YAM Developers Revealed A Bug In The Rebase Mechanism
Shortly after it was launched, the YAM developers revealed that there is a bug in the rebasing mechanism and now farmers have until the next rebase to delegate voting power for the team to implement the fix as we are about to find out more in the upcoming altcoin news.
YAM finance is the latest yield farming sensation with a huge bug in its rebase mechanism. The YAM developers assured the users that the funds are unaffected. Rebasing refers to the process of setting up a new base level for the price index and as an elastic supply token, this process could trigger push and pull pressure on the token price to the $1 with 10% used to buy yCRV which is the high-yield USD stablecoin.
We have found a bug in the rebasing contract, please read below.
All funds in staking contract are safe, as this is an unrelated part of the protocol.
User YAM balances are also unaffected.
— Yam Finance (@YamFinance) August 12, 2020
According to the tweet, the bug will cause inflation in the YAM token number after the first rebase process. Due to the 10% sell slippage on Uniswap, the extra supply will go directly to the governance reserve of the project. As a part of the announcement, the team revealed more solutions to the issue:
“Set rebase to 0; this will pause rebases to allow us to implement full fix[…] Reset YAM in YAM reserves to zero; this will eliminate the over-inflated YAM in the reserves.”
The first rebase already happened and the team is now pushing for a full quorum to launch the proposition that will require 160,000 YAM to be delegated. The farmers have until the next rebase to acquire 50,000 delegates and if they fail, there will be no further governance actions possible. YAM Finance took the world by storm recently after it was launched on August 11th. The new Yield farming protocol came with the promise of high returns and fairness in the mining ecosystem.
The concern is the same as before: the yCRV accumulated in the reserves during rebase is at risk of being stuck if governance cannot pass proposals. https://t.co/KJxRIxk0ZP
— Yam Finance (@YamFinance) August 13, 2020
The farmers are pumping on the Defi tokens and they are urged to stake on the protocol and earn more YAM. After the launch, more than two million of YAM’s elastic supply token was available for staking on eight pools. These tokens available on the pools are COMP, LEND, MKR, LINK, wBTC, SNX, and YFI. The YAM hype benefited the tokens as users to purchased these tokens caused a huge surge in price.