03 Aug 2020
Rest in peace, YamThe newly launched YAM token had a short life, as the token collapsed and lost all its value after just 2 days.
A bug that made future governance action impossible was found in the code, and Yam suddenly needed holders of the token to vote for a bug-fix proposal. This was not successful, and the market capitalization of the token evaporated within few hours.Yam was launched as a “experimental protocol mashing up some of the most exciting innovations in programmable money and governance”, with elastic supply targeting $1 per YAM.Yam even stated that the code was unaudited and that investors should exercise some caution.This is a great example of the state of DeFi right now, with millions of dollars being pushed into new project without investors doing proper research. Many of these new DeFi tokens are moving into untested territory and could come with exceptional risk, like Yam.Yam is now trying to rescue the project by migrating to a new system. They have already collected $75,000 to fund an audit of the YAM codebase.