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A 3 Minute Guide to YAM Finance

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Yam is a standard protocol that offers some of the notable innovations in the field of governance and is showing rapid growth. It is also considered as being a protocol that provides exciting features.

YAM is commonly referred to as a supply token or a crypto asset. This supply of the tokens commonly differs and varies according to the market conditions. 

In this article, we will provide a complete guide of YAM Finance and its overall aspects. Let us look into this YAM Finance review in detail now.

Background

YAM Finance was built as a complete protocol in the user community and continued to show rapid growth since its launch. The Yam protocol was initially established by five individuals namely: Brock Elmore, Trent Elmore, Clinton Bembry, Dan Elitzer, and Will Price

Yam is an experimental protocol that offers some of the most exciting innovations in programmable money and governance. Yam Finance broke all sorts of DeFi records, achieving at over $600 million in total locked value in less than 36 hours after launch.

What is YAM Finance? 

YAM is generally an elastic supply token. YAM finance mainly aims to achieve a 1USD peg per YAM. The stability mechanism in YAM is supplemented by one key addition to the existing elastic supply models such as Ampleforth.

One of the most distinguishing factors of YAM is that about 10% of each supply expansion is further used to buy a particularly high yielding basket of the USD stablecoins generally known as yCRV. They are being assigned to the YAM treasury.

How Does YAM Finance Work?

YAM protocol employs the Compound governance module. This helps in ensuring that all the required updates to the YAM protocol are made completely on-chain. This is achieved through community voting.

At the initial stage, the YAM token is valued at the zero value. Immediately after the launch, the contract ownership in YAM protocol is being assigned to the governance contract which is time-locked. They are controlled by the YAM holders

YAM Token

YAM Token is developed as a token with zero value. This means that it has no inherent value other than speculation. Since it is not a stable coin, the long term use of the $YAM as a synthetic asset is not advised. It changes its supply in an attempt to stabilize the price of the token.

The YAM Token makes use of yCRV which is pegged to around $1 peg as the reserve currency. Each of the supply expansions is commonly referred to as an inflating rebase. A part of this token is minted and further used to create the treasury. This treasury is then in complete ownership of YAM holders through the governance.

Where To Buy YAM Tokens?

YAM tokens are more commonly staked across 8 YAM staking pools which can be listed below:

  • COMP
  • LEND
  • LINK
  • MKR
  • SNX
  • WETH
  • YFI
  • ETH/AMPL Uniswap LP tokens

The users who hold tokens of these staking pools can stake them into the front end of YAM and begin earning Yam coins. Also after the initial distribution, there takes place an incentivized protocol through the uni swap pool where the users can earn bonus tokens for offering liquidity.

A migration contract will be set up by the YAM Deployer address. This enables the YAM holders to mint the YAMv2 tokens by burning their tokens within the given deadline. The number of YAM tokens minted will depend on the balance of the underlying function on the current YAM token contract.

YAM Features

YAM offers some of the extensive features which can be listed below:

  • It provides an elastic supply to achieve price stability
  • The tokens are further allocated to the governable treasury
  • They offer complete on-chain governance to achieve decentralized control
  • It offers a transparent distribution mechanism to provide incentives to its community members.

YAM Cryptocurrency Price Analysis

YAM offers an equal opportunity for staking distribution in order to attract a wide number of users in the community. It has no VC interests and founder shares and is completely distributed in the spirit of YFI

  1. Total Supply: 5,000,000 YAM
  2. Rebase Period: Every 12 hours (8 am UTC, 8 pm UTC)
  3. The portion of Rebase Used for Reserve: 10%
  4. Asset Contributed to Reserve on Rebase: yCRV
  5. YAM Threshold to Submit Governance Proposal: 1% of Total Supply
  6. The quorum for Governance Proposals: 4% of Total Supply
  7. Proposal Voting Period: 48 hours
  8. Queue After Successful Proposal: 24 hours
  9. Pools: 8 (COMP, LEND, LINK, MKR, SNX, WETH, YFI, and ETH/AMPL Uniswap v2 LP)
  10. Distribution Amount: 2,000,000 YAM (250,000 YAM per pool)

YAM Supply & Distribution

YAM ideally has a supply of 5,000,000 Tokens in total. Owing to the feature of its token, the supply of the YAM figures depends on the change in the rebases.

YAM primarily distributes over 2,000,000 YAM (250,000 per pool) per week to the users who hold tokens of the either of the eight staking pools. After this, a second distribution wave will be incentivized with 3,000,000 YAM through the Uniswap liquidity.

YAM Supply

Conclusion

One of the main aspects of YAM is the concept of governance and the ability to check the functionality of the YAM protocol. These include inflation, incentive design, oracle usage, Yam treasury and more

There are no smart contract audits undergone by YAM. Its source code can be visible on the submitted contracts to Etherscan and also on Github. YAM is considered to be a stable protocol. It ideally offers a community organic approach in its system.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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