Beta dApp is live! 🚀
Today we are finally launching the Beta of our platform, it is a very exciting moment for us, hope we get to a high rate of adoption and we deliver what the community hoped to have.
Firstly, we want to introduce the utility of the YELD token:
- Yield Farming (20,000 YELD rewards)
- Retirement Yield (earn 1% of the interests generated of the yield farm)
- Buy & Burn Mechanism (profit from a decreasing supply just by holding YELD)
- Governance (have voting power on the next step of the project, available soon)
After Governance the community will take the lead in the project and will decide the next exciting implementation.
As the launch has just happened and some people are eager to know how to use our platform, so the structure of the article will be:
1) Welcome to the YELD Staking dApp
2) Overview of our Platform
1) Welcome to the YELD Staking dApp!
The dApp is now live at: https://yeld.app
To use it, go to the website, log in with your wallet and begin using it.
Understanding how to stake
You will see many options. Mainly 4 stablecoin blocks and a section for staking $yeld for the retirement yield functionality.
Simply click on the block where you want to stake your stablecoin, introduce how many stablecoins to deposit on the left input and click on “Earn” to deposit your tokens.
For instance, if you want to stake 2000 DAI, you’ll click on the DAI block, introduce 1000 in the left input and click on “Earn” to stake your coins. Those tokens will be moved to the Smart Contract and you’ll start generating DAI and YELD tokens.
Once you’re done staking, open up the DAI block again, introduce 1000 in the right input and click on “Claim” to get your original DAI + the generated DAI + the generated YELD. The amount will depend on how long you’ve staked your stablecoins.
You’ll generate YELD from staking your coins, in fact it’s the bulk of the APY that you see on each stablecoin. In order to extract the YELD generated while keeping your stablecoins in the contract (so they continue generating a APY), open up the stablecoin block and click on “Redeem YELD”. That will send you the YELD generated to your wallet while keeping the stablecoins in the contract.
Using the Retirement Yield functionality
To use the Retirement Yield functionality, click on “Stake Yeld Tokens” at the top of the dApp.
A prompt will be displayed with the amount to stake.
Simply introduce how many YELDs you want to stake. After that, you’ll receive 2 transactions:
- One to approve the YELD tokens to the Smart Contract so they can be used on your behalf.
- And another to move the tokens to the Retirement Yield Smart Contract so you can start using the functionality.
After at least 24 hours, you’ll be able to click on “Redeem Retirement Yield” button to get your
ETH from the pool based on your staked YELD. Before the 24 hours have passed, the button to redeem your Retirement Yield ETH will say “Retirement Yield Available in 24h” which means you can’t get your reward yet and need to wait until the 24 hours have passed.
Whenever you want, you can click on the “Unstake Yeld” button to extract your staked YELD tokens.
Beta Release Details
The dApp is in a 2 day beta period where only those that hold at least 5 YELD can use the dApp. If you don’t have at least 5 YELD, you won’t be able to interact with the dApp while the beta period is live.
The beta ends in 2 days after which you’ll be able to use the dApp without any requirements, without having to hold 5 YELD in your wallet.
Making sense of the APY returns
The APY is how much money you generate from the tokens you’ve staked in the dApp. Right now for DAI it’s about 1000% APY which means you’ll get 10 times the money you stake in the dApp after 1 year.
Those high returns come from the YELD price since the dApp gives you 100 YELD per 1 million stablecoins staked. What it does is it converts the YELD value to USD dollars and calculate your returns.
The more expensive the YELD token is, the higher the APY will be. You’ll still get YELD tokens and not USD whenever you stake in the main stablecoin staking pools.
The remaining APY comes from the stablecoin rebalancing functionality. It’s a core component of many Yearn clones where your stablecoins are moved between protocols such as Compound and Aave to generate you money from transaction fees, borrow fees and others. The protocol moves the tokens to the most profitable dApp at every minute.
2) Overview of the YELD platform
This is probably the most important functionality of our platform (as of now). There are 2 components of this feature from which the APY is calculated:
- Stablecoin Rebalancing among different platforms
- Rewards payed from our Reward Pool of 20,000 YELD
When you deposit stablecoins in our platform, there are smart contracts that are moving the balance around the different DeFI protocols such as Aave, Compound, Fulcrum and others. The rebalancing has one goal, to maximize the earnings that your stablecoins bring from trading fees, borrowing fees and governance token fees.
The final APY generated is the sum between the APY generated from rebalancing and the rewards that are coming from our pool.
Let’s imagine the following scenario, if currently YELD platform is offering 100 YELD per every $1,000,000 and the highest APY among the DeFi protocols is found on Aave at 6.75%, the total APY that our platform offers would be the following:
APY offered in Aave = 6.75 % APY
Daily Reward offered by YELD = 1 YELD per $10,000
Current Price YELD: 300$
Final APY = 6.75% APY + (0.01% * 300) * 365 = 1101.75%
Burning of Tokens
The DAI system generates a 4% per year where we use half of it to burn 50,000 tokens with the buy and burn system.
We need about 15 million usd right now (at $300 usd per yeld) to burn all those tokens. That means users will have to stake about:
- 750 million usd worth of stablecoins to burn all those 50k YELD in 1 year.
- 375 million usd worth of stablecoins to burn all those 50k YELD in 2 years.
- 50 million usd worth of stablecoins to burn all those 50k YELD in 3 years.
Now the DAI vault APY changes all the time. Sometimes it’s 10% and others it can be as low as 3%. Meaning the time it takes to burn those tokens will be variable without knowing exactly when they will be burned.
By staking your current YELD you will be able to claim ETH in our platform. This mechanism what does is reward the stakeholders who remain in the platform with ETH.
When any of the investors that was Yield Farming unstakes their position from the platform and aims their rewards, 1% of their yield is converted to ETH and stored in our Retirement Yield Treasury.
The funds in the treasury are distributed to the token holders and the amount earned is calculated on the total total YELD supply, the balance users hold and the current pool balance.
Hope you are as excited as we are for this launch,
We are still in the beta period, so any doubts and suggestions will be answered throughout our channels, you can find us at:
Lastly, as always, thank you all for your continued support. 💪