YAM crashed from $167 to $0.6 in minutes, with over $750k worth of Curve tokens likely lost
YAM token, a DeFi token launched on Tuesday, has crashed by more than 99% as of writing after a security flaw was uncovered.
After hitting a high of $167 on Wednesday, August 12, YAM crashed to near $0, with its market value melting away within minutes on Thursday, August 13.
According to a tweet from the YAM protocol creator Brock Elmore, the project has “failed.”
“I’m sorry everyone. I’ve failed. Thank you for the insane support today. I’m sick with grief.”
Ungovernable
YAM’s demise started earlier today after it was discovered that its rebase function had a flaw that essentially means the protocol has no control over its on-chain governance.
With no fix, the token’s price on the market dropped out of the sky, the crash sending the market capitalization from $475 million to $0.62 within minutes.
In a Medium post today, the project’s team noted that the bug in the protocol’s rebasing function resulted in the generation of excess yCRV tokens to the YAM Reserves contract.
At one point, the flaw saw over $500,000 worth of the token added to the treasury with the subsequent failure to get a “bug-fix proposal” meaning that YAM’s treasury was now before the second rebase, no further governance actions would be “ungovernable.”
The result is that almost $750,000 worth of Curve tokens locked in the project’s treasury may end up lost.
Investors advised to exit
The Yam.Finance team accelerated the project’s “death” via a tweet advising investors to exit.
“We are urgently investigating a potential flaw…We strongly advise exiting the Uniswap YAM/yCRV pool prior to rebase at 8 am UTC (35 mins).”
Interest in Yam.Finance hit frenzy levels after its launch, going viral as the Total Value Locked in the protocol surpassed $500 million.