YAMs Replanted and Rebased. What Now?

Trent Elmore
Sep 21 · 5 min read

This piece has also been posted to the Yam Discourse Forum, join the conversation here.

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Following a successful relaunch of the audited and fully functional YAM, it is time to turn our eyes towards the future. The relaunch of YAM was meant to largely replicate the initial YAM parameters in order to expedite the governance and auditing process. We are now able to begin gathering live data on the functioning protocol, tuning parameters for optimal functionality, and leveraging the treasury beyond high-yield stablecoins.

This is less of a roadmap than an opportunity set. It is the product of conversations I’ve had with multiple community members, but it is not exhaustive and there’s no mandate to address these opportunities for improvement, though I believe doing so will lead to the best outcomes for the protocol. It is ultimately up to community members as to where they would like to dedicate their time and resources.

At a high level, there are four main areas in need of development, each of which has several outstanding issues or areas for improvement.

Protocol Optimizations:

As mentioned, the relaunched Yam protocol retains most parameters from V1. This was to enable a efficient governance and audit process, and was not to signal the protocol is fully optimized. We should be thinking critically about key system parameters.

  • RageQuit Functionality. The RageQuit functionality would allow users to burn Yams for a proportional share of the treasury. This would fully enable the treasury to act as a price floor, as arbitrageurs would be able to purchase YAM and redeem from the treasury if it were to ever trade below its book value.

Treasury Management:

Treasury management is key to the success of YAM in many ways, as its ability to generate yield increases the size of the treasury and value of the protocol.

  • Yield-bearing strategies. Currently the treasury employs a yield bearing strategy by utilizing yUSD. This allows for sustainable growth with limited downside, as it’s based in stablecoins. In the future, we could employ additional yield bearing strategies, utilizing aggregators or base protocols.

Interface and Usability:

In addition to the direct functionality of the protocol and its treasury, there are a number of supporting tools and infrastructure that will improve awareness, usability, and transparency.

  • Creation of on-chain governance interface. We expect this to be completed in the next few days, and will allow for the final piece of the governance process (forum discussion >> Snapshot signalling >> On-chain proposal and execution) to be easily accessible.

Organizational Needs:

While a lot of attention has been paid to how to support and compensate the users of Yam who delegated or missed migration, there has been little directed to how to make Yam a sustainable protocol that compensates its contributors. We must appropriately incentivize the people who enable Yam through their time, effort, and technical contributions. I think a strong precedent has been set for this in directing 1% of treasury purchases to Gitcoin Grants, but we must also take care of our own.

  • Ecosystem Contributors. The creators of Zippo, the Yam Chainwiki, and yieldfarming.info have provided the Yam community indispensable information and interfaces for the Yam community (and more), and deserve to be rewarded.

As you can see, there is a lot of work that can be done to improve Yam. Despite the last month of progress, the relaunch of Yam is truly a starting point.

If you would like to get involved, you can join the Discord, or visit the forum.

Yam Finance

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