Controversial Decentralized finance (Defi) project, Yam.finance is working out a rescue plan to settle its investors following the detection of a bug in its system.
According to an initial announcement about the possible network collapse, about $400 million in YAM tokens would be lost due to the bug described.
“We are urgently investigating a potential flaw…We strongly advise exiting the Uniswap YAM/yCRV pool prior to rebase at 8am UTC (35 mins),” Yam.Finance tweeted today. yCRV is a basket of yield-generating stablecoins on the Curve protocol.
The flaw described above has proven fatal to the system’s equilibrium and both YAM’s token price and market capitalization plunged by a staggering 97% within an hour.
According to stats available on Coingecko, YAM token, which was previously trading around $170, has fallen drastically, and now trades at $0.92. Besides, further downside seems highly possible as millions are being locked out of its circulation.
The market capitalization of YAM has plummeted to just about $19.5 million as of the time of writing. This was a plunge from $475 million in about one hour ago. The price of YAM is currently trading at about $0.92 apiece.
Famous Responses To The Situation
Yam.finance creator, Brock Elmore expressed his regrets on twitter following the official announcement.
Also, according to Collins Belton
“As $YAM plays out, I’ve become more convinced that this may be a key marker on the “true decentralization” launch spectrum for #DeFi projects like COMP was, and it may be offering instructive lessons for broader infrastructure changes.”