Decentralized Finance has revolutionized the cryptocurrency industry. Developers and project teams have shaped what is becoming the financial future of self-money management, yield farming and financial economics well past traditional cryptocurrency trading. Opening doors to economical avenues that were not available to the average cryptocurrency user and the world. The iYield team plans to bring to market these avenues to the masses of the cryptocurrency community. We seek mass adoption, coupled with extreme longevity to become the largest Decentralized Finance yield aggregator in the space. We will achieve this with some of the highest professionals in the industry, alongside of our partners.
Yield Bank has set out to create an ecosystem that will yield the highest yet safest yields an individual user can achieve. To give insight to our plans, we plan to offer a native token that allows access into our ecosystem. The token is a deflationary token with properties not quite seen in the market before. Its liquidity provided is irrevocable through its smart contracts. Thus creating a Liquid Level (LL) — a key level created to assist market price decomposition. This creates a new marketplace for its derivative — the LP Token. This process will stabilize market pricing while creating a higher market value, in addition to offering passive income to the Infinitely Locked Liquidity (ILL) provider. This will allow for staking on our Yield Bank platform, in conjunction as registration to an individual account propriety to the user (more on individual account propriety later).
Our native Token yB, when staked, will produce monetary rewards of our associated Token yCASH on open markets backed by our liquidity pools chosen from our data driven research. Token yCASH, also a deflationary token will act as our staking rewards token from Token yB. Token yB represents the key to our entire ecosystem as without it, you will not be a participant in our platform.
Users holding our platform token, yB, will be issued an internal account number. This account number will provide the user access to the Yield Bank platform. Inside the user’s interface the user will have everything they need under one roof. Users will have the ability to stake, trade LPs, lock-up in our vaults, save for retirement in our 401K accounts, swap coins with an internal AMM, generate, view, and print detailed statements of all the user’s transactions of their account.
These statements will show balances, profits, gas fees, transaction fees, assets allocated and more. This gives the users complete understanding of their financial situation without juggling between different platforms and the ability to adjust asset allocations into a variety of our offered products for greater yields.
We are launching a marketing campaign to build our user base and community in a slow, procedural and organic manner. We have a set of articles in the pipeline that will further reveal the full scope of our project leading up to the ILL Episode as well as a complete whitepaper.
Follow us on any of our social media accounts to stay updated. ILL Episode date will be announced in the coming weeks.
The article and any other associated content of Yield Bank does not constitute as financial advice. Cryptocurrencies are a high risk investment and may not be suitable for all members of the public and all types of investors. This is an experiment in DeFi yield aggregating to bring longer and steadier yields to its users.
Uniswap relies on external arbitrage to keep the price of the Uniswap trading pairs in-check with the rest of the market.
Liquidity Pools
Centralized exchanges rely on market makers to provide sufficient liquidity — that much we have established. So how do AMMs execute trades? In other words, what or who “makes” the market for an AMM-based decentralized exchange? The same way centralized exchanges rely on market makers for liquidity, AMMs rely on liquidity pools for liquidity.
For ease of understanding, you could visualize a liquidity pool as an actual swimming pool that people as a collective pour their money into instead of water. People who pour their money into this pool are called liquidity providers.
But what incentive do they have to pour their money into this pool? For each trade that happens using that pool as liquidity to execute the trade, a percentage-based fee is charged to the person interacting with the AMM smart contract. This fee is then distributed to all liquidity providers proportionally based on how much liquidity they are overall providing compared to the size of the rest of the pool.
A practical, simplified example:
If the liquidity pool is worth 92 USD, and you go and put 8 USD in, the total value of the pool is now 100 USD and you own 8% of that pool’s liquidity. As a result you would get awarded 8% of fees that this pool makes — if the pool over a certain period of time made 5 USD in fees, you would get 8% of that 5 USD as rewards — this is called liquidity mining. This is of course all very simplified as different AMMs and protocols might offer a different fee / reward structure as well as different terms of use. In the case of Uniswap, 0.3% of all trade volume is charged as a fee and then is distributed proportionally to all liquidity providers. By default, these fees are put back into the liquidity pool, but can be collected at any time.
Yield Bank’s ecosystem will have a wide variety of highly liquid pools where our yCASH pools will be supporting our yB pools, overall stabilizing our ecosystem with Yield Bank’s liquidity pools seamlessly looped into each other, providing stable yields to our users for many years to come.
When you put your money into a liquidity pool thus becoming a liquidity provider, you are in return given LP tokens. You could think of this LP token as a sort of IOU coupon that you can at any time exchange back for the money you put into the liquidity pool. In essence, the amount of LP tokens you were given represents the value of the money you put into the pool.
Yield Bank’s ecosystem will have a wide variety of highly liquid pools where our yCASH pools will be supporting our yB pools, overall stabilizing our ecosystem with Yield Bank’s liquidity pools seamlessly looped into each other, providing stable yields to our users for many years to come.
When you put your money into a liquidity pool thus becoming a liquidity provider, you are in return given LP tokens. You could think of this LP token as a sort of IOU coupon that you can at any time exchange back for the money you put into the liquidity pool. In essence, the amount of LP tokens you were given represents the value of the money you put into the pool.
Uniswap LP tokens
So now we know that when you put your money into this pool, you are earning a fee on every trade that is executed through this pool’s liquidity (of which you own a part).
Wait a minute. I put my money into this pool in exchange for passive income, and now it’s gone forever? Well, it depends.
Uniswap LP tokens are minted when a user joins the pool and burned to withdraw from the pool. The rate at which they are minted and burned is such that you will always be able to withdraw your proportional contribution and your proportional share of each fee since you joined.
Yield Bank LP tokens
Yield Bank’s model, based on CORE’s base functions, is such that you cannot exchange your LP tokens back for the money you put in i.e. the liquidity you provided.
Once you put your money into a pool, that money is locked there forever. The LP token you have received when you initially put your money into the pool is now used to represent the value of the money you put into the pool as well as the passive income potential the LP token has. In essence, the LP represents the monetary value of the liquidity you provided and you use and trade the LP tokens instead.
Once you put your money into a pool, that money is locked there forever. The LP token you have received when you initially put your money into the pool is now used to represent the value of the money you put into the pool as well as the passive income potential the LP token has. In essence, the LP represents the monetary value of the liquidity you provided and you use and trade the LP tokens instead.
Trading LP tokens
This is where Yield Bank comes in. We will create a market for LP tokens on our platform. A much more varied, accessible and liquid market for LP tokens than ever available before in DeFi backed by our liquidity pools, the sheer size of our platform and its volume. By locking the liquidity in our pools forever, we are creating a positive feedback loop of ever-increasing liquidity — liquidity can only increase with time and never decrease.
This will, in conjunction with the elaborate deflationary mechanics both of our tokens have, create a positive feedback loop of always increasing the liquidity in our pools, therefore rising prices of our tokens, therefore increased interest in our platform which in turn results in new users buying our tokens to enter our ecosystem (and pushing the price upwards) and putting that money into our pools once again increasing liquidity — thus the said positive feedback loop is achieved. Our ecosystem is bound to establish itself within the top ranks of DeFi and this is just one of many reasons why it will do so.
Follow us on any of our social media accounts listed below to stay updated. Liquidity Episode date will be announced in the coming weeks.
The article and any other associated content of Yield Bank does not constitute as financial advice. Cryptocurrencies are a high risk investment and may not be suitable for all members of the public and all types of investors. This is an experiment in DeFi yield aggregating to bring longer and steadier yields to its users.
Web: http://yieldbank.finance/
Whitepaper: http://yieldbank.finance/mt-content/uploads/2020/10/yb_whitepaper_lite.pdf
Twitter: https://twitter.com/yieldbank
Telegram: https://t.me/yieldbank
Medium: https://medium.com/@YieldBank/introducing-iyield-yield-bank-af745a661b0
_________________________________________________________________
Profile:
Bitcointalk username: dwinrs
Bitcointalk url: https://bitcointalk.org/index.php?action=profile;u=1196948
Eth Address: 0xdD3D0bB3dc3Ec2dA19cb839De1FB47d8D39aaf41
Whitepaper: http://yieldbank.finance/mt-content/uploads/2020/10/yb_whitepaper_lite.pdf
Twitter: https://twitter.com/yieldbank
Telegram: https://t.me/yieldbank
Medium: https://medium.com/@YieldBank/introducing-iyield-yield-bank-af745a661b0
_________________________________________________________________
Profile:
Bitcointalk username: dwinrs
Bitcointalk url: https://bitcointalk.org/index.php?action=profile;u=1196948
Eth Address: 0xdD3D0bB3dc3Ec2dA19cb839De1FB47d8D39aaf41
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