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YAM
About YAM
YAM, a project in the DeFi cryptocurrency space, began as an algorithmic stablecoin, using a rebasing mechanism to peg its value to the US dollar and counteract market volatility. However, in a significant shift, community governance disabled this feature on December 29, 2020, altering its function within the DeFi sector. Initially, YAM sought price stability, closely shadowing the US dollar, but the disabling of its rebasing feature has ushered in a new phase. Instead of primarily regulating price stability, YAM's role has evolved to include key DeFi operations such as yield farming, liquidity provision, and involvement in governance protocols. For holders, YAM now presents diverse utilities, from speculative asset to governance token, empowering them to propose, vote, and directly influence the project’s future developments.
YAM started as a cryptocurrency project within the decentralised finance (DeFi) space, with an initial approach as an algorithmic stablecoin. It introduced a rebasing mechanism intended to adjust its supply to maintain a value pegged to the US dollar. However, as of 29th December 2020, this rebasing feature was disabled by community governance, marking a shift in the project's operational dynamics. While it initially aimed for price stability via its peg to the US dollar, the changes have repositioned YAM in the DeFi landscape.
Originally, YAM’s rebasing mechanism was employed to mitigate price volatility, a common issue in the cryptocurrency world. With its rebase feature now archived, YAM's current utility within its ecosystem may have shifted towards more traditional DeFi roles, including yield farming, liquidity providing, or functioning within governance protocols. Holders might use YAM for various purposes, from speculative investment to participating in governance by proposing and voting on changes in the protocol, thus actively shaping the project’s trajectory.