DeFi Yield Protocol Latest Crowdsale and Project Report

On the 25th of October, we told you that the community response to the launch of the DYP Token Community Crowdsale Whitelist was overwhelming. Since the opening of the whitelisting portal two weeks ago, we have received more than 2,000 individual sign ups with a pledge of more than $7 million.
Our crowdsale started on the 26th of October and it is scheduled to end on the 8th of November 1:00 p.m. UTC. We managed to sell 561,246 DYP tokens from the 5,000,000 DYP tokens allocated to the investors and raised 2,782.12 ETH worth $1,240,662.17 at the current ETH market price. Now, the big question is, if we had 2,000 individual sign ups with a pledge of more than $7 million, why did we manage to sell only 561,246 DYP tokens worth $1,240,662.17? The answer is pretty simple, and we will try to explain it as best as possible in this report:

Our Community Crowdsale Whitelist application was launched on the 12th of October and ended on the 26th of October. This period was considered one of the best for DeFi projects so that is why we had more than 2,000 individual sign ups with a pledge of more than $7 million for the DYP token. We are going to provide some essential information from different publications about the aforementioned period:

DeFi Boom Makes Uniswap Most Sought-After Crypto Exchange
Uniswap may seem like just another cryptocurrency buzzword, but for those in the know, it’s the latest gateway to quick riches.
The so-called decentralized exchange, or dex, has become the hottest trading platform in the niche sector of digital assets known as decentralized finance, or DeFi.
https://www.bloomberg.com/news/articles/2020-10-16/defi-boom-makes-uniswap-most-sought-after-crypto-exchange

Uniswap Captures $2 Billion Locked, Dex Volume Outpaces Second-Largest Centralized Exchange
The decentralized exchange (dex) built on Ethereum, Uniswap has accumulated a whopping $2 billion in total value locked (TVL) this week. Tuesday’s data shows out of all the decentralized finance (defi) application’s Uniswap dominates the $11 billion landscape by over 18%.
https://news.bitcoin.com/uniswap-captures-2-billion-locked-dex-volume-outpaces-second-largest-centralized-exchange/

Uniswap topped August’s record high trading volume in the first 10 days of September, reaching $6,729,691,041 mid-morning on Thursday, leaving almost three weeks to push further into record territory.
https://www.coindesk.com/uniswap-september-volume-record-10-days

Ethereum’s DeFi Trades Skyrocketed in Q3 2020, but Bitcoin Volume Declined
A quarterly report from eToro multi-cryptoasset trading platform indicated that while the decentralized finance (DeFi) sector was bullish in 2020’s third quarter (Q3), Bitcoin trades decreased in contrast.
https://blockchain.news/news/ethereum-defi-trades-skyrocketed-q3-2020-bitcoin-volume-declined

Our crowdsale started on the 26th of October and it is scheduled to end on the 8th of November 1:00 p.m. UTC. Compared to the whitelist period, it was a very bad period for Defi as most DeFi investors shifted to Bitcoin. We are going to provide some information from different publications about this period:

Declining DEX volumes reflect DeFi investors’ shift to Bitcoin, data shows
Steadily declining DEX trading volumes and disintegrating DeFi token prices suggest investors have shifted their focus back to Bitcoin.
https://cointelegraph.com/news/declining-dex-volumes-reflect-defi-investors-shift-to-bitcoin-data-shows

Prolonged DeFi Slump Impending? Uniswap Volume Drops 83% Since Peak
The decentralized finance (DeFi) market is slumping as large-cap tokens like Uniswap (UNI), Yearn.finance (YFI), and Maker (MKR) decline. Atop the lackluster performance of major tokens, the volume of the Uniswap decentralized exchange has substantially dropped.
https://www.newsbtc.com/news/uniswap/prolonged-defi-slump-impending-uniswap-volume-drops-83-since-peak/

Major Defi Token Prices Plunge, as Money Moves Back Into Bitcoin
Major decentralized finance (defi) projects fell sharply in October, with token prices tumbling by between 30% and 56%, as money appears to be moving away from the overhyped space and back into bitcoin.
https://news.bitcoin.com/major-defi-token-prices-plunge-as-money-moves-back-into-bitcoin/

You can also see what happened with the volume on Uniswap after 26th of October:
https://www.coingecko.com/en/exchanges/uniswap#statistics

Now, you understand why we only managed to sell 561,246 DYP tokens worth $1,240,662.17 out of the 5,000,000 DYP tokens allocated to investors. Is this bad for us? No! We consider this is an excellent result during this period when most investors have moved back to Bitcoin. DYP project has attracted many investors due to its unique features when most of the projects were affected by the Bitcoin evolution.
It is also bad because we will not be able to add 1,000,000 DYP tokens to Uniswap liquidity, and $2,500,000 is needed to do this. Also, a lot of liquidity need it to achieve the roadmap for 2020 and 2021:
25% of the funds raised during the crowdsale will be used for the initial liquidity from Uniswap;
25% will be used for marketing extension and listing on CEX exchanges;
50% will be used for platform development between Q1/2021 and Q4/2021;
Please note that since we started developing the DYP platform, we have spent more than $400,000 from our funds. Only a simple smart contract with no complex business logic costs around $7,000. More advanced contracts cost up to $45,000 and more. It’s not uncommon large organizations with specialized knowledge ask up to $100,000.
https://hackernoon.com/problems-costs-of-smart-contract-development-e86e9446ba9e

What happened to the DYP project in the last 30 days? The team has worked hard and achieved several results:

- Between the 12th of October, and 25th of October our developers added 810 code lines to the Github repository
https://github.com/dypfinance/dyp

- Audit of the DeFi Yield Protocol token by Blockchain Consilium was completed on the 18th of October
https://github.com/dypfinance/contract-security-audit/blob/main/Blockchain%20Consilium%20Audit/DYP_AUDIT.pdf

- DeFi Yield Protocol featured on Cointelegraph on the 19th of October
https://cointelegraph.com/press-releases/defi-yield-protocol-your-new-defi-gem-with-anti-manipulation-feature

- DeFi Yield Protocol featured on NewsBTC on the 21st of October
https://www.newsbtc.com/press-releases/defi-yield-protocol-takes-yield-farming-to-the-next-level

- On the 21st of October, we started the collaboration with a Blockchain company for developing the Staking dAPP and Voting dAPP.

- Our first AMA session that lasted 24 hours ended on the 23rd of October
https://dypfinance.medium.com/defi-yield-protocol-first-ama-questions-answers-85880cfdf4f6

- The second audit of the DYP token was completed by PeckShield on the 26th of October
https://github.com/dypfinance/contract-security-audit/blob/main/Peckshield/peckshield-audit-report-dyp-v1.0.pdf

-On the 26th of October, our developers with a Blockchain company, began developing the DYP Staking:
1. Staking dAPP (Smart Contracts + Frontend integrated with MetaMask & Trust Wallet) for 4 pools, rewards distributed periodically — disbursed pro-rata basis to stakers.
2. Uniswap Integration for calculating slippage and swapping with appropriate slippage tolerance (-2.5%).
3. Voting dAPP and governance contract for executing smart contract functions to either burn or disburse the rewards as DYP to LP stakers, integrated with staking contracts.
4. Testing and demo on Rinkeby test network before deployment on the main network.

Technologies Used
1. HTML5, CSS3, Bootstrap 4, React(display)
2. Web3.JS (MetaMask connection / blockchain connection)
3. Solidity (Smart Contract & Uniswap Integration)
4. Various third party Open Sourced licensed libraries and helper functions.

Wallets Supported
1. MetaMask
2. TrustWallet

- Between the 26th of October, and 8th of November our developers added 964 code lines to the Github repository
https://github.com/dypfinance/dyp

- On the 27th of October, we signed a media sponsorship contract with Gokhshtein Media for marketing analysis, magazine advertising, website sponsor, and community growth assistance (Gokhshtein Media is a unique and leading magazine and media outlet in digital assets, blockchain technology, and lifestyle)

- As of the 4th of November, the staking logic was ready. Here, you can find some parts from the code:
}

function getPendingDisbursement() public view returns (uint) {
uint timeDiff = now.sub(lastDisburseTime);
uint pendingDisburse = disburseAmount
.mul(disbursePercentX100)
.mul(timeDiff)
.div(disburseDuration)
.div(10000);
return pendingDisburse;
}

function getDepositorsList(uint startIndex, uint endIndex)
public
view
returns (address[] memory stakers,
uint[] memory stakingTimestamps,
uint[] memory lastClaimedTimeStamps,
uint[] memory stakedTokens) {
require (startIndex < endIndex);

uint length = endIndex.sub(startIndex);
address[] memory _stakers = new address[](length);
uint[] memory _stakingTimestamps = new uint[](length);
uint[] memory _lastClaimedTimeStamps = new uint[](length);
uint[] memory _stakedTokens = new uint[](length);

for (uint i = startIndex; i < endIndex; i = i.add(1)) {
address staker = holders.at(i);
uint listIndex = i.sub(startIndex);
_stakers[listIndex] = staker;
_stakingTimestamps[listIndex] = depositTime[staker];
_lastClaimedTimeStamps[listIndex] = lastClaimedTime[staker];
_stakedTokens[listIndex] = depositedTokens[staker];
}

return (_stakers, _stakingTimestamps, _lastClaimedTimeStamps, _stakedTokens);
}

Our developers have worked day and night. We also hired a Blockchain company (they prefer to remain anonymous) to complete the DYP Staking before the 8th of November. However, this is unfortunately impossible; it requires a lot of work to complete it. Expected delivery date: November 30, 2020, + 7–14 days for security audit of the DYP Staking smart contracts. We do not want to launch it and risk investors’ funds without a security audit!

We know that we scheduled the listing + adding liquidity on Uniswap for the 8th of November. However, after running some analysis, we come to the following conclusion: If we add the liquidity on Uniswap without a working product (the DYP Staking), most of the investors will sell the tokens for a small profit; this is not good for the project in the long term.

DeFi Yield Protocol is a governance token, which means DYP tokens represent voting shares in DeFi Yield Protocol governance. The community and investors are important to us. Thus, the decision to add the liquidity on Uniswap without the DYP Staking will only belong to our investors who bought DYP tokens until the 8th of November 1 p.m. UTC. That being said, we have the following two options for our community:

1. Add the liquidity on Uniswap immediately after the vote is over (the vote will last for 24 hours, or until we reach 50%+ votes for one proposal).
2. Extend the crowdsale until the DYP Staking + security audit is ready for use for all smart contracts from the DYP Staking (Expected delivery date: November 30, 2020, + 7–14 days for the security audit) + a 10% BONUS for all the investors who bought DYP until the 8th of November 1 p.m. UTC. You should understand that if we manage to raise more funds, we will also be able to add more liquidity to the Uniswap listing (the higher the liquidity, the better for the project and investors).
If you decide to extend the Crowdsale, it will be structured as follows: Considering that we managed to sell 561,246 DYP tokens in 13 days, we will have three mandatory rounds and one extra round:

Round 1–150,000 DYP tokens allocated
1 DYP = $2.00

Round 2–150,000 DYP tokens allocated
1 DYP = $2.15

Round 3–150,000 DYP tokens allocated
1 DYP = $2.30

Round 4–4,000,000 DYP tokens allocated
1 DYP = $2.50

Only the first three rounds are mandatory; the fourth round will only start if the first three rounds are already sold before the DYP stake is ready (release date: the 30th of November + 7–14 days for the security audit). In case the crowdsale is extended, once the three mandatory rounds are completed/or in case the three rounds are sold, and the fourth round also starts, when the DYP stake is ready, the crowdsale will automatically end.
Once the crowdsale ends, our team will need six hours to burn all unsold tokens, distribute the contribution bonus, and rework the tokenomics. This can only be done after knowing the exact number of tokens sold. Why do we need to rework the tokenomics? Here is an example: We had 69,120 DYP rewards per day for the DYP-ETH pool. However, this might be the case if we sell 5,000,000 tokens. We cannot give 69,120 DYP rewards per day for one pool because the liquidity will not be sufficient. The rewards will never be distributed because we have the Uniswap Integration to calculate slippage and swap with appropriate slippage tolerance (–2.5%)
That being said, the liquidity will be added on Uniswap six hours after the crowdsale ends.

To cast your vote, please visit https://gov.dyp.finance/. If you decide to add the liquidity on Uniswap in 24 hours, you need to choose A. If you want to extend the crowdsale until the DYP stake is ready, you need to choose B. Please note that voting will last for 24 hours to ensure all token holders to vote, or until we reach 50%+ votes for one proposal.