Press Release
Deflationary DeFi Protocols Continue to Gain Momentum
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The DeFi sector is fast-moving, with new strategies emerging daily. One of these technologies that seem to have found a permanent home in the market is deflationary protocols. These systems help DeFi platforms to maintain their LP token values, even while issuing new tokens to investors.
Inflationary concerns are at an all-time high in the market following a string of highly publicized incidents. The current state of DeFi is susceptible to these risks for multiple reasons. Primarily, the structure of these networks is designed in a way that leads to inflationary concerns. For example, most DeFi platforms offer some form of staking.
This staking can be in the form of liquidity pools, yield farming, or other time-locked services. Users receive rewards for locking their cryptocurrency in these products. Users also receive LP (liquidity pool) tokens to represent their level of participation in the pool. Notably, these tokens are meant to increase in value as the liquidity pool’s value rises. However, this scenario isnโt guaranteed.
Recently, developers began to see the adverse effects of issuing tokens every time someone participates in a pool. Mainly, there has been inflationary growth for these platforms. Sadly, most have no way to combat inflationary risks at this time.
These platforms are caught in a dangerous cycle of token issuance and liquidity drops. In these scenarios, anyone who holds a large percentage of the poolโs tokens can crash the market in seconds if they desire. That was until DeFi Yield Protocol (DYP) entered the market.
DYP Seeks to Bring Real Change
The developers behind DYP went to great lengths to eliminate whale manipulation. The platform introduces various systems to prevent whales from leaving other investors holding the bag. To accomplish this task, DYP pays all staking rewards out in ETH. This maneuver is a considerable change to the current structure that sees most platforms paying rewards in LP tokens or other governance tokens.
Investors who receive these tokens find themselves in a unique predicament. For one, DeFi tokens are not as stable as ETH. In many instances, investors will take these tokens and instantly convert them to ETH as part of their strategy. Critically, this approach reduces profits due to the addition of extra fees during the ETH conversion. Since DYP users receive all their rewards in ETH, there is no need to go through this headache.
ETH Conversions Daily
Another considerable advantage DYP introduces to the market is its anti-manipulation system. Notably, this protocol converts DYP tokens to ETH daily. This approach prevents massive rug pulls, such as with the recent SushiSwap fiasco. In this incident, the project’s developer suddenly traded all of the project’s LP tokens for ETH and left the market. Consequently, investors took significant losses because they were caught completely off guard.
DYP users never have to worry about these issues because the network converts DYP to ETH daily. The system even monitors the tokenโs value to guarantee no losses are brought on by the conversion. In this way, DYP keeps investors in the loop to prevent losses.
DeFi Governance
DYP token holders have a say in the network’s development. The platform conducts daily votes on vital upgrades and other pressing matters. Notably, the community votes daily on the fate of any unconverted DYP. Users get to determine whether they want to redistribute these rewards to the community. They can also choose to burn the tokens to bolster prices. In this way, DYP users are in control of their finances.
This approach is commendable because it allows users to determine the course of the token’s value. When inflationary concerns appear imminent, users can decide to burn these tokens. When the demand is high, they can choose to receive these valuable digital assets directly. No other DeFi platform offers this flexibility in its deflationary protocols at this time.
Yield Farming
DYP users can farm their crypto assets using the network. Currently, the platform offers a nice selection of farming to suit your investment needs. Developers added support for DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC pools to the network.
Importantly, Yield farming users lock their crypto into contracts similar to liquidity pool staking. For their efforts, they receive rewards in the form of ETH. Yield farming is one of the fastest-growing features in the DeFi sector. These protocols provide users with a safer and more stable alternative to trading.
Yield farming doesn’t require you to spend days researching market conditions, trading strategies, and the sectorโs key players. Instead, you just need to lock your crypto up and wait out the contract’s completion. Itโs this simplicity that continues to drive adoption.
Mining Pools
DYP’s network also supports mining pools. These pools allow you to share your computational power and earn rewards for your effort. DYP seeks to become a force in this market, with the network distributing five million DYP during its launch to this pool to incentivize miners to join. Notably, all DYP miners receive monthly bonuses of 10% of the total ETH collected via fees.
Deflationary Protocols at Their Best
The DeFi market is in the middle of a deflationary gold rush. Most platforms conduct some form of token burn or buyback nowadays. Itโs common for these measures to occur directly following the platform’s launch.
Recently, more intricate deflationary tactics have emerged in the DeFi sector. These protocols vary in their functionalities, but none offer the flexibility provided by DYP. The network keeps it simple with its deflationary system that gives its community a voice.
DYP Brings Investors More Control
DYP’s unique strategy is what sets it apart from the competition. Investors are sure to appreciate the added control measures introduced by DYP. Deflationary protocols are seen by many as a crucial integration into the DeFi sector. Only DYP offers users a chance to play a vital role in these systems. For this reason, DYP is sure to continue to spark investor interests moving forward. For now, anyone can participate in DYPโs deflationary network and earn some easy ETH rewards.
