The best spot for an intriguing adventure to everything crypto.
Mainstream projects keep on unraveling in the DeFi world, intending to provide convenient financial services to everyone. Leveraging ethereum's technology is one of the best boosts that the projects have adapted to thrive in the market.
Moreover, yield farming has become a profitable business in the crypto market in that users become liquidity providers after investing with DeFi platforms. In return, investors receive rewards and bonuses for dedicating their finances.
DeFi Yield Protocol, dubbed as DYP, plays the same role on the DeFi space while Ethereum's smart contract technology regulates it. The ERC-20 token platform is multi-featured, implementing many functionalities in a single ecosystem, particularly mining on ethereum, which boasts as one of the best cryptocurrencies today.
Simply put, smart contracts are computer programs that run by what a user sets. It encompasses codes(functions) found on the ethereum blockchain. Similar to an ordinary contract, smart contracts automatically execute rules through the code, provided users have enough gas and learn some smart contract languages.
On the other hand, gas is the computational amount required to perform specific tasks on the ethereum network. Smart contracts build the bridge between transacting parties as it completes transactions depending on how it's programmed.
DYP adopts the same technology as it permits investors to stake dApp via a smart contract linked with Metamask wallets. Computer-based programs usually encounter breaches that slow down or compromise the entire system. Due to this reason, DYP conducts auditing procedures on their smart contracts to eliminate any bugs that may cripple the contract's functionalities.
Binding contracts are going digital as we slowly shift to a new modernized era. We establish some of the advantages smart contracts carry.
Eliminates Third Parties
Smart contracts remove the need for intermediaries to complete transactional operations. The automated code consequently saves on money that would be used for third party involvement.
Manually formulating a contract is prone to error, and in extreme cases, users fail to meet the indicated agreement. On the other hand, smart contracts complete their obligations without fail and perform precisely as programmed by the transacting parties.
Since smart contracts are typically computer codes, transaction processes take place within the shortest time possible.
The contracts are safeguarded with heavy encryption techniques; hence, no malicious user can breach or manipulate the stated agreement.
Statistics rank ethereum as the second-largest digital currency globally, with a value of $593.40 at the time of writing. Aside from being the earliest adopters of smart contracts, ethereum grants developers the ability to develop decentralized applications and create censorship-free software.
DYP's dedication to ethereum is evident after the farming protocol invested $1million on their mining farm for three years. Ethereum miners secure a 10% bonus in DYP for utilizing the platform's pool. For instance, if a Miner receives an income of 10 ETH, a bonus equivalent to 1 ETH is added in DYP.
Airdrop incomes are also available, provided miners actively participate in the pool. The mining pool rolls out in Q1 of 2021 after achieving a hash rate of 250GH/s, an appropriate frequency to mine a single pool.
Owing to the complexity of mining ethereum and the gas prices, DYP earns approximately 67-150 ETH each month. All the earnings acquired from the mining endeavors instantly go to DYP. Community interactions are part of DYP's larger motive to formulate their token contract with ethereum's miner address and provide the same services as a DeFi ecosystem.
The presence of whales in a platform can be hectic, especially when they are onboard to completely manipulate a particular token. DYP deploys a distinct anti-manipulation feature that swaps all pool rewards from DYP to ETH at 00:00 UTC to avoid cases of dumping digital assets as experienced in the past.
The pool pairs associated with the conversion include DYP/USDC, DYP/USDT, DYP/ETH, and DYP/WBTC. After that, all rewards are equally distributed to the liquidity providers. This brilliant move guarantees that major shareholders or whales don't take over the ecosystem for their gain.
To keep the token's price steady, DYP converts the rewards to ETH every day. In case the prices waver beyond 2.5%, the maximum unaffected DYP amount is automatically converted to ETH as the remaining amount is circulated the following day in the form of rewards.
The leftover tokens are burnt or allocated to token owners later on, depending on what the DYP governance community decides.
DYP is well organized with all their plans to ensure users engage with a stable and rewarding ecosystem. It makes sure no whale takes over the entire system by converting the liquidity rewards from DYP to ETH and fairly distributes the earnings to liquidity providers afterward.
To become part of the DYP community and purchase the token, users need to deposit a minimum of 0.5 ETH and a maximum of 100 ETH to the crowd sale address. Projects like DYP may give the DeFi space unlimited benefits while serving everyone financially and eliminating financial exclusions.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect Crypto Adventure’s position. The analysis performed within this article is only for educational and informational purposes. The author of this post may or may not own DYP Tokens.
Create your free account to unlock your custom reading experience.