Yield Farming Protocol YAM

This latest experimental YAM protocol is the newest crypto trending online. Many YAM farmers are already getting excited about a huge return prospect, while others are still concerned about the risks. The newly launched projects present an elastic supply token that is similar to the defi crypto Ampleforth, which can expand and contract depending on the market conditions, intending to seek price stability and a peg to the USD.

What is YAM?

You may be wondering, what is YAM? YAM is an experimental protocol mashing up a few of the most impressive innovations in programmable money and governance. A team of DeFi natives built it, and it presents the following;

• An elastic supply of YAM farm that seeks ultimate price stability.

• A governable treasury to add additional support stability to YAM farm.

• Fully on-chain governance to allow decentralized control and evolution from Day 1.

• An equal distribution mechanism that incentivizes crucial community members to take the reins of governance actively.

One of the fantastic dissimilarities about the YAM farm viewpoint is that 10% of each supply expansion (which is the rebase) is used to purchase yCRV, a high yielding basket of USD stablecoins. It is given to the YAM treasury, which is guided via community governance.

However, YAM is continuing to distribute tokens without any pre-mine or founder’s shares and no VC interest. It invariably means that any individual in the world has an equal opportunity staking distribution.

How Can I Earn YAM?

Since there is no pre-mine or sale or any allocation of a portion to the founding teams, it means that farmer token is distributed equally across eight YAM staking pools which include;

• COMP

• LEND

• MKR

• SNX

• WETH

• YFI

• ETH/AMPL Uniswap LP tokens.

Any yield farmer having any of these farmer token can stake those tokens into YAM’s front end and start earning YAM. However, since the earlier distribution of YAM, there has been a stimulated YAM/Ycrv Uniswap pool where users have the option of earning bonus tokens for bringing liquidity into the Defi Amms.

Farmers Token apply and distribution

Over 5,000,000 YAM tokens have been supplied. However, with the way the farmer token is going, we might experience changes with the YAM supply figure due to future rebases. The rebase period will be witnessed in a 12 hours interval and with an earlier rebase set to occur approximately 12 hours after the wave 2 distribution (that is YAM Uniswap liquidity)

According to the information before the launch on August 12, there will be over 250,000 YAM tokens. This YAM tokens will be spread to stakers across the eight pools listed above in the first wave of distribution. Simultaneously, the Wave 2 Uniswap liquidity will witness a 1.5million distribution, which will see over 3,000,000 incentivized in the first week of launch, decreasing by 50% each week after.

YAM review Few days after the launch

A few hours after the launch on August 12, the data from CoinGecko showed that the YAM value fell from approximately $60million at 07:UTC to $0 by 08:15. That is barely 35 minutes later after. The YAM token price, which was hovering around $167 at 17:30 UTC, fell to barely $14 at just before 08:00.

Source: Coingecko.

A last-minute attempt to save the token, which was programmed to keep disparity to the USD through loosening or contract supply by the co-founder, Brock Elmore, fell, which made him declare the project dead same day. And we witnessed YAM market value going back to zero a few hours later. The projected revealed their intention to move over to YAM 2.0 a few hours later at press time.

YAM price chart before the fall. Source: Bitcoin.com

Governance

One of YAM’s main objectives is its role in governance and the power to determine and update the YAM protocol’s functionality. It can be; oracle usage, rebase functionality, inflation, incentive design, the YAM treasury, etc.

As we revealed above, since users retain the 10% of all the rebase, which is used to buy yCRV, it means that the holders have the power to vote on how that capital will be distributed in the ecosystem. It could be in any imaginable form like a mechanism that adds robustness or security to the protocol or even economic right over its cash flow.

Even though nothing has been revealed, it is worth noting that YAM holds zero inherent value (similar to YFI), and whichever value that is gotten from the token is by the token holders.

Conclusion

Since we have seen that the YAM protocol is moving in a community – organic approach instead of raising capital via VC’s and ceding large portions to the founders, team, or even the protocols foundation, we believe that YAM is showing a promising new stability protocol to rival Ampleforth. We believe that the project will have a highly rewarding opportunity in the future.

For more updates on YAM protocol, visit the official blog post. For people who are interested in YAM farm, you can do so via YAM.finance.

Lastly, to stay up to date on YAM, you can see updates via Twitter.