Crypto Twitter has been captivated by a newly launched protocol called YAM that is structurally similar to Ampleforth – in terms of its regular rebasing – with the same “meme potential” as other popular DeFi tokens like YFI.
YAM – which is somewhat experimental – has gone viral on social media, with prominent industry figures like BitMEX founder Arthur Hayes announcing that they are farming the token.
This has caused its price to rocket to well over $100 – significantly above its intended price of $1.00. The total value locked (TVL) within the platform has also reached nearly $500 million.
Every 12-hours, the token will undergo a rebasing that adjusts the circulating supply to try to bring the token’s price down to parity with its intended $1.00 peg.
This is likely to bring about massive volatility for the crypto in the days and weeks ahead.
Hottest DeFi Trend Pulls in Hundreds of Millions as YAM Farming Takes Off
Yesterday, a new DeFi protocol named yam.finance was launched, with the YAM token being an experimental combination of YFI and AMPL.
A promising new crypto-token model combined with significant meme potential was a recipe for success.
Within the first 24-hour of launching, YAM has pulled in nearly $500 million in TVL across its multiple farming pools.
This has driven the YAM token’s price up towards $140 – significantly above where it is intended to be trading.
The crypto undergoes a rebase every 12 hours that adjusts its circulating supply to bring its price down towards $1.00.
As seen while looking towards Ampleforth – which undergoes one daily rebase – this leads to massive volatility that lures in traders.
This may be part of the reason why investors are flocking to this crypto while farmers flood into the various YAM pools.
YAM Sends Shockwaves Throughout Crypto Market
This protocol launch appears to have reignited investor’s interest in DeFi.
Shortly after its launch, the high yields and popularity of the COMP farming pool led the Compound governance token’s price to rocket over 50%.
This, in turn, led the entire DeFi sector to climb higher.
Alex Krüger, a crypto-focused economist, spoke about this development in a recent tweet:
“YAM = AMPL launched in a YFI fashion. It has $440M staked in less than 24 hours and has made the price of the best yielding coins surge. COMP for example is +50% since yesterday.”
The far-reaching impacts that YAM’s popularity has had on the entire crypto market suggest that decentralized finance is still an incredibly influential trend.
Featured image from Unsplash.