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Overnight sensation Yam Finance, even BitMEX founder joins the sweet potato digging craze

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Overnight sensation Yam Finance, even BitMEX founder joins the sweet potato digging craze

Last night, the new project Yam Finance launched liquidity mining, causing a frenzy in the DeFi space for the Yam token. Even BitMEX co-founder Arthur Hayes joined the Yam farming craze.

The Sudden Rise of "Yam Finance"

Yam Finance is a new project similar to Ampleforth, aiming to create a "low-volatility cryptocurrency" with an elastic supply adjustment mechanism called reBase. The elastic supply adjustment mechanism of Ampleforth is that when the token AMPL issued by Ampleforth deviates from the target price, the protocol will implement "expanding" (quantitative easing) or "contracting" (quantitative tightening) to achieve a new price equilibrium among all AMPL holders.

The YAM protocol builds upon the elastic supply adjustment of Ampleforth and adds new mechanisms to further enhance the token's price stability. Specifically, each time YAM implements expansion, a portion (about 10%) of the tokens will be used to purchase yCRV (an interest-bearing stablecoin, akin to a bond), which will be added to the Yam protocol's treasury for management by the Yam community.

YAM's initial target price is $1, and reBase is conducted every 12 hours.

Source: yam finance

Everyone Farming Yams

Yam Finance's token YAM is distributed similarly to Yearn Finance, with no pre-sale or pre-mining. The only way to obtain it is by participating in liquidity mining by staking assets on their platform. The first round of token distribution started at 3 am today, with the YAM tokens distributed to eight pools: COMP, LEND, LINK, MKR, SNX, WETH, YFI, and ETH / AMPL Uniswap v2 LP. Participants can earn YAM tokens as rewards by staking tokens in the corresponding pools. Data shows that since YAM mining started, the total locked value in Yam Finance has exceeded $340 million, with even BitMEX co-founder Arthur Hayes joining the Yam farming.

The second round of token distribution will begin at 3 am on August 13, distributing 3 million YAM tokens through the YAM / yCRV Uniswap pool, with 1.5 million tokens distributed in the first week, decreasing by 50% each subsequent week.

Beware of Contract Risks

Yam Finance is not developed by an unknown team; founders like Brock Elmore, Trent Elmore, Clinton Bembry, Dan Elitzer, and Will Price are developers with some reputation in the blockchain space. However, investors should still be cautious of smart contract risks, especially as Yam Finance's contract code has not yet been audited. Compound founder Robert Leshner also pointed out on Twitter that both YAM and AMPL tokens are not created using the ERC20 token standard, and using these non-standard templates as collateral or integrating them into pool protocols may pose security risks.