DeFi token YAM has collapsed just hours after it recorded a massive boom because of a bug that locks tokens in treasury permanently.
When the DeFi token YAM made the headlines days ago, it rode on the back of the DeFi frenzy as it was able to lock down about $400 million in a day. The developers confirmed that they got $90 million deposited into the protocol in the first few hours.
As it stands now, the DeFi Token YAM has now crumbled as a new bug that was uncovered on August 12 showed that it had lost total control of the governance on its chain. If this bug persists, the developers could have their hands full due to the massive creation of the DeFi token YAM.
Crypto panic caused as members were quickly asked to exit the platform
According to the developers, the bugs‘ presence means the protocol would lack governance actions, which means funds might remain locked in the treasury. The developers had no option than to tell the users on the platform to exit it on August 13.
Even though it looked like the big was discovered on time, that is not to be as $750,000 worth of the DeFi token YAM has already been locked in the treasury permanently. Panic was the order of the day as the developers asked users to exit the platform in a short time frame.
The total worth of the DeFi token already locked is worth $585 million
Experts have come forward to fault the project and its developers after claiming that the project was launched without any security protocol as the DeFi token YAM has no value. The project’s promise to investors was enticing as no investor would want to pass up a 1,000% yield annually.
Richard Ma, the CEO of Quantstamp, said that the developers used reverse psychology to trap investors using the offer of an unaudited protocol. $585 million DeFi token YAM was said to have already been locked on August 13 at 4:30 UTC.