Yam Finance: A New DeFi Protocol Attracts $200 Million in 6 Hours
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Yam Finance: A New DeFi Protocol Attracts $200 Million in 6 Hours
According to the latest data, six hours after launch, Yam Finance's total value locked has nearly reached $200 million.
Navigating Web3 tides with focused insightsAnother DeFi protocol for liquidity mining has gone viral!
At 3 a.m. on August 12, the DeFi project Yam Finance launched its liquidity mining program. According to TheBlock, within less than an hour after Yam Finance began distribution, liquidity miners had deposited tokens worth $76 million into its staking pools.
Latest data shows that just six hours after launch, Yam Finance's total value locked (TVL) approached $200 million.
On Uniwasp, its price has also been driven higher repeatedly and has now reached $113. Tomorrow morning, Yam Finance will begin its second round of mining!
What is YAM?
YAM is a community-driven experimental protocol that draws inspiration from Ampleforth’s elastic supply mechanism with certain innovations. It features:
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An elastic supply mechanism aimed at achieving long-term price stability
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A governable treasury designed to further support stability
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Fully evolved on-chain governance enabling decentralized governance from day one
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A fair distribution mechanism incentivizing key community members to actively participate in governance
Overall, YAM is an elastic supply currency that expands and contracts its supply based on market conditions, aiming to keep each YAM token valued at $1.
This stabilization mechanism adds a crucial enhancement over existing elastic supply models (like Ampleforth): during each supply expansion, part of the newly minted tokens are used to purchase yCRV (a high-yield, USD-denominated stablecoin), which is then added to the Yam treasury and controlled via community governance.
According to official statements, at launch, the Yam token holds zero value, and after deployment, its value and future development depend entirely on Yam token holders.
How to Obtain YAM?
Like YFI, YAM adopts a "decentralized" distribution model characterized by “no pre-mine, no sales, no founder allocations, no VC interests, equal opportunity for all.”
Currently, the total supply of YAM is 5 million tokens. Due to the token's nature, the actual supply may vary over time depending on future rebases.
The initial distribution uses liquidity staking of major DeFi tokens through mining, starting at 3 a.m. Beijing time on August 12, lasting seven days.
Currently, YAM tokens are evenly distributed across eight YAM staking pools: COMP, LEND, LINK, MKR, SNX, WETH, YFI, and ETH/AMPL Uniswap v2 LP.
Each pool contains 250,000 YAM tokens, totaling 2 million. Investors can stake corresponding mainstream DeFi tokens to earn YAM.
A co-founder of Continue Capital mentioned on Weibo today: “$YAM emerged early this morning. Since YAM is equally distributed across eight pools, the optimal strategy is to target pools with smaller capital sizes. Currently, the COMP/AMPL/LEND/SNX pools have the least funds, meaning they offer the highest yields. Therefore, borrowing ETH to mint these four tokens and participating in mining could be an excellent early strategy.”
It is reported that the second mining phase begins at 3 a.m. Beijing time on August 13.
The second distribution involves only one staking pool: (YAM / yCRV Uniswap v2 LP), with a total of 3 million YAM tokens. In the first week, 1.5 million will be distributed, halving every subsequent week.
YAM's supply rebasing is set to occur every 12 hours. The initial rebase is scheduled approximately 12 hours after the start of the second distribution (YAM Uniswap liquidity).
Risk Warning
The official team notes that this project went from concept to launch in just 10 days and has not undergone rigorous formal code audits. This is purely an experiment—investors should proceed with caution.
Official Resources
Contract Address:
0x0e2298E3B3390e3b945a5456fBf59eCc3f55DA16
GitHub:
https://github.com/yam-finance/yam-protocol
Twitter: @YamFinance
Website: yam.finance
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