Yam Finance, a DeFi protocol that imploded due to an inherent smart contract bug is set to make a safer return.
Yam 2.0 Incoming
Yield farming is the talk of the town in the crypto industry and several up and coming protocols are looking to tap this burgeoning space by luring “yield farmers” with attractive incentives.
The Yam Finance project was one such monetary experiment that essentially amalgamated Yearn Finance and Ampleforth into a single offering.
However, the project was short-lived as a serious vulnerability in its smart contract pertaining to “rebase” logic led to its spectacular downfall. Specifically, the protocol’s native coin, YAM fell from almost $160 to under a dollar in just over a day.
Nonetheless, after leaving a sour taste in its community’s mouth, the sweet potato project now wants to make a return.
In a Medium post published on August 14, Yam Finance’s developers hinted at relaunching the project on new, audited smart contracts.
The developers explained a migration plan that will involve the existing YAM tokens being migrated to a new smart contract with a functional rebase.
Details of the Migration
According to the announcement, the migration will happen in two steps.
First, the YAM Deployer address will set up a migration contract that will enable YAM holders to burn their current tokens and mint YAMv2 tokens before a certain deadline. Notably, the migration contract will be thoroughly audited prior to deployment.
It’s worthy of note that YAMv2 will have no rebase in that the function named “balanceofUnderlying” on the current YAM token contract will be leveraged to ascertain the number of YAMv2 tokens minted.
Further, YAMv2 will have no on-chain governance functionality. The developers plan to implement off-chain signature voting to allow YAMv2 holders to signal their preferred path forward.
Second, the entire Yam ecosystem will be audited and redeployed as YAMv3.
Holders of YAMv2 will be able to migrate to the updated YAMv3 token through an additional contract. More details pertaining to the timing and audits of the smart contracts will be released soon, the announcement adds.
Additionally, in a bid to reward those who displayed their confidence in the project during its low times, Yam developers will “strongly advocate” to duly compensate YAM token holders, depending on the outcome of a community vote on the pertinent governance proposal.
Whether the transition to Yam 2.0 remains hassle-free remains to be seen.