The recharge of 100,000 fell to 860 yuan, and YAM collapsed in one day
Produced | Odaily
Produced | Odaily
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(YAM price chart)
The eight staking pools of YAM were first affected. According to the MXC APP data, AMPL fell by 21.16% in 24 hours, COMP fell by 22.09% in 24 hours, YFI fell by 33.6% in 24 hours, SNX fell by 15.19% in 24 hours, and LEND fell by 13.26% in 24 hours. %, MKR fell 4.19% in 24 hours.
Core developer belmore said frankly on Twitter: "Sorry everyone. I failed. Thank you for your great support today. I am so sad."
The tokens of many participants are still pledged, and they have not recovered, but this 36-hour social experiment has collapsed.
In the past 36 hours, YAM has fallen from a high-profile DeFi project with an annual mining rate of 14049% to a jaw-dropping atmosphere.
Many "old leeks": I sigh, I haven't understood the tutorial, and the project will be gone anyway.
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With a pledge of 800 million US dollars in one day, YAM set a DeFi explosion record
Yam Finance is an experimental protocol that is positioned as a liquidity mining aggregator.
Simply put, it is the model of YFI+AMPL, which adopts the mining output method of YFI, but supports almost all mainstream DeFi tokens, and YAM is the same inflation-deflation model as AMPL.
The initial allocation of YAM adopts the YFI model, there is no pre-mining, and there is no investor share. At the same time, YAM adds a key supplementary mechanism to the elastic supply model of the algorithmic stablecoin Ampleforth, that is, part of each supply expansion is used to purchase yCRV (high-yield USD stablecoin) and add it to the Yam repository , governed by the Yam community.
The initial total supply of YAM is 5 million.
At 3 a.m. on August 12, the DeFi project Yam Finance conducted its first token distribution, among which 2 million initial tokens (YAM) were evenly distributed to 8 pledge pools, each with 250,000 tokens. Assignment lasts 7 days.
The 8 pools are COMP, LEND, LINK, MKR, SNX, WETH, YFI, ETH/AMPL Uniswap v2 LP.
YAM, which was just launched, has attracted attention because of its extremely high mining income. Exchanges such as Gate and Bibox have also launched YAM transactions one after another.
In one day, YAM attracted more than 800 million US dollars worth of 8 DeFi token pledge mining, and the speed of starting the amount and the magnitude of locked assets refreshed the records of DeFi projects.
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(The annual income of the eight mortgage pools, the time is from 3:00 to 12:00 on August 12)
However, as more and more funds entered, the income of the eight mining pools plummeted; so Yam Finance launched another 2 pools - YAM/yCRV Uniswap v2 LP pool - the first eight pools were called pool 1.
Before the crash this afternoon, community participants told Odialy that the annualized income of pool 2 can reach more than 20,000%, and a top mine user once obtained an annualized income of 500,000%.
Behind the high income of Pool 2 is the initial allocation of the remaining 3 million YAM. In the first week, the 2 pools can get 1.5 million YAM initial token distribution, which will be distributed through a weekly 50% decreasing mechanism.
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A BUG caused a crash, YAM changed from selling white powder to selling sweet potatoes
The collapse of YAM has a lot to do with the mechanism design of "adjusting the total amount".
The total amount of YAM initial tokens is 5 million, and there will be a "flexible supply adjustment" (Rebase Period) every 12 hours, that is, 4:00 a.m. and 16:00 p.m. Beijing time.
Assuming that the user holds 1% of the total currency, it still accounts for 1% after the rebase, but the amount changes, and more/less YAM can be obtained.
Some community members said that this project is related to a loophole in the "flexible supply adjustment" (rebase) contract. As follows:
And this BUG was discovered by the Yam Finance team as early as early this morning.
The original code should be: totalSupply = initSupply.mul(yamsScalingFactor).div(BASE)
Now written as: totalSupply = initSupply.mul(yamsScalingFactor)
The SlowMist security team stated that due to irregular coding, the YAM contract should have divided the final result by the BASE variable when adjusting totalSupply, but it was ignored during the actual development process, resulting in incorrect calculation of totoalSupply, which was higher than the original value. 10^18 times larger.
To put it simply, the consequence of this BUG is that the actual total amount of YAM exceeds the estimated total amount after each rebase, and a large number of additional Yam tokens are minted.
Since this project is a community governance project, if you want to modify the smart contract code, you must obtain the approval of the community.
The team first stated through Twitter that they need to obtain 35,000 Yam tokens to participate in delegation voting to initiate a proposal before 3 pm Beijing time today, and obtain 140,000 Yam tokens to vote for the proposal, so as to redeploy the contract and fix the bug.
In order to compensate for the loss of revenue caused by user voting, Yam Finance will give double YAM token returns to voting users.
At 14:00, Yam Finance stated that the vote to fix the BUG of the rebalancing mechanism has met the minimum delegation requirement of 160,000 tokens, and the governance proposal will be submitted between 3:00 and 4:00 pm Beijing time.
However, this proposal was not implemented before the second Rebase at 4 pm today, which also resulted in the original BUG not being fixed.
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100,000 changes, a magical journey of 860 yuan
In the past 36 hours, YAM has carried out two "elastic supply adjustments". The first time the number increased tenfold, and the price plummeted from $167 to around $12; the second time the number doubled, and the price dropped from $12 to $2.
For example, the user originally held 10 YAMs at a unit price of $167, totaling $1670; after two adjustments, the user held 200 YAMs at a unit price of $2, totaling $400, a serious loss.
Some users said in the community that they recharged 100,000 yuan to buy YAM, and their current assets have shrunk severely to 860 yuan.
Since the first token distribution at 3 a.m. on August 12, the survival time of YAM is only 36 hours. Many project participants in the community said: "This is the fastest crashing group I entered, and I only have YAM commemorative coins left."
Just before the collapse of YAM, the Odaily editorial department was still researching Y pool mining, and was preparing to buy yCRV to recharge and enter the market. Fortunately, because there were too many steps, and Ethereum was too congested and the miner fee was soaring, the progress of this attempt was blocked. Greatly slow down, for example, multiple smart contract calls failed when buying coins...
So the team just watched the collapse of YAM and lamented that they were lucky to be stopped outside the door.
Recently, the once niche DeFi has become popular, Don't buy it, earn it. (Don't buy it, dig it) has become the slogan of the new leeks, who only stock up on big cakes and buy mainstream old leeks seem to have been abandoned by the times. disuse.
The old leek was educated for 2 years and gradually accepted the 10% annualized BTC financial products, while the new leek is still enthusiastically pursuing the next ten-fold coin and hundred-fold coin.
However, there are always two sides to the story of making wealth. Opportunities are naturally risks.
Everyone thinks they can be the smart former, so who is the "fool" who takes over?
