the post.
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