Was Yam a scam, that is what someone has asked me to look into here. The first thing you see when you go to the site is two pop up warnings, warning you of the risks of using this platform! Its an ominous sign of what was to follow, like the developers knew of risks and wanted to have a way to claim they warned everyone in advance, in hindsight I find it fishy, it’s not that common to see such warnings on other new projects in the space despite all the known risks.
Clearly the Yam token crash has affected many and the ecosystem and is a Stark warning to the whole Defi space to take notice that all this shitty code being pumped out is going to end in tears. Vitalik has issued a poignant warning to those speculating in the space:
Seriously, the sheer volume of coins that needs to be printed nonstop to pay liquidity providers in these 50-100%/year yield farming regimes makes major national central banks look like they’re all run by Ron Paul.— vitalik.eth (@VitalikButerin) August 31, 2020
With a snarky followup by Sushi lover:
print this, and look at it every morning, change your vision, change your life sir. pic.twitter.com/HrZYJJfAUy— #Sushi Master Chef😂 (@hmazawi) September 1, 2020
So was this a code bug or was it something more engineered? Taking a look at the link profile:
Looking at the Interconnect link profile:
We can see the interconnected link profile :
“According to the blog, founders Brock Elmore, Trent Elmore, Clinton Bembry, Dan Elitzer and Will Price conducted no pre-mine, garnered no VC interest and took no founders’ share. The team could not be reached by press time.”
This was an industry project with industry grade insider connections but was so slapdash and poorly designed ‘product’ that this eventuality was destined to happen to the project despite bugs or no bugs. The re-base procedure would have resulted in One USD value regardless at some point. A careless attitude seems prevalent in this project and of the founders, if it was going to loose 99% of the value regardless they should never have opened the site! Wait for the relaunch coming to a website near you.
The YAMv2 interim governance period has ended, and all future proposals will need to be ratified on-chain following the launch of YAMv3.— Yam Finance (@YamFinance) September 1, 2020
For information regarding the YAMv3 launch, migration, rewards, incentives, and audit, please see below: https://t.co/wTX1zi1X4w