Decentralized finance (DeFi) protocol Yam Finance is relaunching on September 18.
Yam Finance V2, a fork of Compound (COMP) featuring a native token with an elastic supply, burst onto the DeFi scene last month โ garnering more than half a billion in assets from yield farmers within 24 hours of launching.
However, the unaudited V2 of Yam Finance came to a dramatic conclusion when a catastrophic bug caused excessive reserves to be minted which rendered it impossible for governance to be executed.
The relaunch follows a period of interim governance during which community consensus was found regarding โall key issues for V3โs launchโ, with the community voting to change Yamโs reserve asset to yUSD, extend the voting period to two days, and adjust the thresholds for proposals and quorum.
Most importantly for the confidence of potential investors, an audit was completed by blockchain security firm PeckShield.
The audit found โseveral issues related to either security or performanceโ that could be further improved in Yamโs smart contracts โ including 17 โbasic coding bugs,โ 12 issues found during PeckShieldโs โadvanced DeFi scrutinyโ of โbusiness logicsโ and โsystem operations,โ and six additional recommendations.
PeckShield describes four of the issues as โinformational,โ while six were considered to be low-risk, four were medium-risk, and one was classified as high-risk. No issues were found to be of โcriticalโ severity, and all identified issues have since been โpromptly confirmed and fixed.โ PeckShield concluded:
โYAM presents an interesting and novel experiment of on-chain community-based governance and elastic supply cryptocurrency, and we are very impressed by the overall design and implementation.โ
However, the firm emphasized that โsmart contracts as a whole are still in an early, but exciting stage of development,โ echoing the cautionary warnings of Ethereum (ETH) co-creator Vitalik Buterin regarding โsmart contract risk.โ
The audit was paid for using funds from the projectโs Gitcoin grant, with all remaining funds set to be used to sponsor a bug bounty.
Liquidity incentives will go live for the YAM/yUSD pairing on September 19, with the first rebase set to occur two days later. Yam V2 tokens are to be manually migrated to V3 at a 1:1 ratio, with 50% immediately redeemable and the remaining half to be continuously vested over 30 days.
