Due to the lack of adequate code audit, just like in some other DeFi Smart contracts, a single line of code has caused the crash of the new Yam Finance DeFi project. The chief executive officer of Quantstamp, a blockchain security firm Richard Ma informed Cointelegraph that several decentralized finance projects are kicked off without the right auditing.
Richard Ma included that the most efficient way to use reverse-psychology is by launching without an audit. It creates the feeling that these DeFi contracts are in-demand and that investors are one of the early adopters.
Many well-known projects, such as Cream, Yearn Finance, as well as Yearn Finance II, have also launched the same way, as stated by the CEO. Although, he said DeFi lovers have to paranoid about these valued projects, Ma further mentioned that the early days of a DeFi is the most challenging phase.
A project starts to gather much informal code audit if it pulls through the early phase. Quantstamp ended up carrying out an official security review later on in the development phase of Yearn Finance. Yam was not as lucky to get to that stage. Even though Ma carried out an audit on the part of Yam's smart contracts unofficially, he didn't review the part of the code that resulted in the project's failure. After examining the code, Ma said just one line of code destroyed the Yam farmers.
Ma has confidence that the collapse of Yam won't break decentralized finance as its users are usually okay with volatility. Ma further stated that so many crypto traders invested in the now obsolete project.
Source: Cointelegraph
