$YOP: Powering the yProtocol
In our previous posts, we covered the competitive landscape for the YOP platform and previewed our roadmap. Today, we want to focus on the yProtocol and $YOP, the token powering the platform & protocol and why it is a critical and integral part of our product offering.
To briefly recap our token economics, $YOP will have a max supply of 88,888,888 with an initial circulating supply of less than 10m tokens. Another 2m tokens will be used to ensure sufficient liquidity on decentralised exchanges like Uniswap. We expect gross inflation to be between 4–6% initially, vesting from the treasury.
The circulating supply of $YOP should remain relatively low and early on we see $YOP becoming a deflationary asset. In fact, our projections show deflation of between 12% and 15% in the later stages of the project. As more users enter the YOP ecosystem, $YOP will be withdrawn from circulation and locked up. A token burn post V2 will further aid YOP in limiting the circulating supply. The deflationary nature of the token will ensure increased network value reducing supply creating a demand driven market for $YOP.
YOP — Yield Optimization Protocol is our proprietary mechanism to allow everyone simplified access to yield markets. Powered by the $YOP token, yProtocol will provide dynamic portfolio management, automated IL (impermanent loss) protection, aggregation and custom reward protocols. Our protocol will allow users to connect to every blockchain and access every reward programme. The yProtocol aims to improve on the innovation seen already with the likes of Yearn, Curve & Uniswap. Our vision is to expand beyond single market functions and combine all types of yield activity into our platform through yProtocol. This positions YOP to become the ultimate gateway to various networks and yield contracts. Look out for our yield protocol analysis to give more insights into how we approach this.
Building a dynamic protocol allows us to give multi-functional utility within our ecosystem for $YOP. This is where $YOP differs from other platform tokens. We think that platform and token integration can deliver significant value to the community. While other applications have native tokens, they are mostly used for in-app payments and as an indicative market capitalisation metric for fundraising, etc. Failure to design compelling token utility is, in our view, holding back the adoption and true potential of these projects.
$YOP token, on the other hand, will unlock the full capabilities of the YOP platform. By having a native token within our platform, we can reward our users and create better product incentives, ultimately leading to enhanced yOptimization. YOP rewards, for example, will have multi-tier membership with $YOP holders compensated with better yields. Holding $YOP will also allow token holders to access exclusive mining pools.
Furthermore, users of the YOP app will receive $YOP for participating in yield farming and liquidity pools. We plan on introducing special rewards for liquidity providers to $YOP pools, which could be done from the YOP dashboard, without leaving the app. We also have plans for synthetics, sYOP, allowing users to mine tokens not available in the yield markets.
In addition to being a utility token, $YOP will also play a central role in the governance of the project. Keeping the community engaged with the platform and implementing feedback. While our initial app will launch with primary integrations on Ethereum, we plan to integrate more networks and markets as we progress through our roadmap.
We can’t wait to launch our products and allow you to start benefiting from such amazing tools. The yPlatform, yProtocol and $YOP is here to make everything easier for you and improve yields. Beyond the initial yield markets, we are actively looking at how we can extract maximum value for everyone from decentralised finance protocols. This includes researching Universal Basic Income, Micro Finance & other areas. Our current development progress is going well and we look forward to announcing our core investors, backers and partners soon.