While Bitcoin has retraced since its highs, Ethereum’s decentralized finance ecosystem is still in a clear phase of growth.<\/p>\n
Case in point: a DeFi protocol launched yesterday has already garnered hundreds of millions of dollars worth of value. This comes in spite of the fact that the protocol’s code is unaudited by professional auditors.<\/p>\n
This, to many, shows how much interest there is in DeFi and Ethereum-based assets. This should act as a boon for the cryptocurrency and its respective blockchain in the long run.<\/p>\n
Yesterday, a number of developers launched what is known as “Yam,” a DeFi protocol whose native governance token is YAM.<\/p>\n
The protocol is an experimental one that is attempting to mesh the DeFi concepts of \u201cyield farming,\u201d governance, and price elasticity. The following is an excerpt from the blog post announcing the project:<\/p>\n
\u201cYam is an experimental protocol mashing up some of the most exciting innovations in programmable money and governance. Built by a team of DeFi natives, it features: an elastic supply to seek eventual price stability, a governable treasury to further support stability, fully on-chain governance to enable decentralized control and evolution from Day 1, and a fair distribution mechanism that incentivizes key community members to actively take the reins of governance.\u201d<\/p><\/blockquote>\n
While the team describes the Ethereum-based platform as “experimental” and “unaudited,” it has garnered much interest in the DeFi community.<\/a><\/p>\n
According to DeFi analyst Camila Russo<\/a>, there is now $400 million worth of cryptocurrency locked in the protocol. This is more assets locked than “Balancer, Curve, and Yearn,” as Russo explained.<\/p>\n
She added that this large migration of funds is being triggered by users seeking to maximize their profits: “TVL in these platforms is sliding as farmers are apparently cycling their crypto into the highest-yielding crops.”<\/p>\n
\n\ud83e\udd2f There's now +$400M in https:\/\/t.co\/D9BseHlOYI<\/a>, a DeFi protocol that didn't exist before yesterday.<\/p>\n
That's more than assets in Balancer, Curve, and Yearn – TVL in these platforms is sliding as farmers are apparently cycling their crypto into the highest-yielding crops.<\/p>\n
— Camila Russo (@CamiRusso) August 12, 2020<\/a><\/p><\/blockquote>\n