Been digging into $YAM, and I think the rerating setup is starting to get more interesting.
The core mechanism is already live:
β Every trade on Sushi V3 pays 1%
β 0.67% goes into the Feast Pot
β Every Sunday the pot buys and burns YAM
β Rebase is capped at 3% today, then falls to 1.5% β 0.75% β 0.375% β 0.30%
As that cap falls, more of the Feast can create a supply crunch.
Their recent update is more on the demand side.
@PlayFrensFun added YAM to its ETH-backed baskets, with fees from Gacha activity being recycled into more YAM buys.
This means the flywheel is no longer entirely dependent on people trading $YAM to create demand for $YAM.
At a $100K market cap, this demand matters.
OG YAM reached ~$600M TVL during DeFi Summer 2020. Different token, different mechanics, but the lore is still there.
If Robinhood Chain keeps growing and more apps start integrating $YAM in ways that create recurring buys, I think the market starts looking at this very differently.
YAM feels like an asymmetric bet.
2020 DEFI OG energy back on the menu?
$YAM bringing back the experimental, defilationary defi vibes to RH and things are looking interesting
In 2020 we saw a very similar concept reach 57M ATH with 600M TVL... While the current token sitting under 100k.
Core points for YAM:
πΈ Sushi V3 LP locked forever. No removeLiquidity function. Rug is structurally impossible.
πΈ Every trade pays the standard 1% pool fee β majority feeds the Feast Pot.
πΈ Every Sunday 20:00 UTC the Feast triggers: pot buys $YAM and burns it. Holders get the rebase (capped, currently 3%/week). Excess burn = pure deflation.
πΈ Cap halves over time (3% β 1.5% β 0.75%β¦ β 0.30% steady state).
Yesterday new way to earn on your YAM dropped - collabing with $FRENS, you can now add your YAM+ETH basket and get paid in ETH for each spin.
Team seems to have some aces under there sleeves to make YAM even more deflationary.
I can see this getting attention from the OGs who remember the innovative, delfationary DEFI protocols which reward you for holding and conviction.
Send YAM to millions @yamtoken