Liquidity Pool Fees

Liquidity providers will receive stablecoins by staking a Yield Ones NFT.

These rewards are fully sustainable and based on volume.

This concept of sustainable incentives to liquidity providers is called "Real Yield." You may have noticed we took inspiration from that concept to name our platform token the same.

Community Market liquidity pools reward stablecoins to users at an amount that is positively proportional to their share of the total amount staked.

Base Pool Rewards

The base pool rewards are distributed fees to users at an amount that is positively proportional to their share of the total amount staked. This Pool receives 30% of all generated fees.

The token emission for a deposit in the base pool is defined as:

Boosted Pool Rewards

Community Market liquidity pools utilize an additional token, $veRY (VE is short for Vested Escrow and RY for REALYIELD), inspired by voting escrow CRV (veCRV) of Curve Finance.

This is a non-transferable token used to assist in distributing pool fees based on your NFT level. It creates this underlying system where higher level NFTs produce a higher amount of non-transferable veRY. This Pool receives 60% of all generated fees.

How does veRY dictate the yield distribution of the pool fees?

  1. A staked Yield One NFT generates $veRY daily, proportional to its level (the exact amount of $veRY generated can be seen in the NFTs stats section under Daily veRY Allocation).

  2. The maximum amount of veRY that can be held is equal to the staked NFT's DVA (Daily veRY Allocation) multiplied by 300. If you ever reach this amount, your NFT pauses production of $veRY.

  3. Upon unstaking the Yield One, total $veRY becomes 0. This promotes long term staking and ownership of the Yield One NFT.

  4. $veRY is non-transferable and non-tradeable due to the design of the smart contract, i.e. $veRY token will be locked in the private wallet of the user.

How does the weighted distribution of $veRY work?

The weighted function for the pool is defined as:

All things equal, the level of your Yield Ones NFT will dictate the distribution of rewards to higher level NFTs.

In order to maximize the yield generated by the staked capital, investors will need to upgrade their NFT level to match those of higher level NFTs already staked in the platform.

The higher the level of your NFT, the higher $veRY it generates daily.

In Summary

30% of pool fees are governed by the amount stablecoin assets staked. 60% of the pool fees are distribute for liquidity miners that have higher amounts of veRY, which translates to, higher level staked Yield Ones NFT. The remainding 10% are retained by the protocol.

Last updated