DeFi Yield Protocol: Everything You Need To Know For 2021
Decentralized Finance (DeFi) has become a critical subset of the cryptocurrency and blockchain space, one that mimics the products and services offered by traditional banks, such as borrowing and lending, but without the need for a third party.
Without a bank, DeFi protocol users can provide liquidity and earn a yield in rewards. As the sector grows, new protocols have sprouted up that build upon the existing benefits offered and push innovation forward.
Here’s how DeFi Yield Protocol aims to revolutionize digital finance. Also mentioned are the details on the milestones the project has already achieved.
What Is DeFi Yield Protocol?
As important as institutional interest has been in Bitcoin for reigniting interest in the overall cryptocurrency industry, nothing has been more crucial to the industry’s growth and reemergence than decentralized finance.
DeFi has become so disruptive so quickly, it has even made its way on Wheel of Fortune recently. The sub-sector of altcoin tokens is also responsible for Ethereum’s enormous growth.
New projects have emerged that offer a wealth of featured or benefits for investors and holders, such as earning rewards through staking.
DeFi Yield Protocol (DYP) is a decentralized finance protocol that brings to the market a new and exciting way to earn Ethereum rewards directly for providing liquidity.
Earning ETH Rewards With DYP
Crypto holders can begin earning ETH rewards immediately by utilizing MetaMask or another Ethereum wallet to deposit liquidity provider tokens into one of the four unique liquidity provider pools available, including DYP-ETH, DYP-WBTC, DYP-USDC, and DYP-USDT.
Staking options vary pool-by-pool, and rewards range from 30,000 DYP to 100,000 DYP monthly. More DYP can be earned by locking liquidity is locked each pool. Lockup tames stretch from only three days to up to 90 days for the largest yield.
DeFi Yield Protocol also offers fixed DYP rewards farming, with daily rewards being offered to start at 20% APR to as high as 35% APR. Lockup timeframes range from 30 to 120 days. To begin earning fixed DYP rewards, one of the same four liquidity provider tokens must be deposited into the corresponding pool. Users can also re-invest earned rewards back into the staking pool for an even larger ROI.
What makes DeFi Yield Protocol especially attractive is the platform’s anti-manipulation feature. High wealth whales often take advantage of DeFi protocols and exploit DYP liquidity for personal gain. The protocol automatically safeguards liquidity providers by converting all pool rewards from DYP to ETH each day. ETH is then wrapped and distributed to liquidity providers.
Milestone 116 ETH Rewards Earned In Under 24 Hours, More Tools On The Way
The unique functionality and anti-manipulation feature have led to a milestone of $63 million in Total Value Locked and over 2,369 ETH paid to liquidity providers. A recent one-day record totaled as much as 116 ETH in rewards earned in just 24 hours.
DeFi Yield Protocol also pledges to introduce additional features, such as the DYP Earn Vault and DYP Tools. The DYP Earn Vault automates yield farming contracts to maximize returns. Provider liquidity is moved through the most profitable platforms to ensure a high ROI. Then, earnings are distributed as a 75/25 split going towards liquidity providers and DYP buyback. Support will be offered for ETH, USDC, USDT, DAI, and WBTC in five different lockup durations.
Uniswap integration will later be introduced to auto-buy DYP tokens to burn. The 25% of fees generated through the Earn Vault will be sent to a token burn address at regularly scheduled intervals, lowering overall supply and adding to the token’s long-term value.
DYP Tools are also coming in Q1 2021, able to pull up-to-date and accurate data from any liquidity provider or decentralized exchange platform. Utilizing the data along with other sources like Etherescan, DeFi investors can make better decisions regarding their positions.
The toolset also allows users to view and explore Uniswap pools and pairs and access real-time price charts and info. Using the data, DYP will assign a Decentralized Trust Score, awarding a higher score to protocols that have a visible team behind the project, among other vital factors.
Trust is central to DYP, and a Community Trust feature will allow the platform’s users and liquidity providers to vote on various issues and developments related to the future of the protocol. More features have been promised but yet to be revealed.
Why DYP Matters
DeFi Yield Protocol essentially encompasses everything that makes the DeFi sector so special, all in one protocol. Added benefits such as the anti-manipulation feature allow the project to stand out in the currently trending category of crypto assets.
To learn more about DeFi Yield Protocol and its unique take on providing ETH rewards, visit this link.
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