Mid-August, the controversial Decentralized finance (Defi) project, Yam.finance worked out a rescue plan to settle its investors following the detection of a bug in its system. The official announcement which revealed the administrative plans designed to cushion the devastating event was put up on Twitter.
According to an initial announcement about the possible network collapse, about $400 million in YAM tokens was announced to have been lost due to the security breach on the system.
“We are urgently investigating a potential flaw…We strongly advise exiting the Uniswap YAM/yCRV pool prior to rebasing at 8 am UTC (35 mins),”
Yam.Finance put up the tweet shortly after the incident in August. yCRV is a basket of yield-generating stablecoins on the Curve protocol.
The flaw described above proved fatal to the system’s equilibrium and both YAM’s token price and market capitalization plunged by a staggering 97% within an hour.
Platform Relaunch (YAMv2 To YAMv3)
Following the unforgettable circumstance, the Yam Finance ecosystem announced a system relaunch where it eventually introduced a migration of the initial V2 YAM tokens to a more secure V3 system.
In the course of the platform relaunch, a major governance decision led to the changing of the YAM reserve assets to USD This was immediately followed by an audit of the platform, imbibing some confidence into potential investors. Also, funds for a bug bounty was set aside from funds from the project’s Gitcoin grant.
YAM Technical Analysis (17% 24-Hour Loss)
According to stats available on CoinMarketCap, the YAMV2 token is now trading around $17.5. This presents a considerable 17% loss in the 24-hour timeframe. The coins rank well among top losers in the defi space today and compete with the likes of LEND and UMA in percentage losses.
The market capitalization of YAM has plummeted to just about $65 million as of the time of writing. This was a plunge from $475 million in about one month ago.
YAM maintains fairly constant market sentiment with a 60% market optimism. Although, there are 40% chances that its markets may plunge further into the maturity of the trading day.
The YAMv2 tokens are currently riding an intense bear market. The tokens plunged through a series of support levels, eventually crashing below the $18 area as of today.
- Next level of major resistance lies at $18
- Next key support level at $16.5
- RSI levels out at the 40.0 level.
Influencer’s Opinions on YAM Finance
Initially, in August, when the catastrophic incident happened, Yam.finance creator, Brock Elmore expressed his regrets on Twitter following the official announcement of the security breach.
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 were, and it may be offering instructive lessons for broader infrastructure changes.”
Also, according to twitter influencer Trent e, the future of the YAM ecosystem is in the hands of the community.
The YAM influencer expressed that while the popular YAM rebasing is a step forward in both administrative and economic advancement in the YAM financial system, the overall growth of the tokens solely lies in the hands of its investors.
- Platform successfully rebased and added liquidity to their treasury.
- YAM finance recently underwent migration on yam.finance and also deployed rewards to the YAM/yUSD pool.