If you have a question not answered in this FAQ please post it in the YAM Finance Discord server.
What is the YAM protocol?
YAM is a decentralized cryptocurrency that uses a rebasing mechanism to raise funds for a treasury managed by the community. The community can then use those funds via YAM governance to build out the protocol.
What is YAM?
YAM is the governance token for the YAM protocol. Using token voting, YAM holders have direct influence over the YAM treasury and direction of the protocol. Governance discussions take place on the Yam Governance Forum.
What is rebasing?
Rebases occur every 12 hours. In order to target a price of 1 yUSD, YAM supply is either increased or decreased during each rebase. In theory, an increase in supply would put downward pressure on price towards 1 and a decrease in supply would put upward pressure on price towards 1.
If YAM price is above 1.05 yUSD, YAM supply increases. This is known as a positive rebase.
If YAM price is below 0.95 yUSD, YAM supply decreases. This is known as a negative rebase.
If YAM price is between 0.95 and 1.05 yUSD, YAM does not rebase.
Every YAM holder gets the same increase or decrease in supply every rebase. However, this increase or decrease is offset by the subsequent increase or decrease in price.
What is the math behind each rebase?
YAM does not try to target $1 all at once, instead attempting to do it over 10 rebase periods.
To calculate change in supply we need to determine how far from the peg the current price is. This formula is:
Deviation from peg = (Current Price - Target Price) / Target Price
Rebase Amount = Current Supply * (Deviation From Peg/10)
New Supply = Current supply + Rebase Amount
Does this mean I gain or lose money every rebase?
No. The Uniswap liquidity pools are in sync with every rebase. This means that if supply is increased by 20% in a rebase, price will drop 20% to offset it.
Imagine the following scenario. YAM is at $2 and you hold 100 YAM. This means your YAM holdings are $200. A rebase comes and it’s a positive 20% rebase. You now have 120 YAM but the price will go $1.67, so your YAM holdings are still worth $200!
How does YAM have a treasury?
Every positive rebase, the treasury mints 10% of the rebase amount and sells YAM to the YAM/yUSD Uniswap pool. The yUSD acquired through this action is sent to the treasury which is managed by YAM holders. The current treasury amount can be seen on yam.finance.
Can I farm YAM?
Yes. Currently, you’re able to earn YAM rewards by providing liquidity to the yUSD/YAM Uniswap pool. The rewards given to the pool are 92,500 in week 1, decreasing by 10% every week after. Please realize that you must apply the YAM scaling factor to get the current reward amount at any given time.
What is the scaling factor?
Because YAM supply is constantly changing due to rebases, it’s hard to keep up with the ever changing supply amount. Yam.finance provides a scaling factor that you can use which allows you to go from initial Yam v3 supply amount to today’s supply amount.
What is yUSD?
Why are there so many versions of YAM?
The original YAM protocol was launched August 11, 2020, but had a critical bug that disabled any future governance and control of the treasury. Tokenholders migrated to YAMv2 in order to vote on the parameters for a V3 launch while the protocol was audited. On September 1821, the fully functional YAM protocol was released and V2 tokenholders can now migrate to the new YAM token via the yam.finance UI. The token address is
How does YAMv2 to YAM migration work?
Migration is now available from YAMv2 to a fully functional YAM. YAMv2 to YAM migration is 1:1 according to balanceOfUnderlying, and rebases will be applied correctly upon migration. There is no deadline to migrate, though some YAM will be vested. At relaunch on September 18, 50% of migrated YAM was immediately redeemable, while the other 50% continuously vested until October 18 (30 days after relaunch). This means if you were to migrate on October 18, all YAM would be immediately available for redemption.
Hold your YAMv2 in a wallet that you control, such as Metamask or Trust.
Follow the instructions on yam.finance to connect your wallet and perform the migration.
Because YAM is new, some wallets may not display the YAM token immediately after migration. To add YAM in Metamask, add a custom token and paste in the YAM token address when requested: 0x0aacfbec6a24756c20d41914f2caba817c0d8521
What are the “Save Yam” Delegator Rewards?
Delegators with equal to or under 27 votes will receive a flat 27 YAMv3 reward, while delegators with over 27 votes will receive a 1:1 YAMv3 reward for votes delegated. Rewards will be continually vested until December 17, 2020 (90 days after relaunch).