Yama Finance — An Introduction

We’re so early. There's so much to be built. DeFi is still in its infancy, with many crucial infrastructure pieces missing. Hence we’re so excited to announce Yama Finance — the next step towards an omnichain future.

TLDR: Yama Finance is a novel omnichain decentralized stablecoin built for maximum capital efficiency, speed, and security. Launching on Fuel, Eclipse, Arbitrum, and many other chains.

Current State of Things

Current stablecoins are primitive, slow to adapt to changes, and built for days past. Most are mono-chain, at most cross-chain — subject to slippage when transferred cross-chain. This limits sizing; one has to send multiple transactions or OTC for big amounts, meaning token bridge pools are unwieldy limitations.

Stablecoins should be fundamentally built omnichain. The dominant stablecoin of the future will be moved across chains fluidly and swiftly—chain agnostic. There have already been glimpses of this with USDC’s plans of going omnichain and other efforts to aggregate liquidity for bridged tokens.

We’ve already seen the importance of decentralized stables, but most current teams are slow to adapt to market feedback and are building for the past. As the UST crash has revealed, stablecoins that are not collateralized by external assets have inherent risks that greatly limit trust. However, existing collateralized stablecoins still suffer from significant issues with capital efficiency, often resulting in a lack of usage and the majority becoming USDC wrappers.

Yama aims to solve this by allowing a variety of collateral, including yield-bearing assets. This will make Yama the decentralized clearing house for liquidity and de facto omnichain stablecoin.

What Does This Mean For You?

Yama Settlement Standard (YAMA) is an over-collateralized stablecoin that unifies liquidity across many protocols and chains. In short, you’ll be able to bridge YAMA with zero slippage and almost instantly at any size across any of our supported chains. This enables an omnichain treasure trove of possibilities for both degens and builders. Chain abstraction, moving money cross-chain at scale with smart contracts, and much more are all things yet to be explored in depth. All are possible derivatives that utilize Yama’s critical omnichain liquidity layer.

There’s so much yet to be built, so many competing teams building out 0 to 0.5 progression solutions; Yama is the 0 to 1 jump for the omnichain future. Take a peek just a few months back — ecosystems like Aptos and others launched without native stablecoins for a significant time period. Why? Well, newly launched chains are always prone to price volatility for even the most adopted tokens; not enough centralized stables bridged over often means mispriced assets. Hence, mono-chain CDPs either wait for price action to settle on-chain and enough liquidity to sustain that calm or go live with absurd collateralization ratios (CR), damaging capital efficiency. Why use a CDP with CR at 500% for USDC/USDT? It’s frankly absurd.

Yama fixes this. Being omnichain, YAMA can be minted on an established chain with capital-efficient CRs and bridged almost instantaneously to new chains. This not only allows a modular stablecoin (YAMA) to be on new chains as soon as they launch but also bypasses the lengthy ~week wait times often found with official bridges off chains. No need to wait weeks to bridge back to Ethereum. Just mint YAMA and bridge it back as quickly as 1 - 2 - 3.

Yama is secured by the Hyperlane interchain messaging protocol, which utilizes PoS consensus in addition to our own sovereign consensus. Hyperlane uses 1:1 connections that are more scalable than Axelar and is more decentralized than solutions like LayerZero and Wormhole. To note, we’re a collateralized stablecoin, always backed at least 100%. As for all the other technical details, we’ll expand on those in future posts.

Summary

For now, all you need to know about Yama Finance:

• Omnichain collateralized stablecoin
• The decentralized clearing house for liquidity
• Built on Hyperlane
• Launching on Fuel, Eclipse, Arbitrum, and many more chains

Come chat with us on our Discord server and follow us on Twitter!