Why is yamv2 currency temporarily suspended (Why has yam coin been falling all along)?

Why is yamv2 currency temporarily suspended? According to Yam Finance, what is the difference between yamv1 and yamv2 tokens? First of all, the Yam project team has released a detailed introduction to their YAM (yearn.finance) on their official website, as well as the official team’s views on how to solve this issue.

YAM (yam) is a decentralized autonomous organization (DAO) that utilizes blockchain technology for community governance and provides funding support for the protocol. It is one of the DeFi products based on the ERC-20 version of the Ethereum network. Users of the platform can earn rewards or extract a certain percentage of tokens from the liquidity pool.

In order for these functions to work, YAM v1.5.0 will be launched in stages. Currently, developers are testing contract codes, conducting audits, and finally deploying contract source codes. However, due to bugs and instability in the current YAM contract code, it is recommended to fix them before deployment. Additionally, it is important to note that if there is not enough time and money to run the contract, please do not attempt to create a smart contract.

Furthermore, according to the official description, YAM tokens are fully controlled by the YAM Foundation, and anyone can mint a token. This token will have a value of $1 million for buyback and destruction until all tokens are burned and reallocated to users. Because the token supply is limited, issuance will immediately begin unlocking, but this can cause a significant price drop.

YAM v2.0.0 will be launched next week. YAM v1.3 will officially go live on August 18th, when YAM/USDT, YAM v1/ETH, YAM v2/ETH, V3/BTC, YIPutch, and YAMBcrypto will be available, which are Yam, Yamv0, yCRV, yDAI, and yUSD. For specific rules, please refer to the original article link: https://app.yam.finance/dex-defiyam/traders-yam/yAMDAppStore update: https://app.yamcoin.com/

Why has yam coin been falling?

According to a post from the FHBT18 community (ID: FHBT18) written by author Pei Pei and authorized by Odaily Planet Daily, Yam is one of the hottest DeFi projects this year. Its token YFI hit a high of $20,000 when it fell from the peak of $6 on June 15th, but quickly rose above $18,000. Both YFI and YAM have experienced significant declines in the past month, with the highest increase being 3.44% and the second being 1.56%. This means that it is now approaching zero. However, according to DeBank’s statistics, the project currently has a TVL of about $1 billion, with Sushiswap ranking first in terms of lock-up value, exceeding $10 million in total assets. The circulating supply of the yam token, YAMV2, has also reached a two-year high. So why has YFI been booming lately?

1. The source and reasons for the market’s demand for Yam: Since the price of YAM plummeted after its launch, it triggered a large number of market sell-offs. From the issuance of YAM to the time of writing this article, YAM has risen to 19.7 USDT, slightly bouncing back from its low price in early January. (Image source: DeBank)

In the past few months, people’s interest in Yam has declined. Because YAM tokens do not have practical application scenarios, their value does not exist in the secondary market. As a decentralized financial platform, Yam is developed based on Ethereum. It uses smart contracts to realize on-chain trading functions, supports decentralized lending business, provides liquidity mining and collateral services, and has various governance models and incentive mechanisms. In addition, Yam adopts the AMM model for token distribution, allowing participants to obtain profits at any time.