The YAM DeFi stablecoin drove liquidity farmers crazy after its launch as more than $100 million is now on the platform’s unaudited smart contracts. YAM is an algorithmic stablecoin with a variable supply similar to the one of Ampleforth as we are learning more about it in the following altcoin news.
The YAM Defi stablecoin is experimental and it’s a smart contract-based project which is unaudited but this is not a good enough reason to stop liquidity miners from locking more than $100 million in it. The Defi craze continued despite the slight dip across the market. The YAM algorithmic stablecoin is the latest fad that attracted millions from liquidity miners. YAM is an algorithmic stablecoin with a dynamic supply that can expand depending on the market conditions to maintain the same price of $1. The underlying idea is similar to Ampleforth but the implementation is different.
YAM: An Experiment in Fair Farming, Governance, and Elasticity https://t.co/cyzvHZ2Blx
— Yam Finance (@YamFinance) August 11, 2020
The project has a twitter account with one post on Medium and a simple user interface. It seems that this is quite enough for success by today’s standards. Liquidity got into the platform for the YAM token which now trades over $80 and $100 million locked in the project’s smart contracts. While some portion of the activity should be attributed to the community’s recklessness, there is something about its supply model that could contribute to the interest in the governance token.
The YAM stablecoin supply expansion will result in purchasing Curve iEarn LP which relates to Curve as one of the hottest projects on the market. Purchased yCRV will bring the project to the treasury which will be governed on-chain by the YAM holders. In the meantime, the team told the users that the smart contracts are unaudited and encourage a cautious approach. It also advised against purchasing the tokens on an open market. As it can be seen in the past, retail investors with no understanding of the algorithmic stablecoins could suffer from rebasing which happened to Ampleforth.
YAM is a perfect choice for extreme speculators that are able to tolerate risks in the quest to earn higher rewards. The rest of the community can wait a little longer and just learn more about it before getting the hands dirty.
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