Within the rapidly budding cryptocurrency industry, 2020 has undoubtedly been the year of decentralized finance (DeFi) and the DeFi Yield Protocol is committed to take DeFi new heights.
What Is the DeFi Yield Protocol?
The DeFi Yield Protocol (DYP) is developing a cutting-edge unique platform that enables anyone to provide liquidity and be rewarded for the first time in Ethereum (ETH). Simultaneously, the platform maintains both token price stability and secure and easy-to-use DeFi for end users by integrating DYP anti-manipulation feature.
DYP is unique in that it brings a solution to the risks associated with Yield Farming. The protocol does this by permanently changing the way an investor earns by providing liquidity on Ethereum smart contract.
There is an argument against DeFi which states that it gives whales the power to control the underlying network. To get an idea, look no further than the recent infamous Sushiswap dump where the anonymous founder, chef Nomi swapped his SUSHI tokens for Ethereum, resulting in a flash crash for the token.
DYP fixes this.
The DYP anti-manipulation feature ensures that all pools (DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC POOL) rewards are automatically converted from DYP to ETH at 00:00 UTC, and the system automatically distributes the rewards to the liquidity providers. As you might have figured out by now, this feature ensures that all network participants are at an equal footing. It essentially disables any whale from manipulating the price of DYP for their benefit.
How Does DYP Ensure Fair Network Participation?
To substantiate the finer details of the DYP, every day at 00:00 UTC, the smart contract will automatically try to convert the DYP rewards to ETH. Should the DYP price be affected by more than -2.5%, then the maximum DYP price that does not affect the price will be swapped for ETH while the left over amount would be distributed in the next day’s rewards.
Subsequently, if after seven days there are still undistributed DYP rewards, the DeFi Yield Protocol (DYP) governance will vote on whether the remaining DYP will be distributed to the token holders or burned permanently. For the uninitiated, when a token is burned, it is removed from circulation permanently which creates a supply shock and usually leads to price appreciation of the token.
It is worth noting that DYP takes special care risks associated with smart contracts. Undoubtedly, smart contracts are the backbone of any DeFi project and it is of utmost significance that they are aptly taken care of.
To mitigate such risks, DYP has audited all its smart contracts by PeckShield and Blockchain Consilium. DYP understands how haywire things can go with unaudited or poorly designed smart contracts. Take the recent YAM finance disaster for example. The team discovered a bug that prevented a vote from being executed. This made YAM token holders dump the tokens leading to its dramatic price plunge overnight. DYP takes care of this by ensuring all its smart contracts are duly audited and its codes secured from participants who try to take advantage of the protocol.
Other Benefits of Holding DYP Token
In addition to the aforementioned unparalleled benefits of holding the DYP token, the holders also get to participate in DYP governance and vote to add additional liquidity mining pools, burn tokens, DYP toward grants, strategic partnerships, governance initiatives, and other similar protocol governance decisions. Remember, all DYP liquidity pools use the anti-manipulation feature with the 2.5% slippage.
Users can buy DYP token from Uniswap here.
Liquidity has been added on Uniswap and locked for 1 year with UniCrypt.