The DeFi bubble is well and truly upon is with significant levels of hype and demand being demonstrated on the yield farming Yam platform over the past 24-hours.
More than $400 million in DeFi tokens has now been deposited and staked on the platform, including $11.4 million in one transaction of Wrapped Ethereum (WETH).
Yam is a yield farming protocol that allows users to stake a variety of DeFi tokens while earning the YAM governance token in exchange.
The platform’s developers published a blog post on Monday detailing exactly how users can capitalise on the surge in popularity of DeFi tokens and projects.
It states: “Yam is an experimental protocol mashing up some of the most exciting innovations in programmable money and governance. Built by a team of DeFi natives.”
Initially, YAM will be distributed across eight staking pools including COMP, LEND, LINK, MKR, SNX, WETH, YFI and ETH/AMPL Uniswap v2 LP tokens.
I think yield farmers are still the majority crowd in $yam, they aren't necessarily trained by AMPL yet.
— VirtualBacon (@VirtualBacon1) August 12, 2020
However, it’s important to note that yield farming comes with a number of inherent risks, especially in Yam’s case as it developed in just 10 days.
The blog post also warns users that the project has not been the recipient of an official audit.
“This was a 10-day project from start to launch.” It continued. “We STRONGLY urge caution to anyone who chooses to engage with these contracts and think a proper professional audit would be highly advisable if this project gets any meaningful use.”
Every 12 hours the YAM protocol undergoes as rebase period, which attempts to bring the YAM token back to its $1 hedge while allocating more tokens to those staking.
250,000 YAM tokens will be distributed to stakers across the eight pools listed above in the first wave of distribution, while 3 million tokens will be distributed to the YAM/yCRV Uniswap v2 LP pools at 19:00 UTC on August 12.
For more news, guides and cryptocurrency analysis, click here.