After 2 days of frenzy in mid-August almost put and end to Yam Finance, the popular DeFi platform now seems to be recovering as the plan to migrate the protocol to audited contracts is being executed without issues. Today, the project announced that votes on several issues were successfully held prior to the upcoming version 3 launch.
As previously reported by The Chain Bulletin, after discovering a bug in its unaudited smart contracts, Yam Finance put the breaks to an outstanding launch. Close to $600 million in various crypto assets were locked on the platform in less than 24 hours and the price of YAM, the project’s governance token, was going up and up and nothing seemed like it could stop this particular DeFi bull run. That is, until a simple mistake in one line of code was identified. And that put an end to it. At least, it looked like the end of the story.
Unexpectedly, founders of the project quickly organized to present a migration plan. Despite the demise of the first version of the protocol, there still seemed to be a lot of interest in the project. A two-phase plan was presented and put into action. Yam migrated to version two on August 22, which was meant as an intermediary step towards version 3.
Since the deployment of version 2, the community surrounding the project discussed and voted and issues concerning the upcoming version 3 of the protocol. At the last minute of August 31, the version 2 governance period ended, marking all passed proposals up to that point as necessary implementations in v3.
As voted by YAMv2 token holders, YAMv3 will have the following launch parameters:
- Reserve asset will be yUSD.
- A voting period will be 2 days.
- Initial supply of YAMv3 will be 5 million.
Next in the roadmap of Yam Finance is the audit of the version 3 smart contracts, which will be conducted by Peckshield Inc. (the same company that audited version 2). The audit is expected to be completed in a few weeks, setting a possible YAMv3 launch date for mid-to-late September.
In response to the organized execution of the migration plan, YAM has made a phenomenal recovery. The governance token was headed towards zero after the bug was discovered in the first version of the platform, however, it is now trading around the $50 mark. Primarily, the digital asset is being exchanged on Uniswap and Gate.io, with more than $20 million in volume on both platforms over the last 24 hours.
The migration to version 3 of Yam Finance will see all YAMv2 token holders receive YAMv3 tokens in a 1:1 ratio, with “50% immediately redeemable and 50% continuously vested over 30 days”. At its peak, YAM reached close to $170. And although Yam Finance was riding the hype wave at that time, one can’t help but wonder what new highs the asset will reach when version 3 is deployed.