Decentralized backed DeFi index
dYEL is a high-liquidity asset backed DeFi index with multichain approach, available for trading, speculations and arbitrage while remaining the minimum value programmed by underlying assets of the treasuries.
The overall approach is simple, dYEL shall become a decentralized index that represents the DeFi trends, while creating additional value to the protocols on various chains. The growth of the DeFi space will trigger the positive dynamics of dYEL price, in the same time dYEL will help the whole DeFi to grow faster and at a more stable rate.
Further in this article we will explain all economics and features of the BIG, BANG and dYEL.
Concepts and value
As said before, dYEL will be an index token, backed by various assets on multiple chains.
To begin, it will be available on Ethereum, Binance Smart Chain, Fantom, Polygon and Avalanche.
The basket of assets backing the index will be stable coins as well as LPs of leading protocols on every network. Hence, dYEL will accumulate the multichain power of DeFi space while diversifying the backing for it.
The fact of diversified treasuries and accumulation of LP tokens positively contributes to the protocols and networks, due to fact that any dYEL holder will be locking the assets in the treasuries, hence decreasing sell pressure for them, while generating for TVL for the Network.
By holding dYEL you are basically holding:
- a part of every DeFi network
- a part of leading protocols
- a part of stable coins treasuries
- a part of protocol’s revenue
Why dYEL is different from ponzi DAOs?
The majority of decentralized currencies are introducing a bonding model to build up the treasuries for limitless emission tokens. Disproportion of liquidity depth, treasuries growth and excessive demand results in tokens being traded at 20x from the backing price, while the backing itself depreciates due to emissions.
In the scenario of dYEL, treasuries will be backing fixed emission token, hence the backing will be sustainable. In the meantime there is still space for free trades and speculation of the BIG tokens. On top of that, the assets within the treasuries are following the market dynamics and are diversified due to multichain compatibility, what makes dYEL a true index of the DeFi.
All the mechanics are constructed the way, dYEL holders will be benefiting from treasuries revenues and growth over time while not experiencing huge volatility, but rather an organic growth and fair backing.
Despite the organic growth of DeFi space and passive increase in value of assets, treasuries will have a strong utilization approach that will positively affect the backing price of the index.
LPs themselve — earn fees from swaps, hence organically growing in value. Nevertheless, there is additional utilization from performing the farming activities for incentivization rewards that will be added to the treasuries, hence growing them.
Stable coins will be used as a liquidity provision for leveraged farming via Equilibrium protocol on other stable pairs and more risky farms. Liquidations will be programmed, hence depegs and market shifts won’t affect the treasuries and protocol will not lose value in that scenario. Therefore, the stable coin part of the treasuries is expected to grow dynamically due to performance fees on capital provision in a compounded way.
Treasury management will always be a subject of the community vote and YEL holders will always make decisions. We as a team will provide the initial ways of utilization, however will not perform any “merges or acquisitions” without DAO’s approval.
Here is the most interesting part of token economies that combines game theory and indexed economies.
dYEL will be a product of wrapping BANG tokens. BANG tokens can be obtained from staking your BIG tokens.
BIG tokens can be acquired from bonding through discounted rates or simply purchased on the DEX.
Any bonding process will be growing the treasuries, because users swap required assets for the bond of getting x amount of BIG tokens.
BIG price is determined organically by the market and emissions of the BIG and BANG tokens will be automatically determined by the value staked to maintain APY returns.
Hence, this is a game theory part.
Nevertheless, dYEL emission is limited and the only thing that may change is the amount of BANG tokens within 1 dYEL.
Treasuries will be backing dYEL, hence supporting the index value, while price of BIG and BANG tokens are likely to affect dYEL price too because of interconnectivity of the assets.
Mechanics will be performing the market making activity to make sure treasuries are benefiting from any excessive demand for BIG tokens, hence preventing overhead purchases and making sure treasuries value is growing so backing per dYEL catches up.
With such model dYEL will become a backed index while remaining the organic market speculative interest due to independent BIG price.
There will be an original pre-mint of BIG tokens for providing initial liquidity on the decentralized exchanges. From that point any additional emissions of BIG tokens will be done only through bonding and staking rewards.
BANG tokens will not have any pre-mints and cannot be produced from bonding. The emission of BANG tokens is programmed as a rebase token that is minted to the user at the moment of staking BIG token. BANG tokens emission grows as well as BIG tokens from staking activity. Both emissions are unlimited.
dYEL emission is limited and fixed. dYEL index token can be obtained only through wrapping BANG tokens.
There is no Token Sale, Pre-sale, airdrops or any other events, so please ignore any scam attempts.
DAO’s profit generated from bonding will be allocated to growth of the treasuries, partnerships, collaborations, marketing, development and team. The largest portion definitely will be distributed to the treasuries.
YEL and dYEL
dYEL is an independent index token introduced by YEL Finance DAO and shall be considered as a part of YEL ecosystem.
YEL token will remain a governance token for dYEL proposals and votes.
Hence, there will be several interaction between protocols within one ecosystem:
- Governance via YEL
- Mixed protocol liquidity through dYEL and YEL bonding
- Utilization of the portion from stable coins treasuries for leveraging through Equilibrium
3.1 Treasuries will still benefit from the fees on capital provided
3.2 Equilibrium remains earning fees from farming rewards
4. TVL valuation of the protocol and other statistics.