Yield farming is undoubtedly taking over the DeFi space since more crypto users have finally realized its merits. DeFi projects are in development as time provides users with diverse income earning services ranging from holding to exchanging or lending digital assets.
On that note, Ethereum plays an essential part in establishing and growing most of these tokens with top-notch features like smart contract advancements. The DeFi Yield Protocol (DYP) joins the community facilitating numerous functionalities under one roof. As it launches on December 15th, DYP plans to revolutionize the yielding investment sector and bring in as many investors as possible.
Whale manipulation has been a hand-in-hand concern of the growing DeFi space. A popular example came with SushiSwap – the DEX that was supposed to replace Uniswap. Its creator withdrew millions worth of tokens, essentially crashing the price of SUSHI to the ground.
This activity lowers the price of the remaining tokens in circulation adversely. DYP employs an anti-manipulation feature that swaps the liquidity rewards from DYP to ETH to avoid this unfortunate event.
The rewards converted are from the DYP token pools the platform supports, including DYP/USDT, DYP/USDC, DYP/ETH, and DYP/WBTC. Afterward, liquidity rewards are evenly allocated to liquidity providers. The move by DYP guarantees investors that no crypto whale will take over the token, thus ensuring utmost transparency.
Smart Contract Technology
Smart contracts are basically self-executing codes that perform transactions under conditions pre-set by their developer.
DYP runs on Ethereum-based smart contracts, enabling investors to take part in yield farming, an incentivized way of earning crypto by holding funds in a liquidity pool. Similar to other DeFi projects, DYP leverages Ethereum’s technology to maintain the ecosystem’s functionalities.
However, smart contracts are still in danger of bugs, oftentimes caused by a human error, as was the case with YAM Protocol. At DYP, venture capitalists don’t have anything to worry about because the DeFi platform conducts regular auditing procedures on the codes and contracts.
Auditing makes sure the contracts run smoothly while safeguarding investors from security threats arising from the bugs. Daily, the smart contract automatically exchanges the DYP tokens to ETH at 00.00 UTC.
This means that if the token’s price fluctuates beyond 2.5%, the unaffected DYP is exchanged to ETH while the remaining amount is allocated as rewards for the following day. After seven days, left-over tokens are either burnt or supplied to token holders based on the decisions of the DYP governance system.
Mining Pools and Integrated Earning Vaults
The DYP team has engaged with Ethereum mining since 2017, accumulating a diverse knowledge of blockchain technology. To accelerate the growth of DYP, it hopes to distribute five million tokens to attract more investors to onboard the pool.
Furthermore, DYP offers a monthly 10% bonus for Ethereum miners who participate in the DYP mining pool. An automatic earning vault thereafter supplies 75% of profits to the liquidity providers, whereas the remaining 25% regulates the token’s price by re-purchasing DYP.
Token Allocation and How to Participate in the Crowdsale
Crowdsales mainly aim at attracting mainstream investors to join the DYP community as it builds its foundation from scratch. The first pre-sale was productive as the DeFi-based platform managed to sell 570,000 tokens.
The maximum distribution of DYP across the market is 30 million, which apportions 75.3% to the public, 8.03% to the team, and investors get the remaining 16.67%. To receive the tokens, users need to make a minimum and maximum purchase of 0.5 ETH and 100 ETH, respectively, onto the crowd sale address.
Moreover, the crowd sale process will take place in four rounds, each carrying prices ranging from $2 to $2.50 per token. The first three rounds take place continuously once each round sells out all its tokens.
The fourth round kicks in only after the first three rounds complete their sale process before the DYP stake is set. To avoid inconveniences, investors are urged to use a digital wallet compatible with ERC-20 tokens such as Trust Wallet and Metamask.
DYP’s method of stabilizing the token’s prices makes it stand out among other DeFi protocols.
The platform also committed an amount exceeding $1 million on its mining farm to clearly observe the trader’s needs. Additionally, DYP operates with prominent programming languages, including Bootstrap, HTML5, and Ethereum Solidity Protocol.
Furthermore, the protocol is designed to protect investors from dumps as it applies the anti-manipulation feature to eliminate crafty whales.