Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.
Editor's Note: This article comes from
Blue Fox Notes (ID: lanhubiji)
, reprinted by Odaily with authorization.
After a period of silence, elastic stablecoins have begun to attract everyone's attention again, including AMPL, ESD, and YAM. YAM has always been a highly controversial elastic stablecoin practice. It is a fork of AMPL, and at the same time it draws on the distribution mechanism of YFI. It has developed a different evolution path from AMPL.
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YAM Reserve Mechanism and Its Long-Term Sustainability
In the design of YAM, it has a fund reserve, and how the funds of this reserve are allocated is determined by the community. This reserve pool can bring sufficient funds to developers, which is conducive to its sustainable development. From this perspective, every DAO project should consider configuring a fund reserve pool, which can obtain a certain proportion of tokens from the development process of the protocol. Thereby supporting the long-term development of the protocol.
If all tokens are distributed to investors or the community, it will be good for investors in the short term, but not in the long run. The most important thing is how to make the cake bigger, and the project developers who support the continuous iterative development of the protocol should also get due incentives. From the perspective of long-term investment, giving developers enough incentives is in the interests of project development and also in the interests of token holders.
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The product with the highest priority in YAM
The YAM community has planned its future product evolution plan, among which the Umbrella protocol, YAM DAO Set-reserve management, and the introduction of full-time contributors are the highest priorities it has determined.
1. Umbrella protocol: YAM’s DeFi insurance product
According to YAM’s disclosure in the community, YAM is currently developing the Umbrella protocol and is close to launching a test version. The Umbrella protocol is a DeFi protection protocol. From its description, it sounds like a DeFi insurance protocol. In order to obtain the protection of their DeFi assets, users need to pay a certain fee, and users who provide protection can earn this part of the fee, which can provide protection for any DeFi protocol and create a metapool without permission.
However, it is not clear how the specific mechanism is designed, how it works, and how it differs from Cover, Nsure, and NXM, and it needs to wait for the subsequent launch.
YAM DAO Set cooperates with the Set protocol to manage its reserves with DAO governance. Utilizing the Set protocol, one can automatically rebalance their crypto assets according to a custom portfolio strategy. Additionally, YAM adopts an on-chain governance approach that can assign specific protections to its Set portfolio managers to manage its reserve assets. The first purpose is to achieve more flexible processing, and the second is to simultaneously realize a decentralized management model that does not require trust.
Its next plan is to complete the reserve management contract; vote on the reserve manager; vote on the distribution of the YAM DAO Set; execute the proposal on the chain to invest funds in the Set and start management, etc.
3. Bring in full-time contributors
Since YAM is a completely decentralized community governance, in order to pay full-time contributors, it is necessary to use the new contributor governance contract. The amount and amount of remuneration paid to full-time contributors (responsible for development and organization work, etc.) are currently being discussed in the community. assets. Next, the payment structure and amount need to be determined; individual contributors need to be voted on the chain; the payment plan schedule is initiated, etc.
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Relatively low priority plan for YAM
The above three points are the current key tasks of YAM. At the same time, according to its plan, some tasks with less priority are also conceived or in progress. These include UMA-based series of derivatives; YAM Factory incubator; YAM DAO Set-investment tool products, etc.
1. UMA-based series of derivatives
YAM launched the concept of "UMA OnChain Metric Derivatives", which is still in the concept construction stage. YAM plans to use UMA's financial contracts and DVM to create a series of on-chain metric derivatives, such as gas price futures, TVL futures, AMM trading volume derivatives, etc. Such products have speculative and hedging functions, and no other DeFi protocol has launched such products.
2. YAM Factory incubator
YAM Factory is also a product under conception. YAM Factroy is a protocol studio or incubator. If some developers want to build products, they can apply to the YAM ecosystem for funding, technology, market and design support. The next step is to build the framework of Factroy's operation and promote its incubator program to the DeFi ecosystem to attract more developers to join.
3. Yam DAO Set - investment tool product
It is also a product that YAM is currently developing, and it can charge management fees for the assets it manages, which is a built-in feature. The next step for Yam DAO Set is to use its reserve funds to prove its YDS effect, and then consider introducing other DAO reserves and ordinary users.
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