YAM was an amazing experiment that has used nearly everything ETH has built up over the last 3 years to create something absolutely amazing.
It’s unfortunate that it fell apart, but it gives us a chance to try again!
This is a thread to discuss possible sequels, improvements, flaws, and overall lessons learned from YAM.
I will start off by saying that using existing DeFi tokens to farm the initial distribution was brilliant. It was an amazing use to get as many people as involved with little risk as possible. I think this is something we should definitely replicate, maybe change the balancing of the pools differently. (more for heavier pools like WETH, YFI, etc.)
Another neat lesson was the treasury, having a treasury under control is a great idea for keeping it sustainable, I think we should keep this!
Any other comments, plans or sightings? This is really just the start!
Another thought, the governance parameters (quorum, etc.) should be carefully decided before the next launch, especially since YAM had conflict of interest between staking for farming gains, and delegating for voting. YFI conflated voting with earning gains, which is a great design IMO.
I think we should improve the distribution. Capping the deposits for a few hours could work to help with a whale distribution. Another way could be to distribute but with a different kind of logic, like starting with low APR and starting minting more with the hours to allow that a lot of people participate when the APR is at its peak. Also I really liked that they use different asset pools with different APRs that make the farmers work to optimize their farming, I like how that mechanic put farmers to farm in an intelligent manner.
My biggest concern is that if we dont get that a ¨fair¨ community the projects governance wont have as much ¨authority¨ to regulate it. If beign a first mover is the only advantage that we are going to gave to people we are going to have a community that will be running like crazy behind stupid returns instead of think what they are doing.
Agree 100%.
To finish :elastic supply tokens seems to be starting to gain more and more traction in the market, will see if they can improve the system. You have any thoughts on that?
BASED capped the deposits, I’m not sure how effective it was but maybe high gas prices are helpful in this case? lol
Low APR at the start sounds neat, helps people get in early but maintain their rewards as it expands. Maybe it could even be a function of the amount staked! Interesting concept!
I didn’t get a chance to study the distribution, I’m not entirely sure how well it was split up. Quorum was 4% correct, that seemed rather difficult to reach until the end.
I think elastic tokens are great because they keep ownership non-dilutive, while keeping the price at its target. I think there is value in having a community governed stable coin like YAM. If it survived, I would’ve loved to see it as collateral for say Maker, or even a Curve Pool for it! I’m truly hopeful something succeeding with this would work well.
The issue with AMPL is that those who buy above the peg are essentially gambling they wont get screwed over by the rebase.
Having farming allows people to accumulate slowly, and play with money thats on the house, rather than attempt to buy into something risky.
Yes, elastic supply change the attention from price to market cap, what you are actually buying is a share of that market cap and you know that your buying power will remain stable. Is a pretty dope concept but I doubt that the speculative capital that is flowing in really get this. The rebases can really hurt people if the buy way above the peg, thats going to fuck a few people. I still dont get whats the tech issue with doing rebases more often to avoid a big move from the peg. Also, im not sure how this affect when you are working with volatility, like in a trading scheme, this non fixed supply is something that I still dont really get how to trade.
Lets see how this goes. I think that the community that they manage to attract was incredible. With just little to none pre organization they manage to coordinate enough capital to create an impact project. This makes me think that the coordination cost of a project in blockchain are 100X lower than the coordination cost that you have in the ¨traditional¨world. We would be able to create way bigger companies than the ones that we are seeing right now.
I like this concept : Firms exist to economize on the cost of coordinating economic activity.
What could the treasury be used for by the community to further increase value? That’s what I didn’t get. Ok, so there’s a pool of money. Now what? There’s no useful underlying product yet.
But if the treasury had a useful product…like yearn Vaults, that makes total sense to me.
