banner
Discovered some bugs in Yeld.finance
Discovered some bugs in Yeld.finance
DeFi

Discovered some bugs in Yeld.finance

By Marco Cavicchioli - 9 Oct 2020

Chevron down
Listen this article
download

Today Yeld.finance announced that some bugs have been discovered in the beta of YELD, and they decided to shut it down.

Yeld.finance is a new yield farming protocol, launched in September, that rewards token owners and stakers with a stablecoin dApp. 

It also allows you to earn ETH thanks to the Retirement Yield Algorithm, staking YELD tokens. 

This same token is designed to increase in value if more people put their tokens in the yield farming dApp, thanks to an improved Buy&Burn system that reduces supply by increasing value. 

In particular, this algorithm divides the daily yield generated by users in half to automatically buy ETH and exchange them with YELD tokens on Uniswap. YELD tokens purchased in this way are burned to reduce the total offer. The current supply of YELD will continue to fall to 10,000 YELD.

At the moment, for example, compared to a total supply of 60,000 YELD tokens, there are only about 32,000 YELD tokens in circulation, while 20,000 are premiums for the pool. 

Stakers are rewarded with YELD tokens whose supply is reduced with each interaction. In addition, staking portfolios are continuously rebalanced to automatically generate the best APY from a variety of loan protocols, such as Aave and Compound.

Yeld Finance bugs cause the token price to collapse

However, despite two audits of the code, one by Bramah Systems on the 2nd of October 2020, and one by CoinFabrik on October 5th, there are still some bugs that have requested temporary suspension in order to correct them. 

In fact, although the dApp is still in the beta phase, i.e. in the operational test phase, the YELD token has been tradable in the cryptocurrency markets since September 8, when it was worth around $33. 

The price remained almost constant until the end of September, when it started to rise. It peaked on 3 October, when it hit $342, more than ten times the value it was only ten days earlier. 

After that, however, the price dropped to $270 and then suddenly collapsed to $138 after the bugs were announced and the service was suspended.

News about the incident is expected tomorrow. 

Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.