YFDAI - Building DeFi 2.0

Nov 04, 2020

The Problem

During the Summer of 2020, the crypto space saw a surge in new DeFi offerings. It felt like you couldn’t lose if you invested in these tokens as they all seemed to pump right out of the Uniswap gates. Ignoring the longer-term questions of sustainability and competitive advantage while prices across the board were skyrocketing, investors piled in doing little to no due diligence. As a result, many fell victim to the scammers with their flash-in-the-pan food coins, valueless forks, and ponzinomics. Worse yet, many fell victim to the proverbial “rug pull” where devs had no intention of completing the project and just set it up to steal investor’s money. There is no doubt that scammers have damaged the reputation of DeFi. Now that the market has cooled down, level heads may prevail as investors now position for the next stage of DeFi.

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The Reaction

With YFDAI, we have entered a new frontier of legitimate Stateless open-source financial protocols for economic activity. Most of what is DeFi is less than two years old and only in the past few months have we even got glimpses of how these protocols may behave and compete in the long-run. YFDAI’s vision is to offer sustainable long-term growth-oriented products while helping to clean up the DeFi space.

The Solution

It’s impossible to predict how this fast-evolving industry will play out even months from now, let alone years. But that doesn’t mean investors can’t be thoughtful about what actually matters and what doesn’t. What matters for the long-term DeFi investor is safety, security, predictability, profits, with foreseeable and reasonable risk. YFDAI seeks to meet those needs with a strategy that involves creating a foreseeable and sustainable competitive advantage that will allow their DeFi protocols to create and capture value now and well into the future.

We at DEFI WORLD believe that the world of DeFi is rife with opportunities. It's up to thoughtful investors to take advantage of them. This article will explain to you how YFDAI will help you safely enter the DeFi space and make predictable profits while avoiding the riskier side of DeFi.

What is YFDAI?

YFDAI is a DeFi protocol that allows you to access a wide variety of decentralized financial products. It is a full suite DeFi Ecosystem. The YFDAI Platform merges the latest DeFi tools with transparency and sustainable tokenomics practices that ensure a strong, lasting, and functional protocol for the long term. Through the YFDAI protocol users can receive a residual income through a myriad of DeFi tools and services. Unlike many of their competitors, they have managed to construct a viable DeFi protocol while removing the threat of inflation. The YFDAI deflationary model will result in just 13,950 tokens after the burn mechanisms have been finalized. The YFDAI Farming and Staking schemes are set to provide some of the highest levels of sustainable returns in the industry. Users not only receive the YF-DAI token but also fee-sharing from the platform.

YFDAI also will incorporate both a decentralized exchange, SafeSwap, and a centralized exchange with FIAT to CRYPTO conversion. YFDAI is poised to change the Cryptocurrency and DeFi Industries forever.

YFDAI Services

- Staking - Live, providing 72% a year fixed return

- Farming – Live, sustainable high returns without inflation

Coming soon:

- Launchpad (Nov-Dec 2020)

- SafeSwap Exchange (Nov-Dec 2020)

- Lending/Borrowing (Nov-Dec 2020)

- Insurance (Nov-Dec 2020)

- SafePredict (Nov-Dec 2020)

Coming Q1 2021-Q2 2021:

-Crypto Debit Card

-Advanced Centralized Exchange

-P2P Bank Transfer

-Auto Market making Algos

-E-commerce payment solution

-Wallet service with DeFi & Cex both

-Deposit with card

Staking & Farming

You can Stake your YF-DAI tokens, which gives you a fixed return per year of 72% APR with no risk of Impermanent Loss. Or you can Farm your YF-DAI tokens which gives you a variable interest rate, as listed on Coingecko, (currently over 230%) depending on how many people are in the 6 different pools. The initial returns are generated through allocated YFDAI tokens rather than minting new tokens. The total Token supply was hard-capped at 21,000 tokens. Because YFDAI has a fixed supply, and there is a burn mechanism that will ultimately burn 6150 tokens, leaving a supply of just 13,950 tokens, it is a deflationary token. Everyone using the protocol pays protocol fees. Some of the fees are sent to the Staking/Farming contracts to sustain the rewards while others are sent to the burn address as reflected in the above chart.

Lending/Borrowing

You can also lend your tokens on YFDAI. This is a concept DeFi users are familiar with. Protocols like Aave or Compound are pioneers in this field. You give your tokens to another person who will pay back the loan + interest. When the loan is taken out there is a 1% difference between what the buyer pays and what the lender receives in interest. From the 1% protocol fee, 50% is used to burn YFDAI tokens while the other 50% is split amongst the Staking/Farming pools.

Insurance

YFDAI also enables you to ensure your funds. YFDAI's insurance feature works similarly to Opyn and Nexus Mutual. Therefore you can protect your assets against systematic protocol risks.

LaunchPad

YFDAI’s LaunchPad service will offer incubation services where projects would have to follow the same strict protocol that YFDAI themselves followed:

- Locked Liquidity

- Locked Team, Advisor, and marketing tokens in time-release smart contracts

- No mint function in the contract

- Audited by Blockchain Consilium

This will put an end to “rug pulls” and “exit scams”

SafeSwap exchange

YFDAI's native exchange will be launched in November. SafeSwap will only allow projects that have passed their vetting and includes token locks, liquidity locks, and audited code by established crypto auditing companies like Blockchain Consilium.

YFDAI’s Tokenomics

The tokenomics have been well thought out and provide for multiple streams of income to fund the Farming and Staking pools in addition to the allocated YFDAI that users receive in exchange for locking their tokens for different periods of time. The longer one Stakes/Farms the higher the multiplier for the additional bonuses from YFDAI platform fees. This process is designed to be sustainable over the long haul.

Once the allocated YFDAI is all awarded to the Stakers/Farmers, the rewards will shift from YFDAI tokens to the new project tokens that will be using the LaunchPad service. This will grant users the ability to purchase and/or farm tokens of vetted LaunchPad projects that have a great chance of success. Stakers and Farmers will also continue to receive the usual rewards from the YFDAI platform fees that are allocated to those programs.

In December 2020, additional programs will be coming online including lending, borrowing, and Insurance services. As users use these services, additional fees will be generated that will likewise go to the burn process and be paid to the Stakers/Farmers. The development fund will also continue to be replenished along with the marketing budget. Once everything is built out, YFDAI will be handing over governance to the community via its DAO voting system.

YFDAI’s value proposition will only continue to increase in 2021 as the eCommerce platform deploys. Debit cards are going to be available as will a Fiat - Crypto centralized, licensed exchange.

Over 66% (5116) of the original 7700 tokens generated on Uniswap have been Staked 6150 tokens will eventually be removed from circulation by the burning process, thus, leaving an ultimate maximum circulating supply of 13,950 tokens. At present, there are only approximately 2500 tokens in circulation when you factor in the staked tokens being out of circulation along with the locked tokens.

YFDAI and Total Addressable Markets (TAM)

The value proposition of YFDAI is enhanced by the number of markets they seek to disrupt. YFDAI targets a multitude of TAMs such as remittances, store of value, online transactions, micropayments, ICOs, and crypto trading via LaunchPad and SafeSwap, the unbanked, lending and borrowing, unit of account, and medium of exchange use cases. YFDAI encompasses the complete vision of DeFi tools by offering many of the same services that are currently provided by the mainstream banking system.

6 Month Growth Potential:

YFDAI has a market cap of around $2,600,000 at the moment, with over $10,000,000 TVL in the Staking app. While other similar projects have market caps 10x -100x or more of YFDAI, with fewer services and TAM’s. Trustswap and YFL both have market caps of over $15,000,000. YFI has over $312,000,000 market cap and their staking is paying 6.55% APR and their farming 4-46% APR. YFDAI’s staking is paying over 10X of YFI, and the farming has just launched and its yields are also eclipsing the 46% YFI is paying as their maximum yield. YFI’s price is currently $10,435 (Down from over $43,000 ATH) and their total token supply is 30,000. As a protocol that offers a wider range of services and income sources with a goal of ⅓ of the total YFI token supply, YFDAI is poised to one day eclipse the market cap of YFI and other popular DeFi plays. YFDAI is poised to break through current industry ceilings while establishing a new standard in decentralized finance.

Comparison of YFDAI to some competitors

Recent Announcements

YFDAI’s Staking was launched in September 2020 and their Farming Pools in October 2020. SafeSwap is already on the testnet ahead of schedule. YFDAI recently received an “A” rating from “Proof of Review” They have posted numerous Medium articles, educational videos, and other media teaching users how to use the many DeFi products that are offered on the YFDAI platform. To fulfill their promise to uphold the highest levels of transparency, the YFDAI team has posted regular transparency reports and token burn addresses. As a result of regular engagement with the community, the team has cultivated a dedicated and loyal user base in their Telegram, Discord, Twitter, and other social media channels. By leading with secure and transparent practices and by delivering on their goals stated in the roadmap, the community can always feel great pride in being involved with a project that carries strong fundamentals from the blockchain to the real world. The team has released their professionally written Whitepaper detailing their vision, mission, goals, and strategies to become the new standard in DeFi. They have applied for the Financial Services license in Estonia and will also be seeking an Ecommerce license which they intend to build upon with a multitude of additional products. They have added more devs to the core team and have revealed their identity to the public after seeking legal advice on doing so. They intend to make sure they deliver the remainder of products in a timely manner and are well on their way to achieving a level of success that will be the envy of the DeFi community.

Social Sentiment & Developer View

YFDAI’s Telegram is a vibrant and growing community of over 3600 members. Moderators and Devs are quick to answer all questions and address all comments 24/7. Constant news and updates are coming out on a daily basis to all YFDAI media channels, including Twitter, Medium, and others. There are also regular AMAs (Ask Me Anything) that are conducted in other Telegram groups and Youtuber channels and the community is very engaged and excited to hear the news. Bitboy just did a review on YFDAI and Ivan on Tech has given it mention lately as well. There will be another AMA on November 3, 2020 at 1:00 pm with Pentoshi.

Weaknesses

At present the YFDAI token trades on Uniswap, Cointiger, Bilaxy, and most recently Exmarkets. Other Centralized Exchanges are being pursued and once listed on larger exchanges, the volume should increase. Also, the marketing campaign has begun in earnest, so more people will be exposed to the virtues of investing in YFDAI in the coming weeks and months. Not all products are live yet but will be delivered in the coming months as well.

Conclusion

YFDAI provides a full platform of financial services while it tackles one of the most fundamental problems in the crypto space - protecting investors from exit scams and rug pulls. Because everything on the blockchain is transparent, you can check for yourself that the team's marketing and team and adviser's tokens are locked along with the liquidity tokens. All projects that will launch through YFDAI will likewise have to adhere to these same protocols. YFDAI currently provides far more features than most of its competitors and is still undervalued in comparison.

Whether or not YFDAI will become the next YFI, is anybody’s guess, but we at DEFI WORLD believe that YFDAI has an excellent chance to become a leader in this industry. The fundamentals look promising, the code is audited by Blockchain Consilium, the devs are not anonymous, the community is vibrant and supportive, and there is no chance of rug pulls or scams from this team.

Please do your own research before you invest in YF-DAI. If you want to learn more about this protocol, check out their website.

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