Today in DeFi - Return of the YAM, The Curvening, Aave V2
Return of the YAM
Everyoneβs favorite controversial root vegetable seems to be making a comeback. In its latest Medium Post, Yam Finance detailed its plans to move on from its tragic first version.
It will occur in two phases. The first phase, YAMv2, will be a migration. First generation YAM holders will be able to burn their YAMs to mint second generation YAMs. These YAMv2s will not rebase.
Then, the complete YAM system will be audited and redeployed as YAMv3. YAMv2 holders will be able to migrate to the updated YAMv3 token via an additional contract.
All of this was pending community support and funding for audits, which quickly occurred:
Looks like the YAM saga isnβt over yet!
The Curvening
As we explained yesterday, Curveβs launch didnβt exactly go as smoothly as hoped. However, it was still generally a huge success. Curve TVL rocketed from a low of 212M on August 13th to now 792M.
This had an interesting side-effect of also pumping up Aaveβs TVL as well. Since Aave allows for collateralized loans against a wide variety of tokens, itβs one of the favorite tools of Yield Farmers.
This Curvening effect has flipped the DeFi Pulse scoreboard, shooting Curve and Aave up, while Compound, and Synthetix have gone down in the ranks.
Aave V2
Aave Announced V2. This update has a long list of features, but here are some that stand out to me:
Repay with Collateral: Deleverage with just collateral in one transaction.
Debt Tokenization and Native Credit Delegation
Fixed Rate Deposit: Predictable income for LPs
Private Markets: Will integrate with RealT
Native Trading: can trade Debt, or Collateral. Also margin trading.