Read on Twitter
ok, buckle up.
Let's talk about what happened with $YAM and about taking responsibility. Both on the protocol developer side and the user side.
Let's talk about what happened with $YAM and about taking responsibility. Both on the protocol developer side and the user side.
As a quick refresh on what happened, there was a bug in the $YAM rebase contract. This created more YAM than was intended.
Because of this, it made it impossible to reach the minimum quorum for proposals to pass which killed governance.
ok, moving on.
Because of this, it made it impossible to reach the minimum quorum for proposals to pass which killed governance.
ok, moving on.
We’ll start with the user side.
Here's a non-inclusive list of photos that demonstrate how much risk there was in this new protocol
Here's a non-inclusive list of photos that demonstrate how much risk there was in this new protocol
In my opinion, people in crypto throw caution out the window because of how wildly successful past projects have become (e.g. $YFI).
People saw $YAM as an opportunity to catch a new yield farming wave from the beginning.
Most likely pattern matching from missing out on $YFI.
Most likely pattern matching from missing out on $YFI.
$YAM led with saying there were no audits and they only spent 7 days on the protocol.
This should without a doubt have set off red flags for users depositing their hard earned money into a new, untested protocol.
This should without a doubt have set off red flags for users depositing their hard earned money into a new, untested protocol.
However, you get interactions like this that stoke the fire.
I'm not saying that these interactions are wrong, just that YOU as the investor need to reflect on what your risk tolerance is.
This is where user responsibility comes into play.
I'm not saying that these interactions are wrong, just that YOU as the investor need to reflect on what your risk tolerance is.
This is where user responsibility comes into play.
These newly developed DeFi tools that people are making are so insanely cool, and they have INCREDIBLE amounts of power.
People need to understand and take responsibility for their actions and what they choose to do with their money.
People need to understand and take responsibility for their actions and what they choose to do with their money.
In my opinion, people can't get upset about losing money in untested protocols when warnings and disclaimers are scattered throughout.
Users of these protocols MUST take responsibility for how they choose to use their money.
No amount of developer oversight can change this.
Users of these protocols MUST take responsibility for how they choose to use their money.
No amount of developer oversight can change this.
On the developer side, what's happening is fascinating.
People are launching protocols without any VC backing, with the goal of decentralizing from the beginning.
Because of the lack of funding, they cannot afford audits prior to launching. https://twitter.com/econoar/status/1293312158155997185
People are launching protocols without any VC backing, with the goal of decentralizing from the beginning.
Because of the lack of funding, they cannot afford audits prior to launching. https://twitter.com/econoar/status/1293312158155997185
One of the major selling points behind crypto is "permissionless innovation".
By taking VC money, you've already failed at this. You literally need to get their permission to build something.
By taking VC money, you've already failed at this. You literally need to get their permission to build something.
Investor updates, "you should do this" conversations, clocks ticking warnings.
No thanks!
No thanks!
The @yamfinance team outright said this was an experiment.
"YAM: An Experiment in Fair Farming, Governance, and Elasticity"
"YAM: An Experiment in Fair Farming, Governance, and Elasticity"
People need to understand what an experiment means. It might work, it might not.
Without public experiments like $YAM, would we learn and progress at the rate necessary to truly create change?
Unclear.
Without public experiments like $YAM, would we learn and progress at the rate necessary to truly create change?
Unclear.
@LefterisJP has written a great post on what could have been done differently and what problems he saw in the whole $YAM experiment
https://blog.rotki.com/2020/08/13/sustainable-defi/
https://blog.rotki.com/2020/08/13/sustainable-defi/
Through this iterative boom and bust cycle, I believe developers truly learn a ton along the way.
Maybe it's irresponsible of me, but I'd take a massive experiment over an incremental change any day of the week.
Maybe it's irresponsible of me, but I'd take a massive experiment over an incremental change any day of the week.
We need to understand that these experiments are not final versions. They are stepping stones towards a rock solid future.
The greatest thing about this space is that people can stand on the shoulders of giants and learn together (in public).
The greatest thing about this space is that people can stand on the shoulders of giants and learn together (in public).
We should take a second and zoom out.
The more exposure people (users and developers) have to the inner workings of an experiment like this, the stronger we'll be at the end.
The more exposure people (users and developers) have to the inner workings of an experiment like this, the stronger we'll be at the end.
Have we gone off the DeFi deep-end?
Definitely not. Please consider this as a learning experience and take this knowledge with you before participating the the next experiment.
Definitely not. Please consider this as a learning experience and take this knowledge with you before participating the the next experiment.
