Decentralized finance enjoyed a massive breakout year in 2020, dominating headlines as many in the crypto world became aware of the sector. Terms like trustless derivatives, token swapping, lending, staking, and yield farming became popular within the crypto community.
Despite the plethora of options available in DeFi, many investors prefer yield farming protocols to earn interest by providing liquidity.
This leads us to one of the fastest-growing yield farming protocols ‘’DYP’’. DYP, which stands for DeFi Yield Protocol, has made massive inroads in the DeFi sector since its launch in the latter half of 2020.
$63 million TVL In less than two months of Launch
One of the metrics used to measure how well a DeFi protocol performs is the Total Locked-In Value (TVL). As of Feb 2, 2021, DYP has over $63 million worth of digital assets locked into its smart contracts. The DeFi protocol has also distributed over 2,369 ETH worth more than $3,681,415 since its launch.
It also distributes on average 116 ETH ($180,000) in rewards to liquidity providers daily. This statistic shows the growth that DYP has experienced within its relatively short time frame after launch.
Built on the Ethereum platform, DYP appeals to the Ethereum community and has leveraged its ecosystem depth and potential.
DYP built on Strong Fundamentals
The massive growth of DYP is a result of its solid fundamentals and unique anti-manipulation feature. The anti-manipulation feature ensures that DYP smart contract is fair to all liquidity providers.
This system works by converting all DYP rewards to Ethereum daily at 00:00 UTC and distributes them to liquidity providers. To further control inflation on its platform, DYP smart contracts use a system that ensures equity in rewards. If the price of DYP changes by more than 2.5%, then the maximum amount of DYP that does not affect the price is generated as rewards.
If it is surplus, the remainder is allocated for the next day, and if after seven days, there are undistributed tokens. The protocol holds a governance vote to determine whether to burn or distribute tokens to holders. This process encompasses the ideals of decentralized finance and puts DYP on the right path for success.
Easy Staking Platform for Investors
DYP, like most defi yielding platforms, offers a user-friendly staking platform for yield farmers to provide liquidity. Users can begin supplying their liquidity tokens from Uniswap (Uniswap LP tokens) into the corresponding list of pools. DYP currently has four liquidity pools supported, DYP-ETH, DYP-WBTC, DYP-USDC, and DYP-USDT.
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). Dividends are paid directly to users’ wallets, and investors can earn yields on their assets. Currently, the APY for the DYP staking pool is between 248% and 692%.
DYP Launches New Farming dApp with Inbuilt Referral System
DYP recently launched a new farming dApp that gives fastened rewards for buyers. This staking platform provides a staking pool the place buyers earn DYP tokens for fastened proportion rewards. The quantity made additionally will depend on the lock-period, and customers can decide to lock their DYP tokens from anyplace between a month to 4 months.
Locking DYP tokens for a month attracts a 20 % APR whereas people who lock their tokens for 120 days obtain a better APR of 35%. Additionally, DYP has built-in a referral system the place customers are rewarded with 5% of their good friend’s reward each time they stake DYP. Inside just a few days of its launch, the farming dApp already has over $1 million staked inside its platform.
Extra Developments Anticipated in Q1 2021
The workforce behind DYP shouldn’t be resting on its laurels and has already begun plans to roll out new developments within the first quarter of the 12 months. The extremely anticipated DYP Earn Vault is at the moment within the works and will probably be launched within the coming weeks. The Vault will provide automated earnings to stakers and help Ethereum (ETH, Wrapped Bitcoin (wBTC), and several other stablecoins.
One other undertaking within the works is the Ethereum mining pool. DYP has dedicated important sources to create a pool for neighborhood members to mine Ethereum. As soon as the hashrate of the pool reaches 250GH/s, DYP will roll it out to the neighborhood.
Lastly, DYP is engaged on creating the DYP instruments dashboard that may present on-chain data for merchants. DYP instruments will function a belief rating that grades initiatives listed on Uniswap utilizing completely different parameters.
Merchants and buyers will be capable of analyze initiatives and make guided selections with the DYP instrument.