YAM announces a new protocol migration plan while its value sets at almost zero so the team hopes to save the project with the new plan but will it be enough? Let’s find out more about the upcoming altcoin news.
As explained in a Medium blog post, the YAM finance team announced plans for migration to a new protocol named YAM 2.0 and the migration will be implemented if there’s enough support from the crypto community. The migration came after the developers failed to resolve a bug found in the rebase contract. The project then crashed and lost more than 90% of its dollar value in less than an hour. As YAM announces, there was a bug in the rebasing mechanism and it minted the excess supply for the token to the governance reserve. With the protocol unable to reach a quorum, the bug fix was unsuccessful.
The YAM developers assured the users that the funds are unaffected. Rebasing refers to the process of setting up a new base level for the price index and as an elastic supply token, this process could trigger push and pull pressure on the token price to the $1 with 10% used to buy yCRV which is the high-yield USD stablecoin.
The YAM financial team proposed a two-phase migration plan that will see the protocol switch to a YAM 2.0 version as against the unaudited first version.
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The phase 1 of the process will involve creating a migration contract that will oversee a token burn. No rebase will occur after the token burn but there will be a full audit of the project which is absent from the current situation now. after the audit, a second migration will occur which will result in the emergence of the YAM v3.
— Yam Finance (@YamFinance) August 14, 2020
Following the migration, the team has a plan to reward the holders that tried to save the protocol when it faced a crisis. Despite the plan, the community will be the entity that will make the decision about the new project. While yield farming saw huge participation in the last few weeks, some experts call of caution as most of the projects are pump and dump schemes. ShapeShift CEO Erik Vorhees tweeted that the yAM project resembled a scam project adding that these projects don’t offer tangible upsides for the decentralized finance space.
The ethereum founder Vitalik Buterin distanced himself from the current yield farming hype and advised all the crypto investors to do their due diligence before putting up the equity in any project.
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