Next-Generation Yield Farming. For the Community.
At YELD we are proud of our community: for helping us grow, believing in the project and supporting us daily. We feel the excitement in our Telegram and Discord groups and we hope that we will be able to deliver up to your expectations.
Today, 2-weeks since the beginning of the project, we have managed to grow up to:
- ~500 YELD holders
- ~3,000 Twitter followers
- +1,500 Discord members
- ~500 Telegram members
The smart contracts for our first stablecoin Yield Farming dApp are already built. Our next step is audit them and make sure everything is working great before deploying the dApp to our community. We want to ensure the greatest possible quality.
The smart contracts auditing is scheduled to start on Thursday by the company CoinFrabik. As well, we are negotiating a second possible audit with the company ZK Labs.
Before the Yield Farming begins, we wanted to share with you in more detail the features that YELD will have. Here we go! 🔥
1. How does stablecoin Yield Farming work?
The way yield farming works with stablecoins is by taking your coin balance and moving it between protocols such as Compound, Aave, Fulcrum and others to give you an APY profit.
Where is that profit coming from? Well it comes from liquidity provider transaction fees, borrow fees, government tokens and others. We’re combining popular dApps in a product that rebalances your portfolio for the best returns.
All this is done automatically in the Smart Contracts, so you always have the highest APY from existing DeFi protocols in a very secure way since it’s based on actual utility to generate you a profit on your stablecoin balance without doing anything.
2. How to start staking on the yeld finance dApp?
To stake on yeld.finance all you have to do is go to the dApp frontend (once it’s released), connect your wallet and deposit your stablecoins. You can deposit DAI, Tether, TrueUSD and USDC. Right after, you will start generating a profit in your stablecoins while earning YELD tokens at the same time.
Simply click on the stablecoin you want, introduce how many tokens to stake and click on “Earn” to start staking.
If you stake DAI, you will receive a Smart Token called yeldDAI representing your DAI stake portion. This Smart Token increases in price everyday to represent how many tokens you will get after you withdraw your balance when you’re done staking. It’s what allows you to earn an APY.
Be sure to not trade or exchange that Smart Token to not lose your rewards. You will need it when you want to withdraw from the YELD protocol. Each stablecoin has its own Smart Token.
3. Why should I hold YELD tokens?
You will earn YELD tokens that increase in value all the time based on people using the dApp with the buy and burn mechanism.
Those tokens can be used to earn ETH from the Retirement Yield treasury which constantly increases its balance from people interacting with the dApp. The more YELD tokens you hold, the larger percentage you can extract from the pool daily. Therefore rewarding token holders constantly.
4. What is the Buy & Burn mechanism and how does it work?
The buy & burn mechanism is what increases the YELD token value. The way it works is simple: a percentage of the yield generated from staking stablecoins is used to buy YELD on Uniswap. Then those tokens are burned, reducing the YELD token supply.
Right after that, the token price is increased since the Uniswap pool ratio has been shifted with less YELD tokens and more ETH, meaning each YELD token is more expensive. Giving you more money per token.
This mechanism is immediately applied the moment someone withdraws their staked balance from the dApp and will continue until there are 10,000 YELD tokens left in circulation. All this combined with the other mechanisms will consistently increase the value of your YELD holdings.
5. What is the Retirement Yield and how to use it?
The Retirement Yield system allows you to earn ETH based on your YELD balance and the current supply in the Retirement Yield Treasury contract in a non-custodial manner.
Here is how it works:
- When someone withdraws their staked stablecoins from the yeld staking dApp, a 1% of the yield generated is converted to ETH and stored in the Retirement Yield Treasury Smart Contract.
- To get your portion of ETH based on your YELD holdings, first you have to click on the “Snapshot Yeld Balance” button in the yeld dApp header to tell the Smart Contract how many tokens you currently hold.
- After 1 day or more, you will be able to click on the “Redeem Retirement Yield” button which will check your current YELD balance and if it’s the same or higher as when you created the snapshot, you will get ETH.
This way you earn ETH only after holding your YELD tokens for 1 day or more. How much you get depends on what percentage of the YELD total supply you hold and the current pool balance.
You can repeat this process daily.
If you create a snapshot and the next day you have less YELD tokens than when you made the snapshot, you won’t be able to redeem your Retirement Yield ether. This is to guarantee that users hold the exact balance or more than they’ve snapshotted, rewarding serious holders.
The great thing about this system is that you don’t need to move your YELD tokens to the smart contract. Only a snapshot is required, which is updating a variable in the Smart Contract. Giving you more flexibility by allowing you to move your tokens around and security by not having to rely on the Smart Contract being secure since the funds are always in your wallet.
6. Future Functionalities: Governance
After the main yield farming product has been in the market for several months to guarantee its stability, we will implement governance contracts to give power to the community when it comes to product decisions and future releases.
Even though we have started as a product similar to yearn, we are slowly moving towards our own set of unique features that provide people with innovative solutions to keep them generating higher and higher APYs over the years. Our aim is to have a very strong and support community.
This will allow us to be more capable of creating awesome DeFi products that have never seen before. That is why governance is on the priority to make decisions that make sense in an economical and reliable way.
Thank you very much for reading the update,