DeFi Yield protocol is one of the novel DeFi platforms that offer enticing rewards based on solid fundamentals. The protocol has different systems of controlling inflation and ensures that whales cannot control their tokens’ price.
The financial revolution brought about by cryptocurrencies has been massive in the past decade, with anonymous payments, cheap transaction fees, and its role as an investment tool. Cryptocurrencies have developed into a multi-billion dollar industry. The novel nature of cryptocurrencies has led to the development of new products that can leverage blockchain technology. One of these sectors is decentralized finance, popularly known as DeFi. Decentralized finance has brought about new ways to use cryptocurrencies. Terms like lending, yield farming, staking have become a norm due to this growing sector. The growth of decentralized protocols has been rapid, with the sector now worth over $40 billion from $5 billion in January 2020. Despite this immense growth, DeFi is not without its pitfalls, as several protocols have suffered security breaches and investors losing their funds. Other problems include manipulation of DeFi protocols by whales and inflation problems in the value of tokens. DeFi Yield protocol aims to solve these problems by offering a unique platform with novel features. DeFi Yield ProtocolDeFi Yield protocol is one of the novel DeFi platforms that offer enticing rewards based on solid fundamentals. The protocol has different systems of controlling inflation and ensures that whales cannot control their tokens’ price. Users are able to earn yields by offering liquidity on its platform for a defined period in a process known as staking. Since its inception in the latter half of 2020, the protocol has amassed a total of $63 million staked within its liquidity platform. During this period, it has paid over 2,500 ETH and processes rewards of over 106 ETH daily. The protocol is also entirely secure and has not had any problems regarding its mechanism, largely due to its control features. DYP uses an inbuilt anti-manipulation system that ensures that a whale cannot control its token price. Rewards generated daily are exchanged for ETH by the protocol and distributed directly to users’ wallets. Thus it eliminates the need to convert from DYP to ETH and maintains the integrity of the platform. An anti-inflation system is also put in place by the DYP smart contract to prevent its native token devaluation. Once the smart contract detects that the daily price of DYP has changed by more than 2.5%, it automatically generates only the number of rewards necessary. However, if the existing interest is in surplus, the extra is locked within the protocol and added to the next day’s rewards. If there is a continuous rollover of excess interest, a governance vote is initiated after seven days. During the voting, community members will decide whether to redistribute the surplus funds or burn them from circulation. How to Participate in DYP StakingLike most liquidity platforms, DYP has ensured that its staking process is pretty straightforward. Liquidity providers are only required to stake supported liquidity tokens into the four staking pools on the platform. At the moment, four distinct liquidity pools are offered by DYP and include DYP-WBTC, DYP-USDC, DYP-USDT, and DYP-ETH. Rewards range from 248% (30,000 DYP) to 692% (100,000 DYP) monthly. Also, stakers can lock their tokens for three days to a maximum of 90 days. Farming dApp LaunchedApart from the liquidity pools explained earlier, DYP has launched a dApp farming platform that offers similar rewards. This staking platform differs slightly as it offers rewards in DYP tokens for a fixed percentage. Liquidity providers can stake supported tokens from 30 days to 120 days and receive fixed rewards ranging from a minimum of 20% APR to 35% APR. DYP also integrated a form of incentivization within the dApp in the form of a referral system. Users will receive 5% of the initial stake of every successful referral. The farming dApp has over $900,000 staked in its liquidity pools since its launch in January. More Developments in Store
DYP continues to innovate, and new products are expected to be released by the DeFi platform in the first half of 2021. DYP Earn Vault is one of the products and will be a platform for earning rewards. Users will be able to stake several tokens, including stablecoins and Ethereum, for rewards. Also, a tool dashboard is set to be launched by the DYP development team. The tool dashboard features many options, including charts, trading parameters, and a trust system. The trust system is based on different factors and analyses defi projects. Users will evaluate which projects to invest in using the myriad of options provided by the product.