First Successful V3 Rebase Ignored As Protocol Overhaul Planned By Yam

Yam stands as the very first Decentralized Finance (DeFi) clone protocol that was themed on food. In its move, the protocol had managed to successfully complete the first rebase of the network since its V3 relaunch.

A Couple Of Setbacks

Yam saw its V3 launch on the 18th of September, 2020, just after the Yam V2 failed in a spectacular fashion just a month prior. V2 suffered a bug in the unaudited code of the protocol, rendering governance impossible after only two days. This happened due to the token’s supply becoming 10 times more than the design was intended during the rebase

The original imitation of Yearn.finance had described itself as an experiment in fair governance, forming, and elasticity. Yam’s gimmick was maintaining a peg of 1 yUSD per token, doing so through adjusting, or “rebasing” its supply every 12 hours. Should Yam’s price stay within the range of $0.95 and $1.05 yUSD, the rebase will not occur.

First Successful Rebase For V3

The first rebase for Yam’s V3 occurred on the 21st of September, 2020. There, $571,000 in yUSD was added to the treasury, subsequently expanding the position of YAM token holders by a factor 2.49. This, in turn, had the effect of driving the price of YAM down, going from $20 to just $7.

Some statistics on the first $YAM rebase!

💰$571k in @iearnfinance yUSD added to the treasury
🌈 $5.71k contributed to public goods via @gitcoin
🍠 2.49x increase in YAM balanceshttps://t.co/RLoRxIVUQF

— Yam DAO (@YamFinance) September 21, 2020

Yam has stressed the fact that the protocol isn’t fully optimized, just yet, despite seeing its rebase occur.

Much Work Needs To Be Done

In its notes, Yam explained that Yam V3 had managed to retain a majority of parameters from V1, which allows for efficient audit and governance processes. However, it was made clear that improvements needed to be done in several fields: Liquidity incentivization, governance, as well as the rebasing process of the protocol itself. The idea is that rebasing in the future needs to be executed at more intervals. This is to reduce the market impact that purchases made by the Yam treasury have on the tokens.

It’s expected to see on-chain governance go live within the next few days. Alongside this, the developers of Yam are hoping to launch improvements with the Uniswap routing of Yam, as well as on-chain analytics and detailed documentation. These plans are stated to be for the near future.

As for further plans, Yam is hoping to establish a greater reward system for community contributors. This includes community moderators, core developers, as well as infrastructure contributors.