YAM Finance, the latest yield farming sensation, witnessed a bug in the rebase mechanism. However, the developers of the protocol assure users that funds are unaffected.
Bug Found in Unaudited DeFi Project
Developers at new DeFi sensation have found a bug in the protocol’s rebase contract. The team announced the news via Twitter hours ago.
Rebasing refers to the process of setting a new base level for a price index. As an elastic supply token, rebasing should trigger push/pull pressure on YAM token price towards $1 with 10% used to purchase yCRV, a high-yield USD denominated stablecoin.
According to the tweet, the bug will cause inflation in the number of YAM token minting after the initial rebase process. However, due to the 10% sell slippage on Uniswap, this extra YAM supply will go straight to the protocol’s governance reserve.
As part of the announcement, the team revealed solutions to the issue, stating:
“Set rebase to 0; this will pause rebases to allow us to implement full fix[…] Reset YAM in YAM reserves to zero; this will eliminate the over-inflated YAM in the reserves.”
However, the first rebase already took place and the team is now pushing for a full quorum to implement the proposition which would require 160,000 YAM to be delegated. Farmers have until the next rebase to get at least 50,000 delegates. Failure to do so will mean that “no further governance actions will be possible.”
Yam, the Latest Darling for Yield Hunters
As reported by CryptoPotato YAM Finance took the crypto world by storm, shortly after launching on Tuesday, August 11. The new yield farming protocol came with promises of high returns and fairness in the liquidity mining ecosystem.
Although the developers called the protocol and experiment, yield farmers pumped on DeFi tokens to stake on the protocol and earn YAM. Following the launch, about two million of YAM’s elastic supply tokens were available for staking on eight pools on the platform.
The eight tokens available for sYAM taking include COMP, LEND, MKR, SNX, YFI, LINK, wBTC, and ETH/AMPL Uniswap v2. The YAM hype benefited DeFi tokens, as users who bought tokens of these protocols caused a surge in the price of these tokens.