💡 What Is Yield Farming in Decentralized Finance?
Yield farming is a way to make more crypto with your crypto. It involves you lending your funds to others through the magic of computer programs called smart contracts. In return for your service, you earn fees in the form of cryptocurrency. Simple enough, huh? Well, not so fast.
Yield farmers use quite complicated strategies. They are constantly moving their cryptos around between different lending marketplaces to maximize returns. They are also quite secretive about the best yield farming strategies. Why? The more people know about a strategy, the less effective it may become. Yield farming is the wild west of decentralized finance (DeFi), where farmers compete to get a chance to farm the best crops.
⚠️ The Risks of Yield Farming
Yield farming is not simple as it may appear. The most profitable yield farming strategies are highly complex and recommended only for advanced users. In addition, yield farming is generally more suited to those who have a lot of capital to deploy. If you do not understand what you are doing, you will likely lose money.
One obvious risk of yield farming is smart contracts. Due to the nature of DeFi, many protocols are built and developed by small teams with limited budgets. This can increase the risk of smart contract bugs. Another risk relates to the crazy APR % that some of these offer in the first few days. Unfortunately, many users fail to take into account the possible risks involved (Yolo-farming).
The DeFi Yield protocol (DYP) aims to resolve these problems by developing a platform that allows anyone to provide liquidity and to be rewarded for the first time with Ethereum. At the same time, the platform maintains both token price stability as well as secure and simplified DeFi for end users by integrating a DYP anti-manipulation feature. The project begins with four phases:
💧 DYP Staking Pools and Reward Distribution
To start providing liquidity and earning ETH rewards, you need to deposit your liquidity provider tokens (Uniswap LP tokens) into the corresponding initial list of pools:
DYP-ETH Pool Reward 250.000 DYP / month
DYP-USDC Pool Reward 250.000 DYP / month
DYP-USDT Pool Reward 250.000 DYP / month
DYP-WBTC Pool Reward 250.000 DYP / month
Once that is done, you will start earning DYP, the DeFi Yield protocol governance token.
In order to lower the risk of DYP price volatility, all pool rewards are automatically converted from DYP to ETH by the smart contract at 00:00 UTC, and ETH is distributed as a reward to the liquidity providers.
Maintaining token price stability — every day at 00:00 UTC, the smart contract will automatically try to convert the DYP rewards to ETH. If the DYP price is affected by more than -2.5%, then the maximum DYP amount that does not affect the price will be swapped to ETH, with the remaining amount distributed in the next day’s rewards. After seven days, if there are still undistributed DYP rewards, the DeFi Yield protocol governance will vote on whether the remaining DYP will be distributed to the token holders or burned, which removes them from circulation.
👨🌾 Ethereum Mining Pool and Yield Farming
Ethereum mining pool & yield farming for miners is the next core feature of DYP for the token to achieve long-term profitability.
DYP Ethereum Miner Address https://ethminer.dyp.finance/
What is this? This is our Ethereum Miner address. The DYP team has been mining Ethereum since 2017, and now we are ready to help the Ethereum Mining Community with our Ethereum mining pool combined with yield farming. We invested more than $1 million dollars in our Mining Farm, so you can be sure that we understand the community’s needs.
Every Ethereum Miner address that interacts with our smart contract will get a 10% monthly bonus of the ETH monthly income earned. Let’s say the ETH price is $600, the DYP price is $2, and your monthly estimated earnings are 1 ETH — in this scenario, you would get a monthly airdrop of 30 DYP tokens worth $60. This does not stop here; in order to claim your monthly DYP token airdrop, you will first need to join our Ethereum mining pool with 0% fees, meaning you will also earn more ETH monthly!
The Ethereum mining pool & yield farming for miners will provide a 10% monthly DYP bonus + 0% mining fees to all Ethereum miners. The Ethereum mining pool will be launched as soon as we reach the Hashrate required to mine a pool. We currently have 35 GH/s hash rate from our miners, but the required hash rate is 250 GH/s.
💸 DYP Earn
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.
DYP tokens represent voting shares in DeFi Yield protocol governance. The introduction of DYP tokens serves this purpose, enabling 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 pools, burn tokens, or allocate DYP toward grants, strategic partnerships, governance initiatives, and other programs.
💸 DYP Referral Program
Should you refer DYP to your friends, 5% of your friends’ rewards will be automatically sent to you whenever your friends stake DYP. You do not need to stake, it’s automatically sent to you, free of gas fee.
🎨 About DeFi Yield Protocol (DYP)
DYP contract address: 0x961C8c0B1aaD0c0b10a51FeF6a867E3091BCef17
30,000,000 DYP have been minted at genesis and will become accessible over the course of two years. The 2-year allocation is as follows:
75.29% to DeFi Yield protocol community members: 22,588,800 DYP
12,000,000 DYP distributed for pool rewards over the next 12 months
5,000,000 DYP distributed to the Ethereum mining pool over the next 6-12 months
4,488,800 DYP reserved for other staking pools
1,000,000 DYP locked for one year to Uniswap liquidity on token launch
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
DYP was created with the help of several developers who have had experience with Ethereum Mining since 2017, https://ethminer.dyp.finance/. Over time, complete control of the token and its functions will be handed over to the token holders involved in the project.