With YAM Financial’s token value almost at zero, the team behind the project has proposed a two-phase migration plan that could see an audited version.
Two-Step Migration Process for YAM
In a Medium blog post on Friday (August 14, 2020), the YAM Finance team announced plans for a planned migration to a new protocol called YAM 2.0. According to the team, the migration will be implemented if there is enough support from the community.
The migration planned follows from a failure of the YAM developers to resolve a bug found in the rebase contract. As a result, the project crashed, losing over 90% of its dollar value in under one hour.
As reported by CryptoPotato on Wednesday, developers of the YAM protocol revealed that there was a bug in the YAM rebasing mechanism. The bug minted an excess supply of YAM to the protocol’s governance reserve. With the protocol unable to reach a quorum, the attempted bug fix was unsuccessful.
However, the YAM Financial team has proposed a two-phase migration plan that would see the protocol move to an audited YAM 2.0 version, as against the unaudited first version. The first phase of the process will involve creating a migration contract to oversee a token burn resulting in the creation of YAMv2.
According to the blog post, no rebase will occur after the token burn but there will be a full audit of the project, something that is absent in the current iteration. After the audit, a second migration step will occur, resulting in the emergence of YAM v3.
Following the migration, the team has plans to reward YAM holders who tried to save the protocol when it faced its crisis. Despite the promising plan, the community will be the entity that will make the decision regarding the young project.
Stakeholders Urge Caution
While yield farming has seen massive participation in the last few weeks, some experts call for caution, as most of these projects are likely pump and dump schemes.
ShapeShift CEO Erik Voorhees earlier tweeted, stating that YAM resembled a scam project, adding that such projects did not offer tangible upsides for the decentralized finance (DeFi) space.
Also, Ethereum co-founder Vitalik Buterin distanced himself from the ongoing yield farming hype. In a Twitter thread published on Friday, Buterin advised crypto investors to do their due diligence before putting up any equity in any project.
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