The Yam protocol was perhaps the most talked-about DeFi project over the last few days. The experimental protocol saw massive growth in less than 24 hours time until a rebase bug was discovered and the protocol saw its market cap crash down to zero within minutes on August 13.
However, according to a recent report from crypto analytics firm Messari, it looks like Yam supporters have not given up hope as the project has gained $200 million in total value locked, despite the fatal crash.
The report adds that to date Yam remains the 7th largest DeFi project in terms of total value locked in it. This is calculated by multiplying the total number of tokens held by a protocol by their value in USD.
Messari states that Yam’s valuation has more than doubled from $200 million to $400 million since the protocol collapsed, while trading activity along with the price is up in the last 24 hours. The report said:
“Clearly, there are some who believe there is value in using funds to farm YAMs.”
The analysis firm referred to the migration plans shared by Yam developers that will allow existing Yam holders to transfer their assets on a new smart contract, adding that this might be the reason why investors continue to have faith in the project.
“Whether or not YAM can actually become a useful financial primitive remains to be seen. One thing is for certain: these kinds of token experiments are not going away.”
Investors have faith in Yam 2.0
As previously reported by The Daily Chain, Yam developers announced plans for Yam 2.0 and 3.0 on August 14.
Per the announcement, blockchain security company Peckshield is conducting an audit of the migration contract, which should be completed within two days. Once finished, the YAM migration will happen in stages.
Yam 2.0 will have no rebase and the function named “balanceofUnderlying” on the current YAM token contract will be leveraged to ascertain the number of YAMv2 tokens that will be minted.
After the audit of Yam 2.0, a second migration step will occur, resulting in the emergence of YAM 3.0. Holders of YAM 2.0 will be able to migrate to the updated Yam 3.0 token via an additional contract.
Furthermore, Yam will also reward users who support the project during this tough time.
On this matter, Messari concludes:
“Money is a great motivator and people are making a lot of it. One can only hope we’re not increasing the risk of a DAO-like hack that brings the system to its knees.”