Decentralized Finance (DeFi) has become an explosive topic in crypto's realms, with the sector realizing immense growth in recent years. Currently, there are over $20 billion in digital assets that have been locked across various DeFi protocols. The platforms offer excellent investment opportunities for digital currency enthusiasts, allowing them to earn substantial ROIs while in full control of their digital assets.
DYP.Finance is a DeFi protocol that brings new ideas to the DeFi space, specifically Yield Farming. The Protocol enables DeFi investors to earn ETH rewards by providing liquidity. In addition, DYP.Finance goes at greater length to solve some challenges in the DeFi space, notably volatility and manipulation of token prices by whales. Here's an in-depth review of the platform.
What is DYP.Finance?
DeFi Yield Protocol (DYP) is a decentralized exchange platform built on the Ethereum blockchain. The platform allows users to become liquidity providers (LPs) and earn rewards in Ethereum rather than the native tokens. By rewarding investors in Ethereum, DYP.Finance protects investors from the volatility of tokens and, at the same time, ensures that the tokens 'value remains stable via its anti-manipulation capabilities.
DYP.Finance is unique as it brings a solution to the risk associated with yield farming by ensuring fair network participation and changing the earning model for investors. The platform achieves this through its innovative anti-manipulation feature; it ensures that all pools (DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC pool) rewards are automatically converted from DYP to ETH every 24 hours. The system then distributes the ETH rewards to the liquidity providers fairly, ensuring that all network participants have an equal footing. In essence, the anti-manipulation feature disables crypto whales from manipulating the price of DYP for their own benefits.
In addition to the anti-manipulation feature, DYP.Finance also introduces other elements, notably the DYP Earn Vault and DYP Tools. The DYP Earn Vault automates yield farming contracts by maximizing ROI. The earnings are distributed as a 75/25 split going towards liquidity providers and DYP buyback. It will offer support for ETH, USDC, USDT, DAI, and WBTC in five different lockup durations.
DeFi Yield Protocol staking dApp
On 20th December 2020, DYP.Finance launched its innovative staking protocol that allows liquidity providers to earn ETH rewards via smart contracts and Metamask wallets. DYP currently has four supported liquidity pools: DYP-ETH, DYP-WBTC, DYP-USDC, and DYP-USDT. It is listed on Gate.io, Uniswap, and Bithumb.
Each pool offers four different staking options with rewards ranging from 30,000 DYP up to 100,000 DYP monthly depending on the lock period (3 days up to 90 days). At the moment, the APY for the DYP staking pool is between 160.20% and 319.44%. The pool with the highest APY has the highest minimum lock period of 90 days. The platform also allows users to reinvest their rewards without paying any additional fees, further translating to increased profits.
Each staking pool has a smart contract protocol which serves as the anti-manipulation feature to automatically convert DYP rewards into ETH every 24 hours and distribute it directly to LPs. In the scenario that the DYP token value gets affected by over -2.5%, DYP is automatically swapped to ETH up to the amount that will not affect the price. The remaining DYP tokens are distributed the next day as daily rewards. In case of any undistributed token, users vote via the governance vault for either redistribution or burning after seven days. Currently, 441,366.37 DYP worth over $1,650,945 have been burned.
According to the official DeFi Yield Protocol’s official Twitter page, DYP liquidity providers have currently earned 5,520.69 ETH via the project’s unique staking dApp since its launch less than three months ago. During this period, it has paid over $10,127,441 and processes rewards of over 100 ETH daily. Currently, the total value locked in the staking pools stands at $54,228,214 since December 2020. It is a clear indication of the platform's substantial growth in recent times.
The staking dApp also incorporates a referral program where users who invite their friends to use DYP tokens earn 5% of their referrals’ rewards directly to their wallets.
dApp Farming Platform
In addition to the staking platform, DYP.Finance recently launched farming pools allowing users to deposit their DYP tokens and earn DYP rewards. Each DYP farming pool has four different staking options, with rewards starting from 20% APR up to 35% APR, based on the lock time from a minimum of thirty days up to 120 days. Currently, the total value locked in the farming pools stands at $1,026,977 since January 2021.
DYP.Finance Compared to Other DeFi Staking Platform
When put up against other DeFi staking platforms, DYP.Finance is a top contender in regards to ROIs. The APY for the DYP staking pool is between 160.20% and 319.44%, meaning that the returns are quite lucrative. The platform incorporates both staking and yield farming pools into a single platform and pays all rewards out in ETH instead of DeFi tokens. As such, users don't have to convert their staking or yield farming rewards into ETH on DEXs such as Uniswap and SushiSwap, in turn eliminating fees and inefficiencies associated with the exchange.
In essence, DYP.Finance innovative features, including a decentralized governance system, DeFi yield farming with automated vaults, and combined with Ethereum mining pool, make it a top-ranking DeFi platform.
What Does the Future Hold for DYP.Finance?
DYP.Finance has more in store for its users. The DeFi platform continues to innovate new products, set to be released in the first half of 2021. Some of the innovative products lined up for release in the coming days include:
- Ethereum Mining
DYP.Finance plans to launch a zero-fee pool for Ethereum mining in the first quarter of 2021. The Ethereum mining pool is set to bring value to the Ethereum ecosystem allowing DYP.Finance users to interact with ETH miners.
When launched, users will join the mining pool with 0% fees if they are miners, with a 10% monthly bonus of the ETH monthly income earned as reward. DYP has also promised a five million DYP Airdrop to miners as an incentive to join the pool during its launch. However, the mining pool will only launch when Ethereum blockchain hashrate reaches 250 GH/s-it is currently at 35 GH/s.
- DYP Earn Vault
DYP Earn Vault will allow users to earn rewards by staking several tokens, including Ethereum and stablecoins, for rewards. DYP Earn Vault is essentially an automatic yield farming contract that supports a specific token deposit. The feature will automate yield farming by moving the depositing user's funds to the most profitable platform.
Of the profits, 75% is distributed to the liquidity providers, while the remaining 25% is used to buy back DYP tokens to add liquidity. It will offer rewards in ETH, WBTC, USDC, USDT, DAI, + extra DYP rewards for each pool.
- DYP Tools
DYP.Finance is developing a suite of tools, notably DEX project information for DYP DEX users and a custom DEX tool dashboard. The tools will be useful to DYP users and will also support access to Uniswap projects. For instance, they will provide a homepage listing all the top tokens with their direct links on Uniswap and other exchanges.
- DYP Liquidity Locker
The DYP Liquidity Locker will allow locking of Uniswap liquidity for multiple pools and multiple vesting lockers for Uniswap liquidity.
Conclusion
DYP’s selection of premium DeFi features makes it a unique DeFi platform with great potential for solving Yield Farming and DeFi problems. The platform’s unique deflationary governance mechanism is sure to interest both users and other platforms seeking alternative methods to combat inflation.
The wholesome DYP.Finance ecosystem is proving itself to be an excellent DeFi platform with incredible ROIs as well as unmatched asset security achieved via both audited smart contracts and the proprietary anti-manipulation feature. DeFi users seeking ETH rewards with high security can participate in DYP.Finance and start earning today.
See you soon
Christophe WILHELM
Source: DeFi.Finance
Credits photo: https://www.mycointainer.com/
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