A New Chapter For Yam
Yam Finance have voted to remove the rebase mechanism with the onchain vote passing and now queued for twelve hours.
The decision follows weeks of community discussion on both Discord and the forum, and a snapshot vote that allowed members to signal their initial support.
The rebase mechanism was used to keep the price of Yam relatively stable, modifying the supply to maintain a one dollar peg. It also raised funds for the treasury, with 5% of every mint being sold for ETH via Sushiswap.
What’s next for Yam?
You might be wondering what Yam is good for if it is no longer going to be stable.
The fact is that the Yam Finance community has come a long way since their initial vision, putting out a growing range of products.
I recently wrote about Umbrella, their upcoming insurance protocol, needed now more than ever in light of yesterday’s Cover Protocol exploit.
The community also just launched Degenerative Finance, a collaboration with UMA.
This allows DeFi users to trade Ethereum gas futures, which opens up a world of use-cases for DeFi users, miners and farmers. Read the full piece here.
Alongside these products Yam is actively managing its community treasury, the Yam Investment Arm.
These products all generate revenue streams which will most likely be directed towards Yam holders.
Part of the motivation for the removal of the rebase is to incentivise governance participants who hold Yam. Currently there is no economic incentive for holding the token. With the removal of the rebase the community are hoping to build a positive feedback loop between Yam products, the Yam token and governance.
Conclusion
Yam Finance have are a highly engaged community with high-quality contributions and discussion. They are also incredibly diverse globally, with a particularly engaged Chinese community.
I’m looking forward to seeing how the community continues to develop as well as how the product range continues to expand. While there are no guarantees in this space, the removal of the rebase may open the door to a wave of new community members looking at Yam as an investment.
Decentralise is sponsored by PieDAO. Discussions about a Degen PieVault have started again, and I’d love to see Yam included. PieVaults allow native staking, automatically compounding yield and maintaining a fixed balance between the assets.
Join the Yam community.
Join the Degen PieVault conversation.