I. Introduction | II. Progress | III. Conclusion
This is the third development blog detailing the development progress of Yamfore. This development blog aims to update the community on the team’s progress and provide greater transparency throughout Yamfores development process.
As stated in a prior announcement, we’ve unfortunately had some minor delays in producing some tangibles this quarter, mainly in the form of the community public testnet. On the other hand, we’ve also fortunately managed to bring some key improvements / updates to the protocols base design, that we’ll be sharing with you in this devblog.
Below are some of the key points we’ll be covering in this blog:
Due to some unforeseen development hurdles, and general lack of polish, we’ve made the hard decision to delay the public testnet, until next quarter. We realize this is unfortunate news to many, but this was necessary, to ensure that we maintain a polished, and high quality public testnet experience for the community.
Lending Term Refinements
We’ve completely revamped how the ADA/CBLP lending ratio is determined. The ADA / CBLP lending ratio will now be simply dictated via on-chain governance amongst $CBLP token holders. During times of high demand, $CBLP token holders can vote to increase the lending ratio. This ensures a higher allocation of $CBLP is required for a borrower’s loan position, bringing added value to $CBLP token holders due to the surplus demand in the open-market. And during times of low demand, the rates can be adjusted accordingly to ensure the protocol treasury remains highly utilized, and capital efficient.
Previous Lending Rates:
New Governance Dictated Lending Rates:
This is a notable change from the previous implementation, that keeps a similar level of capital efficiency, whilst simplifying the core business logic of the protocol. This change also completely mitigates the multi-loan attack issue Yamfore faced. The multi-loan attack refers to when a sophisticated whale actor iniaties multiple loan transactions simultaneously via the CLI tool / automation, and secures a favorable ADA/CBLP loan ratio that isn’t in-line with the previously required supply / demand scale.
This was due to the protocol only being able to asses the required ADA / CBLP lending ratio per individual block. The previous resolution to this issue was simply to artificially limit how much value in loan payments could be facilitated by the protocol per block. This was to ensure the appropriate ADA/CBLP lending ratio was being adhered to at all times, but unfortunately, also significantly affected scalability as well. This new change now resolves the issue at hand, without affecting scalability at all.
The change to a governance voted lending ratio, also simplifies how Yamfore deals with stablecoin assets. Yamfore now treats all stablecoins received in its treasury as “transitory assets”. This is due to the protocol’s main objective of keeping a high level of capital efficiency, thus immediately lending out any & all capital received to borrowers. Because of this, stablecoins are never “stored” in the stablecoin treasury for any significant periods of time. This obviously also negates the need to keep an even distribution of stablecoins within the protocol. The exact type of stablecoin given to a borrower as payment for their loan position will be randomly determined by the protocol at the moment of loan initiation, and mainly be subject to availability.
Finally, borrowers of Yamfore will also now be required to have their deposited ADA collateral reach 110% of the borrowed principal amount, before being able to close their loan position. This 10% flat fee is the sole payment given to arbitrageurs as an incentive for their services. This change brings Yamfore more closely to the offering of other arbitrageurs markets and ensures competitive incentives for arbitrageurs are present.
Current Open-Source Status
Yamfore has always had plans of open-sourcing the entire codebase to the community. This of course hasn’t changed, but the timeline of doing so has been adjusted. Yamfore open-sourcing the entire codebase prematurely, without already having the appropriate market-share, community size and dominance, would only allow for opportunist developers to exploit the hard work & effort of the team, for no tangible benefits.
The $CBLP token holders would be significantly affected as well, since a different team with a much bigger community, and resources could simply come along and benefit from the months of work our team has put into building Yamfore. They would most likely capture the market as well, leaving $CBLP token holders inappropriately rewarded for their ground-floor investment in a novel lending protocol.
As stated already, we do have plans to open-source all of our code base, but that will have to come after already establishing a notable foothold, and properly benefiting from the first mover advantage. This is a change from our previous stance, but one we felt necessary, due to the harsh development landscape of Cardano. Most other teams building on Cardano share a similar sentiment / have the same strategy.
We still strongly hold the opinion that open-sourcing code is extremely important from a community aspect of safety, and improving the general development experience on a particular blockchain. Please feel free to follow the official Github Repo to view all our source-code, when eventually released. https://yamfore.gitbook.io/yamfore/security/audits
In conclusion, the development situation hasn’t changed drastically, and we now look forward to sharing our deliverables with the community next quarter. In closing thoughts, theres recently been some unfortunate news with two prominent projects building on Cardano being unable to continue development, and put on indefinite hiatus. This has unfortunately cast widespread uncertainty and doubt on the development landscape of the Cardano ecosystem.
Due to this, we felt the need to make an official statement on the current financial situation of Yamfore. There is sufficient funding to finish core development of the protocol. The team has been realistic, and conservative with our burn rate from day 1, we’ve also been bootstrapped from the start, and started building in the bear market after all.
Although capital for the core development of Yamfore isn’t an issue, there still remains a need to secure further funds to acquire an official smart contract audit. The team has been strategizing on potential avenues to raise the required funds, and we’re more than confident in eventually realizing a worthwhile solution in time.
🌎 Website: https://yamfore.com/
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