The YAM token collapsed to $0.62 from $167 in minutes on Thursday, August 13, erasing all gains the project had achieved in two days. A critical flaw in the protocol's rebase function broke the projec
The YAM token collapsed to $0.62 from $167 in minutes on Thursday, August 13, erasing all gains the project had achieved in two days. A critical flaw in the protocol's rebase function broke the project's governance system, leaving the protocol's creator Brock Elmore to declare defeat on Twitter.
"I'm sorry everyone. I've failed. Thank you for the insane support today. I'm sick with grief," Elmore wrote.
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The DeFi token had launched on Tuesday and rocketed to a peak of $167 on Wednesday, giving the project a market capitalization of $475 million. By early Thursday, that value had evaporated to $0.62. The project's total value locked surpassed $500 million in its first days after launching, as the protocol went viral and drew widespread interest from investors.
The crash came after the team discovered a bug in the rebasing function that left the protocol without control over its governance mechanisms. The flaw generated excess yCRV tokens that accumulated in the YAM Reserves contract, adding over $500,000 to the treasury. The team couldn't execute a "bug-fix proposal" to address the issue, leaving them unable to correct course.
The team posted a notice on Medium explaining the problem before issuing an urgent call on Twitter: "We are urgently investigating a potential flaw. We strongly advise exiting the Uniswap YAM/yCRV pool prior to rebase at 8 am UTC (35 mins)."
The fallout left roughly $750,000 worth of Curve tokens locked in the treasury with no clear recovery path. Investors who had poured money into the protocol during its viral launch phase faced near-total losses.
MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.
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