What’s Under the Yam Umbrella?The new protocol has something called a MetaPool which is made up of several Coverage Pools, each of which covers a specific DeFi protocol or smart contract. Liquidity providers have been replaced by protection providers which can deposit collateral into these pools. Protection seekers can individually access these pools to gain protection for specified protocols and deliver rewards for the providers. Highly configurable ‘Factories’ can define the MetaPool’s fees, payout rates, and protocols covered. Protection seekers deposit funds into a Coverage Pool, receiving ERC-20 tokens back that track their deposits. Their level of protection will correspond to the amount staked via the application of a funding rate. In the event of an exploit on a DeFi protocol covered by a MetaPool, a claim is submitted to an Arbiter in a similar way to Nexus Mutual token insurance. If the Arbiter determines a claim to be valid, the MetaPool pays out an amount equal to the total current stake in the Coverage Pool plus any funds not utilized by other coverage pools within the MetaPool. The announcement added that the team is currently finishing up the development of the alpha version of the Umbrella Protocol code, after which it will be tested internally with the Yam community.
YAM Token and TVL UpdateThe YAM governance token has taken a backseat in recent months as new DeFi tokens enter the market. Prices for YAM have pretty much flat-lined over the past month or so, trading between $5.50 and $8. Today YAM is at $6.50, still down over 87% from its all-time high of over $50 in early September. The Yam Finance dashboard reports a total value locked of $2.4 million in its farms, with an average annual percentage yield of 36.5%
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.