The rescue operation failed, YAM collapsed, and the project declared failure

巴比特

2020-08-13 17:28 (UTC+8)

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37 hours, this is the entire life cycle of YAM. From the stars to the moon to the collapse, YAM taught DeFi a profound lesson.

Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), by Kyle, published with permission.

Editor's Note: This article comes from

Babbitt Information (ID: bitcoin8btc)

, by Kyle, published with permission.
According to the latest news, after trying a series of rescues, belmore, the core developer of the YAM project, finally announced that the rescue failed. In just 36 hours, the locked value once reached 600 million US dollars, and the DeFI project, which has been treated by many stars, has gone through the entire life cycle.
On August 12, the DeFi project YAM Finance (YAM) started liquidity mining. This so-called "AMPL+YFI" project attracted USD 76 million in locked value within 1 hour of its launch, reached USD 200 million in 6 hours, and approached USD 600 million in 24 hours, mainly because of the high returns brought by YAM , in the 8 fund pools provided by YAM, the annualized income has reached 9000% - 20000%. The entire DeFi is paying attention to this high-yield project, and many well-known industry big Vs are calling and participating.
On August 13th, a loophole was found in the YAM contract, resulting in more YAM being generated than expected. The official twitter says,

We found a bug while rebase contract. Please read the following: All funds in the mortgage contract are safe, as this has nothing to do with the protocol. The user's YAM balance is also not affected. A rebase after the initial rebase will generate more YAM than expected. Note: The sell function slips 10% off the Uniswap cap, meaning additional YAM generated goes into governance-controlled reserves. To address this issue, we propose a two-part proposal:

1. Set Rebase to 0, which will pause Rebase to allow us to achieve a full repair.

2. Reset the YAM in the YAM reserve to zero, which will remove the inflationary YAM in the reserve.

In addition, the official is calling on YAM holders to help the restoration proposal pass through proxy voting.

YAM officially launched the "SAVE YAM" initiative, and issued a repair proposal vote, requesting YAM holders to vote by delegation. The proposal needs 160,000 YAM votes to be implemented.

At around 13:30 on August 13, the YAM contract repair proposal was supported by the 160,000 YAM required for approval. The agreement will have the opportunity to successfully modify the contract, thereby fixing the bug and allowing the project to continue. However, the project party stated that this does not mean that YAM has been "saved". The governance proposal will be submitted between 3:00 pm and 4:00 pm Beijing time, so the YAM governance proposal will not be implemented before 3:00 pm.

Around 15:30, the YAM official said again on Twitter that a proposal to fix the loophole in the flexible supply adjustment contract has been submitted. We are urgently investigating a potential bug that could prevent the implementation of the proposal. We strongly recommend exiting the Uniswap YAM/yCRV pool before rebase at 8:00 UTC (16:00 Beijing time). Then the official tweeted again to remind: If the governance fails to pass the proposal, the yCRV accumulated during the rebase will face the risk of being unable to move.
At 16:20, Belmore, the core developer of YAM, tweeted: "I'm sorry, everyone. I failed. Thank you for your great support today. I am so sad."
This means that the project party announced that the YAM rescue operation failed.
Regarding the failure, Bitcoin developer James Prestwich stated that there was a "serious error" in the rebase logic of the Yam protocol. He explained: "In particular, this rebase bug resulted in the minting of billions of YAMs to the governance repository. These YAMs did exist but could not be voted on. This means that no voting proposals can be passed because the proposals will never reach the required number of votes."
"1. There is a serious problem with the rebase logic.

2. Governance can no longer be achieved.

3. $750,000 in yCurve tokens locked in governance.