DeFi News

Alarm Sounds As Hot & Unaudited DeFi Potato, YAM, Locks USD 387m In Hours

Apparently, decentralized finance (DeFi) is not risky enough for some people – the riskier the better(?). These have found a new thing to make seemingly popular, namely, pouring millions in an experimental and unaudited project.

First, there was yield farming in the wild world of DeFi, spiced up with governance tokens, and now some yield farmers have turned from already, objectively risky business to a freshly launched DeFi project – YAM.

Since its debut on the Uniswap decentralized exchange yesterday, its price increased by 26%, to almost USD 88 (10:54 UTC), while trading volume surpassed USD 12m in less than a day.

Also, per Yamalytics, in 15 hours since its launch, total value locked into Yam Finance has climbed to USD 387m.

In comparison, total value locked into major DeFi platform Aave (LEND) stands at USD 530m today. The platform is fourth by this measure among DeFi projects tracked by Defipulse.com.

According to its team’s post from August 11, YAM is an elastic supply crypto, expanding and contracting supply in response to market conditions. It’s “an experimental protocol” in regards to governance, elasticity, farming, etc.

As for the audits, they wrote: “None. While the initial creators of the Yam protocol have made reasonable efforts to attempt to ensure the security of the contracts, […] nothing approaching the rigor of a formal audit has been conducted at this time.”

They warned of the crypto’s experimental nature on their twitter account as well:

Dear $YAMFam,

Since apparently I wasn’t clear….

IF YOU #FOMO INTO THIS YOU WILL DIE A LONELY TERRIBLE DEATH AND YOUR LAST MEMORY WILL BE THE TASTE OF STALE $YAM BETWEEN YOUR TEETH AND YOU’LL MISS THE VALUABLE PART OF THE BULL RUN.

Stop ruining it. https://t.co/scrR2UoOrR

— Taylor Monahan (@tayvano_) August 11, 2020

Here are a few more reactions and complementary jokes:

Now you know why traditional VCs have a hard time coming into crypto. Try explaining YAM farming to the investment committee…

— SpartanBlack (@SpartanBlack_1) August 12, 2020

__

Don’t ask me what it does.

I’ve already assumed that my money is gone.

— Loma (@LomahCrypto) August 12, 2020

__

resistance against the $YAM farming overlord is futile pic.twitter.com/rX9w9h0CiQ

— 찌 G 跻 じ ⚡️ (@DegenSpartan) August 12, 2020

Leave a Reply

Your email address will not be published. Required fields are marked *