BlockTalks x DeFi Yield Protocol (DYP) AMA Transcript!
Hello! BlockTalkers & Blockchain Enthusiastic!
We recently hosted an AMA with DeFi Yield Protocol (DYP), on November 19th at 01.00 PM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Teki Kolaneci , Digital Strategy Manager at DYP ,so here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.
INTRODUCTION
Teki — My name is Teki Kolaneci. Previously, I have worked in a telecommunication company with an experience of 11 years. In 2016 I was announced Vodafone Global hero as an innovation hungry and best employee. I have continuously worked as a freelancer, and for global companies in interesting projects about digitization, ecommerce, and automation. In 2017 I have started my journey in the crypto world as a pro-trader and as consultant in crypto projects.
I have joined the DYP company very recently. Meeting Michael and working closely together gives me absolute responsibilities and motivation to move forward in a speedy way — Making our dreams become true!
Introduction Questions Asked By Team BlockTalks
Q1. Could you please introduce Defi Yield Protocol to our community in layman’s term?
Ans — DeFi Yield Protocol is backed by an Ethereum Mining Farm with a 35 GH/s Hashrate —
The DeFi Yield Protocol (DYP) is a unique platform that allows virtually any user to provide liquidity, receive rewards in ETH for the first time since Defi started, and use an anti-manipulation feature to convert the rewards into ETH without overly affecting the price. In other words, any person can provide liquidity and earn ETH with minimum risks. Unlike some DeFi user interface, the DYP interface is quite simplified, accommodating new and expert yield farmers. Because of the mining farm, the core feature of DYP is going to be the Ethereum Mining Pool. This will help all the miners, and at the same time, the DYP token holders.
Q2. What are the advantages of Defi Yield Protocol to other alternatives in the Blockchain field?
Ans — The main difference between DYP and other staking project is that we offer a completely different platform with unique features like:
DYP Anti-Manipulation Feature
ETH Mining Pool
DYP Earn Vault
All the rewards are paid in ETH
DYP is fully backed by an Ethereum Mining Farm with a 35 GH/s Hashrate
All the smart contracts are audited before use and the staking pools use the Anti-Manipulation Feature
Q3. What are the major milestones Defi Yield Protocol achieved so far & what are in the future pipeline?
Ans — On the 30th of November the Staking dAPP (Smart Contracts + Frontend integrated with MetaMask & Trust Wallet) for 4 pools (DYP-ETH, DYP-USDC, DYP-USDT, and DYP-WBTC) + the voting dAPP and governance contract for executing smart contract functions to either burn or disburse the rewards as DYP to LP stakers, integrated with staking contracts is going to be launched. Also right now we are working on the Ethereum Mining Pool.
Questions Asked on Twitter For DeFi Yield Protocol (DYP) Team!
Q1. I heard DYP runs an ETH farm since years. I want to know in what ways it supports the growth of $DYP and what changes has been made with this much years of experience.
Ans — Yes, DYP is backed by an Ethereum Mining Farm with a 35 GH/s Hashrate. Our Mining Farm is going to help DYP to launch the Ethereum Mining Pool, there are currently more than 1,400,000 Ethereum miners worldwide so we are sure that the Mining Pool is going to contribute a lot to the growth of DYP platform. Also, although DeFi stands for decentralized finance, we chose to create the DYP token contract with our Ethereum Miner address to share some information about us with our community.
Q2. Where is the $DYP road map now? Are all targets in accordance with the current road map? and what are the next steps that will be taken in the future?
Ans — Yes, all the targets are in accordance with the current road map. On the 30th of November the Staking dAPP (Smart Contracts + Frontend integrated with MetaMask & Trust Wallet) for 4 pools (DYP-ETH, DYP-USDC, DYP-USDT, and DYP-WBTC) + the voting dAPP and governance contract for executing smart contract functions to either burn or disburse the rewards as DYP to LP stakers, integrated with staking contracts is going to be launched. After that we will wait for the security audit of the smart contracts, that means between 30th of November, and 15th of December the Staking dAPP and voting dAPP is going to be Officially launched. At the same time with the launch of the Staking dAPP and Voting dAPP we are going to lock the liquidity on Uniswap for 1 year.
After that we are going to start the development of the DYP Referral, Ethereum Mining Pool, and the DYP Earn Vault. Launch is scheduled for Q4/2020 — Q1/2021.
Q3. From the total supply, will there be any token burning in the future to reduce the total supply and automatically increase the $DYP price?
Ans — After the crowdsale ends, we will burn the unsold tokens, that means we will also need to rework the tokenomics so more tokens are going to be burned. Also, the community can decide to burn the undistributed DYP rewards from the liquidity pools. We will have 4 participating pools: DYP-ETH, DYP-USDC, DYP-USDT, and DYP-WBTC. Let’s say you want to add liquidity to the DYP-ETH pool. You will need to add 1000 DYP and the same amount in ETH, at the current market price 5.25 ETH, if DYP price is $2.5. At 00.00 UTC the DYP pool rewards are going to be converted to ETH, of course with the Uniswap Integration for calculating slippage and swapping with appropriate slippage tolerance (-2.5%), this is our anti-manipulation feature. That means the DYP price can be affected with maximum -2.5% when we distribute the rewards. In case we have undistributed rewards because of the slippage tolerance (-2.5%), after 7 days the token holders will be able to vote using the DYP tokens, for burning the undistributed rewards (this would increase the token price), or to distribute the tokens to the token holders.
Q4. Can all DYP holders vote to add some additional liquidity mining pools? Besides that, what else can holders vote on within the DeFi Yield protocol?
Ans — By holding DYP, you will be able to use DYP Governance and vote to add additional liquidity mining pools, burn tokens, or allocate DYP toward grants, strategic partnerships, governance initiatives, and other programs.
Q5. Can you tell us the mechanism and process of yield farming in your platform? What is the minimum amount to mine? How profitable it is ? How much is the ROI and what is the lock-in period in mining?
Ans — This is going to be a very long answer :) No minimum amount required, you will need to lock your funds for a minimum 24 hours in order to receive the ETH rewards. You will be able to earn more ETH with the Stake (DYP Liquidity Mining), and with the DYP Earn Vault. I will try and provide you some details about both options:
The Stake will have 4 participating pools: DYP-ETH, DYP-USDC, DYP-USDT, and DYP-WBTC. Let’s say you want to add liquidity to the DYP-ETH pool. You will need to add 1000 DYP and the same amount in ETH, at the current market price 5.25 ETH, if DYP price is $2.5. At 00.00 UTC the DYP pool rewards are going to be converted to ETH, of course with the Uniswap Integration for calculating slippage and swapping with appropriate slippage tolerance (-2.5%), this is our anti-manipulation feature. That means the DYP price can be affected with maximum -2.5% when we distribute the rewards. Now, regarding the technical part, there’ll be 1 smart contract per pool and one for disbursement, one for voting, and a few helper contracts. I forget to tell you about the voting, in case we have undistributed rewards because of the slippage tolerance (-2.5%), after 7 days the token holders will be able to vote using the DYP tokens, for burning the undistributed rewards (this would increase the token price), or to distribute the tokens to the token holders.
The DYP Earn Vault is an automated yield farming contract that allows users to deposit a particular token, for which the protocol automates yield farming strategies by moving providers funds between the most profitable platforms. Of the profits, 75% is converted to ETH and distributed to the liquidity providers, while the remaining 25% is used to buy back our protocol governance token in order to add liquidity and maintain token price stability.
Let’s look at the following example: You own 10 ETH and add liquidity to the DYP-ETH earn vault pool. Our contract will move the pool funds to the most profitable platform from that day on and let’s say they will earn 20% (2 ETH) on that day. We will use 25% to buy back our protocol token to add liquidity and maintain token price stability, which means you will receive a 1.5 ETH reward (75% from the profit). Thus, in just 24 hours, you have successfully deposited your funds (10 ETH) to the DYP-ETH earn vault pool and you have made a profit of 1.5 ETH (the contract will automatically distribute the reward to you). We will need to focus a lot on security to avoid attacks such as flash loan attacks, a lot of projects like Harvest and Value suffered from this attack, so the security of smart contracts is going to take the first place.
Questions Asked by our BlockTalks Community Members during live Session to DeFi Yield Protocol (DYP) Team!!
Q1. A big problem for a lot of Defi projects seems to be that when farming starts, the price goes down because people unload to put liquidity into the farm. Will there be an incentive to hold and not just farm and dump?
Ans — Good question, I like it :) DeFi Yield protocol aims to change the way decentralized finance is perceived by ensuring equity in the control of funds on its platform.
A major concern by DeFi critics is that whales have the power to take control of a DeFi network with the recent controversy of SushiSwap a major example.
DYP takes care of this concern by integrating a DYP anti-manipulation feature that ensures that the rewards from supported tokens (DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC POOL) are automatically converted from DYP to ETH at 00.00 UTC.
In addition, rewards are automatically distributed to liquidity providers on the platform in a fair and transparent manner. Thus ensuring that no whale would be able to manipulate the price of DYP to their advantage. This after all is the major purpose of decentralized finance.
Also if the price of DYP is affected by more than -2.5 then the maximum DYP amount that does not affect the price will be swapped to ETH, with the remaining amount distributed in the next day rewards. After seven days, if they are still undistributed DYP rewards, a governance vote will be held on whether the remaining DYP are distributed to token holders or burnt.
Q2. How your staking & Dapp model works? And how encourage you user to do staking in #DYP ? what’s your goals in this year ?
Many projects rug pulled and exit scam recently. Why should investors trust your project not to do the same?
Ans — First part of the question was already answered. First of all our project is backed by an Ethereum Mining farm with a 35 GH/s Hashrate — https://ethminer.dyp.finance. We invested more than 1 million $ in our mining farm, so we think this should matter for the investors. Also, once the Stake is launched we will add the liquidity on Uniswap and lock it for one year!
Q3. What new features DeFi Yield Protocol provides?
Ans — DYP Anti-Manipulation Feature
ETH Mining Pool
DYP Earn Vault
All the rewards are paid in ETH
DYP is fully backed by an Ethereum Mining Farm with a 35 GH/s hash rate
All the smart contracts are audited before use and the staking pools use the Anti-Manipulation Feature
Q4. How Can I Be Engage In Providing Liquidity And To Claim The DYP token?
Ans — You will be able to use the Stake after it is being launched, between 30th of November, and 15th of December. Tutorials will be released before launching the Stake with the participating liquidity pools.
Q5. What are your status regarding the audit of your smart contracts and security mechanisms to protect and assure the participants of the ecosystem?
Ans — This is the most important aspect, the security audit of the smart contracts. Our token contract was already audited two times, also all the contracts that we will be using for the Stake are going to be audited for two times before launch. We will need to focus a lot on security to avoid attacks such as flash loan attacks, a lot of projects like Harvest and Value suffered from this attack, so the security of smart contracts is going to take the first place.
Q6. Many of investors just focus on the price of token in short term instead of real value of project. Can you tell us Defi Yield what is the motivation and benefits for investors to long term?
Ans — By holding DYP, you will be able to earn ETH using:
DYP Liquidity Mining
DYP Earn Vault
Using the Ethereum Mining pool if you are a Miner
By holding DYP, you will be able to use DYP Governance and vote to add additional liquidity mining pools, burn tokens, or allocate DYP toward grants, strategic partnerships, governance initiatives, and other programs.
Q7. In this year, can DYP be able to surpass the top of DeFi? Or if not this year, will DYP take the top spot of DeFi next year? Is one of the goal of DYP to bs the top DeFi project?
Ans — The goal for DYP is to be a safe platform for it’s investors, provide ETH rewards with minimum risks, and grow in time.
Q8. 30 million DYP have been minted at genesis and will become accessible over the course of 2 years .So , after 2 years, what will happen to allocation? Is there another supply to be issue? What plan after 2 years with the allocation stated in website?
Ans — No more tokens will be minted. After two years, you will need to hold DYP tokens in order to use the platform features, so DYP is going to be more valuable with time passing.
Q9. DeFi projects that aim to be successful run the risk of opening up to a larger market. Do you plan to have more partnerships with projects similar to SKM? Will investors from all over the world be able to use the DYP token series?
Ans — Yes, we are planning to complete strategic partnerships for DYP. Yes, DYP will be used worldwide.
Q10. to create the $DYP financial ecosystem, will there be a buyback or burning of a token supply?
Ans — Yes, we will have a buyback program and a lot of tokens are going to be burned after the crowdsale ends. Also, the undistributed tokens from the liquidity pools rewards, can be burned if the community decides.
Q11. Currently most investors only care about profits at the moment but ignore the long-term benefits. So can you give them some advice why they should buy and hold this token/coin in the long term?
Ans — This is a long term project with unique features, minimum risks, so any token holder will only win for long term holding.
Q12. You hope to attract over 200,000 miners into your pool. Isn’t this number too much?Are there mouth watering incentives being put in place to help make this possible?
Ans — Actually the number is very low, there are currently more than 1,400,000 Ethereum miners worldwide.
Q13. Will there be a new Ethereum mining pool at DYP after Ethereum moves to PoS? What advantage does DYP liquidity provider get, is there any guarantee of default insurance
Ans — Yes, there will be a new Ethereum Mining Pool when Ethereum moves to PoS. The most important feature is the anti-manipulation feature, any liquidity provider will earn ETH with minimum risks, when the rewards are being distributed the price can be affected with maximum -2.5%. We believe that this is a really important aspect for any investor!
Q14. Please give us some details about your roadmap going forward, how do you plan to onboard users and gain more adoption?
Ans — Our core feature is the mining pool, we think that the mining pool will attract a lot of new investors to our platform. The mining pool is going to be launched in Q4-Q1 2021.
Unique Token for Yield Farming and Mining Pools
DYP offers a utility token that enables users to interact with the features on the DYP smart contract. Ethereum miners can join the DYP mining pool and get rewarded monthly with a 10% bonus from the ETH monthly income earned by the pool.
Also, five million DYP will be distributed to miners as an incentive to join the pool and grow the DYP platform over a period of time. Users can also stake their crypto assets to earn DYP via an automated yield farming contract.
The automated Earn Vault will distribute 75% of profits to liquidity providers while the 25% left will be used to buy back their protocol token to add liquidity and maintain token price stability.
Q15. Will the community be involved in deciding whether to change the block reward when switching to PoS? Or is a change inevitable because of the shortened time it takes to get the reward, so you’ll eventually make a suggestion and listen for any major objections?
Ans — Yes, the community will take all the important decisions. Of course we will provide some suggestions to the community, but they will decide by casting their vote using DYP Governance.
Q16. “Referral programs” attract lot of crypto users to a project,
Will DEFI YIELD PROTOCOL launch a referral program soon?
Ans — Sure, we will launch our referral program soon. Should you refer DYP to your friends, 5% of your friends rewards will be automatically sent to you whenever your friends stake DYP. You do not need to stake, it’s automatically sent to you, free of gas fee.
Here are some important links of DeFi Yield Protocol (DYP) 👇
Official Website: https://dyp.finance/
Twitter: https://twitter.com/dypfinance
GitHub: https://github.com/dypfinance
Telegram: https://t.me/dypfinance
Discord: https://discord.com/invite/kYDT6pc
