Locks, Swaps & Launches
The summer of 2020 witnessed many incredible developments in DeFi, but perhaps none were as impressive as the rise of decentralized exchanges. DEX liquidity pools reshape how trading and fundraising work, and there’s a lot of money at stake. Unfortunately, bad actors have taken advantage of the decentralized nature of liquidity pools and automated market makers (AMMs) like Uniswap. Thousands of Ether (ETH) have been stolen by anonymous “developers” who remove liquidity (called “rug pulling”), leaving investors with worthless tokens and a lot less ETH.
Ultimately, DeFi is only as safe as the parties and protocols involved. Far too many times we’ve seen traders and investors get burned because the keys to Uniswap liquidity were in the hands of bad actors. To reassure market participants it has somewhat become a trend to lock liquidity, especially amongst anonymous teams. Projects lock their liquidity to increase trust with their community. The YOP team understands the importance of demonstrating our commitment to the long-term success of the project, and we have been planning to lock up liquidity since launch. Even though our team is very public and known to the industry we have been exploring several options to find the most secure and suitable protocol for locks.
Today, we are excited to announce our partnership with TrustSwap. We will be locking our liquidity with TrustSwap’s SmartLock. Of the options available, we found TrustSwap’s to be the most transparent, flexible and secure, making it a perfect option to lock funds while remaining adaptable to the ever-changing DeFi landscape. Moreover, the integration of TrustSwap’s features into YOP’s platform presents some intriguing possibilities to explore, such as using Smart Swaps for OTC deals.
The total launch liquidity on Uniswap will be locked. This will occur in a rolling contract of three months at a time. This period will ensure safety in the early stages of our project, while giving YOP the agility it needs in the fast-moving world of DeFi. Locking liquidity on Uniswap would for longer periods would not be optimum should other DEX platforms gain popularity. A three-month lock gives us the flexibility to reassess where we will hold our funds over the medium to long term. Liquidity will be locked again after the three-month time period expires. Our reserve wallet will also be locked with TrustSwap’s SmartLock contracts.
Beyond the TeamFinance product from TrustSwap and the OTC SmartSwap, we have announced TrustSwap launchpad as an integration partner for the coming Yield Optimization Pad. Here YOP customers will be able to access TrustSwap launches directly from the YOP application if they conform to the process of the launch pool. We look forward to sharing more details on how we can collaborate on this as we build out the YOP Pad.
TrustSwap was launched in July 2020 by Jeff Kirdeikis, who envisioned using smart contracts to securely and immutably transfer, swap and exchange funds. TrustSwap’s features enable a range of creative use-cases including time-released token distribution, automated employee payments, and two-party swaps. Most importantly, TrustSwap is a secure, flexible and established provider for locking tokens. In a short time-span, TrustSwap has become the leader in the space for ensuring safe liquidity and token locks.
YOP is a Yield Optimization Platform and Protocol: an all-in-one application that makes it easy for everyone to access yield markets. YOP gives you custody, market insights, token swaps, and yield farming customization inside one single application. YOP is chain-agnostic and will focus on integrating DeFi protocols across seven blockchain networks including (but not limited to) Ethereum, Polkadot, Binance Smart Chain, and Solana.
YOP looks forward to building and exploring more use-cases following the integration of TrustSwap’s protocol into the yPlatform. We are proud to be a part of the TrustSwap ecosystem, and working with strong partners like Trustswap will both boost YOP’s stack of technology and bring better products to our users. We look forward to revealing more great partnerships in the coming days and weeks.