Unaudited contracts resulted in its death after all.
A bug in the hastily-developed contracts for Yam Finance resulted in the governance contracts being “permanently broken” and $750,000 worth of Curve tokens being locked from use.
Andre Cronje, DeFi developer and founder of the yEarn protocol, told Cointelegraph that this resulted from a bugged rebase function.
Yam is supposed to be a stablecoin with a similar mechanism to Ampleforth, with the contracts creating or destroying supply based on the token’s price to maintain a $1 peg.
Cronje said that a bug in the rebase function meant that each call after the first one would “exponentially increase [supply] every time by 10^1e18.”
This results in a massive influx of new tokens, far more than there should have been.
But there were three parts to the bug, according to Cronje.