DeFi’s experimental protocol, Yam Finance, almost collapsed last week after the discovery of a fatal error, but the project has since earned $200 million in total value blocked.
According to a report by cryptanalysis firm Messari, Yam remains the 7th largest Defi project in terms of total blocked value (TVL). The TLV is calculated by multiplying the total number of tokens a protocol has by its USD value. Messari reported that Yam’s TVL has doubled from USD 200 million to USD 400 million since the protocol collapsed on 13 August, and commercial activity has increased in the last 24 hours.
How one line of code ended up with Yam Finance
„Clearly, there are some who believe there is value in using funds for YAM’s farming,“ Messari said. The company said that the fact that the project’s migration plan will see existing tokens transferred to a new smart contract may be part of the reason investors have not yet ruled out YAM:
„It remains to be seen whether or not YAM can become a useful financial primitive. One thing is for sure: these kinds of token experiments are not going to go away.
Yam Finance saved at the last minute
This time there’s an audit
According to an August 18 update on Yam’s blog, Crypto Cash security company Peckshield is conducting an audit of the migration contract, which should be completed in two days. Once completed, YAM’s migration will be done in stages.
„After the audit, we will publish the report, implement the migration contract and enable the migration through [the website],“ the blog said. Users will have to burn their V1 tokens and issue new V2 tokens within 72 hours of the migration implementation.
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A provisional Yam V2 contract will store information on the previous balances and will not take into account rebates, so the quantity minted will depend on the underlying part of the total supply of tokens.
Yam V3 will be a fully audited version of the project protocol, with a mechanism to convert YAMv2 into YAMv3. According to Yam, users will vote on the details of this mechanism.