The future of Yam Finance’s yield farming protocol is on the line as it awaits token Bitcoin Revolution deposits for the governance vote that could save the project.
With less than five hours to go, Yam is only a third of the way to the required 160,000 tokens.
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A code bug detected early today in one of Yam Finance’s smart contracts set DeFi back as it struggles to find a solution through its decentralized governance system.
The project published an update outlining the problems and calling on stakeholders to commit their tokens to saving the platform.
The flaw in the code produces more tokens than were intended through a system called „rebasing“ which was supposed to allocate ten percent of them to a treasury through a one-dollar stablecoin. This causes too many guarantees to enter the treasury, preventing future governance actions.
Waiting for governance guarantees
In order to fix the problem, two proposals were made to restart the base levels and essentially „reboot“ the system. Initially it was thought that 35,000 YAM tokens would be enough to achieve a governance vote. However, Compound Finance CEO Robert Leshner, who warned of the risks on launch day, informed the team that 160,000 tokens would be needed.
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The Save Yam blog post summarizing recent events added that if the governance cannot submit a proposal to correct errors before second base, no further governance actions will be possible due to the number of YAMs in the pool. He added a strong warning that;
„If this happens, YAM’s treasury will become ungovernable and these funds will be lost.“
At the time of writing, more than 56,000 votes have been delegated, but with less than five hours to go, the chances of reaching the goal seem slim.
Awaiting collateral for governance
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The delegate tokens must remain in Yam’s wallets until 9am UTC on Sunday, August 16, so that they can be counted, which presents another risk to yield farmers if the platform collapses.
DeFi expert Cooper Turley commented on the possibility of not reaching the required amount for the governance vote due to high gas tariffs.