This article aims to provide some details about DeFi Yield Protocol Tokenomics, DYP Earn Vault, and Community Governance:
DYP contract address: 0x961C8c0B1aaD0c0b10a51FeF6a867E3091BCef17
75.30% of the DeFi Yield Protocol (DYP) genesis supply is allocated to DeFi Yield Protocol community members.
DYP will be available through four liquidity mining pools: DYP-ETH, DYP-USDC, DYP-USDT, and DYP-WBTC.
30,000,000 DYP have been minted at genesis and will become accessible over the course of 2 years. The two-year allocation is as follows:
75.30% to DeFi Yield Protocol community members 22,588,800 DYP divided as follows:
12,000,000 DYP distributed for pool rewards over the next 12 months
5,000,000 DYP distributed to Ethereum mining pool after launch (Q1/2021)
4,488,800 DYP reserved for other staking pools
1,000,000 DYP locked for one year to Uniswap liquidity on token launch (Q4/2020)
8.03% to team members and future employees 2,411,200 DYP vested for 24 months, released monthly
16.67% to investors 5,000,000 DYP:
4,348,469 BURNED and REMOVED from the total supply https://etherscan.io/tx/0x69d1faef4d41752c200dfe68b103c2823f94f225c502b455321bae0d94ebf8a5
No Additional Tokens Can Be Minted
An initial staking program will go live in December 2020. The initial program will run until December 2021 and target the following four pools on DeFi Yield Protocol:
3,000,000 DYP will be allocated per pool to LPs proportional to liquidity, which roughly converts to 250,000 DYP per pool per month.
At the same time, governance will be launched, DYP tokens will represent voting shares in DeFi Yield Protocol governance. The introduction of DYP tokens serves this purpose and enables shared community ownership and a vibrant, diverse, and dedicated governance system, which will actively guide the protocol toward the future.
DYP holders through governance can vote to add more liquidity mining pools, burn tokens, or allocate DYP toward grants, strategic partnerships, governance initiatives, and other programs.
DYP Earn Vault
The DYP Earn Vault is an automated yield farming contract that allows users to deposit a particular token, for which the protocol automates yield farming strategies by moving providers funds between the most profitable platforms. Of the profits, 75% is converted to ETH and distributed to the liquidity providers, while the remaining 25% is used to buy back our protocol governance token in order to add liquidity and mantain token price stability.
Let’s look at the following example: You own 10 ETH and add liquidity to the DYP-ETH earn vault pool. Our contract will move the pool funds to the most profitable platform from that day on and let’s say they will earn 20% (2 ETH) on that day. We will use 25% to buy back our protocol token to add liquidity and maintain token price stability, which means you will receive a 1.5 ETH reward (75% from the profit). Thus, in just 24 hours, you have successfully deposited your funds (10 ETH) to the DYP-ETH earn vault pool and you have made a profit of 1.5 ETH (the contract will automatically distribute the reward to you).
This article aimed to share some details about DeFi yield protocol tokenomics and some information about earn vault and community governance.