The purpose of this article is to show you why DYP is unique and better than most of the Decentralized Finance (DeFi) projects:
DYP is backed by an Ethereum Mining Farm with a 35 GH/s hash rate. What does this exactly mean? Based on Ethereum mining difficulty and gas price, we earn between 65 ETH — 150 ETH every month. We have invested more than 1 million dollars in our mining farm to ensure that we understand the needs of the community, and we are here for long-term goals. All earnings from our mining activity go to DYP directly. You can check the following Ethereum Miner address to ensure that DYP token (DYP token contract 0x961C8c0B1aaD0c0b10a51FeF6a867E3091BCef17) was created by us: https://ethminer.dyp.finance/. Although DeFi stands for decentralized finance, we chose to create DYP contract with our Ethereum Miner address to share some information about us with our community. Now, let’s quickly discuss our vision and mission regarding DYP to show you why DYP is much better than similar projects: Everyone has heard of Uniswap and SushiSwap (SUSHI). SushiSwap is a fork from Uniswap that rewards users with a native token called SUSHI. The problem is that the big liquidity providers, called whales, are getting a crazy reward in SUSHI in a short time, and they all sell the tokens they get for free. Thus, the price decreases, and it affects the small liquidity providers. In some cases, investors lost more than 50% in less than 24 hours.
How is DYP different and why this cannot happen if you choose DYP to provide your liquidity?
To reduce 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 the smart contract will automatically attempt to convert the DYP rewards to ETH every day at 00:00 UTC. 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 we still have undistributed DYP rewards, the DeFi yield protocol governance will vote on whether the remaining DYP will be distributed to the token holders or burned (all burned tokens are removed from circulation). Let’s look at the following example: You own 1000 DYP at a market price of $2000 if 1 DYP is $2, and you add liquidity to the DYP-ETH pool that offers a reward of 250,000 DYP per month. That means you will add 1000 DYP and 5.71 ETH if ETH price is $350. If your liquidity represents 1% of the pool, it means you will receive a reward of 2500 DYP tokens per month. To maintain the token price stability, you are not allowed to swap 2500 DYP reward for ETH; instead, our smart contract will automatically swap the DYP reward for you and distribute the ETH to your assigned address. If the DYP price is affected by more than 2.5%, then the maximum amount of DYP that does not affect the price will be swapped to ETH and distributed to your assigned address.
After seven days, if we still have not distributed DYP rewards, the DeFi yield protocol governance (the community) will vote on whether the remaining DYP will be distributed to the token holders or will be burned. With this unique mechanism for distributing the rewards to the liquidity providers, both investors and token price are protected against loss of money and price. This article aimed to share our vision of DYP liquidity mining and some information about our team and aimed to show our readers why you should trust us. In the following articles, we will discuss more about Ethereum mining pool and yield farming for miners, which is the next core feature of DYP for the token to achieve long-term profitability.