YFValue: Bringing True Value to Yield Farming

Some communities have come to us with feedback and their issues with Defi Yield Farming.

A lot of them are small players, and some only have a few hundreds of stable-coins; it’s nearly impossible for them to join in the fun of Yield Farming. “I want to be part of the game, but gas fees are too high and I lose more than what I get out because I’m only doing subsistence farming for my family!”

The most successful projects, as the community has consistently pointed out, are word-of-mouth marketing campaigns; if there is an incentive for people to spread the word, such as a small referral bonus for the introducer, without affecting the farmers, it’ll help the protocol spread exponentially.

And, of course, where would we be without governance? The community should have control over the Yield Farming protocol and even the distribution of the Yield Farming Protocol coins. Wouldn’t it be great to have fully on-chain governance, without the need to manually update the parameters?

The feedback from the community is quite valid and on point. That’s why we built a solution to handle all these issues, to bring Yield Farming to YOU, whether you are a big or a small player.

And that is how YFValue is born.

YFV is the governance token of YFValue protocol. The project aims to bring the true value of yield farming finance accessible to all users, regardless of whether you are a big whale or small minnow, via its unique features, namely the voting of the inflationary rate of the supply and a referral system with automatic burning done fully on-chain.

  • YFV.Finance is a DeFi yield aggregator
  • First-ever Vote on-chain Supply Inflation rate to enable farmers to vote on-chain and automatic execution will be made based on the votes counted.
  • YFV has a stable-coins pool which allows even small players to join the DeFi Yield Farming. The number of users will then be 100x or more compared to other DeFi Yield Farming Protocol.
  • Referral and Burn On-chain to motivate the community who are giving a hand for bringing YFV to the public.
  • Last but not least, the separated Elastic Supply Stable-coins vUSD and vETH are great add-on benefits for the farmers and the whole ecosystem later on along the road map.

How Do I earn YFV?

First-ever Yield Farming Protocol that has a pool allows you to stake your stable coins directly.

YFV tokens are distributed across 11 pools:

  • Pool 0 aka Seed pool: staking Stable-coins (USDT, USDC, TUSD, DAI) with 3% (630k YFV) of total YFV will be farmed there
  • BAL Pool: staking BAL/YFV (98/2 ratio) with 3% (630k YFV) total YFV to be farmed .
  • YFI Pool: staking YFI/YFV (98/2 ratio) with 3% (630k YFV) total YFV to be farmed .
  • BAT Pool: staking BAT/YFV (98/2 ratio) with 4% (840k YFV) total YFV to be farmed .
  • REN Pool: staking REN/YFV (98/2 ratio) with 4% (840k YFV) total YFV to be farmed .
  • KNC Pool: staking KNC/YFV (98/2 ratio) with 6% (1,260k YFV) total YFV to be farmed.
  • REN-BTC Pool: staking RenBTC/wBTC/YFV (49/49/2 ratio) with 10% (2,100k YFV) total YFV to be farmed.
  • ETH Pool: staking WETH/YFV (98/2 ratio) with 10% (2,100k YFV) total YFV to be farmed.
  • LINK Pool: staking LINK/YFV (98/2 ratio) with 10% (2,100k YFV) total YFV to be farmed.
  • UNIv2 Pool (to be voted): staking yCRV/YFV (50/50) with 25% (5,250k YFV) total YFV to be farmed. This pool is on Uniswap v2 and will be voted by the community to launch it or not. Start-date of this pool is no earlier than 22nd Aug. If the pool is voted not to start, the tokens dedicated to this pool will be burnt.
  • YFV Pool: staking YFV with 15% (3,150k YFV) total YFV to be farmed.

Holders of any of the above tokens can stake those tokens into YFV’s Front End and start earning YFV.

Token Supply & Distribution Schedule

There’s a total supply of 21,000,000 YFV

Distribution Schedule will be changed accordingly to the voting of the YFV farmers.

Introducing vUSD and vETH

A great add-on for YFV farmers is the creation of 2 new tokens with elastic supply called vUSD and vETH. This is an experimental protocol mashing up the current most exciting innovations in the DeFi world. Following Ampleforth elastic supply models, vUSD and vETH will expand and contract supply in response to market conditions, to target 1 USD per vUSD and 1 ETH per vETH.

vUSD and vETH will be used in the whole ecosystem, in the subsequent step of the road map, to set up Vault, pay rewards, stake etc….

There will be a total of 1,000,000 vUSD and 1000 vETH distributed to all pools according to their percentage. When farmers harvest YFV, vUSD and vETH will be harvested at the same rate as well.

After all the pools have been exhausted, vUSD and vETH will use an oracle price feed as determined by the governance of YFV. The rebase will use the UniswapV2_VUSD+YCRVUSD Liquidity Pool and UniswapV2_vETH +YCRvETH Liquidity Pool as the oracle for the price with a target of 1USD = vUSD and 1ETH = vETH.

In addition, rebase events occur once every 24 hours.

Fair Farming

Also you should be aware that YFV creators will only start farming at the same time as the rest of the community. No project will be successful if the developers do not devote sufficient time and energy into the project. A farming subsidy is important to the development and longevity of the project in both development and marketing. Hence, there is a dedicated farm subsidy pool of 7% that will be used for development and marketing purposes. This pool is vested over 50 weeks (approximately 1 year). We believe this is fair and good for the long term growth of YFV.

Referral and Burn On-Chain

What is better marketing than word-of-mouth! To thank you for bringing YFV to the community, we are glad to introduce the first ever Referral & Burn On-Chain solution in a Defi Yield Farming Protocol.

Should you refer YFV to your friends, 1% of your friends’ rewards will be automatically sent to you whenever your friends harvest YFV. You do not need to harvest, it’s automatically sent to you, free of gas fee.

If you do not have anyone refer you, the 1% referral will be automatically burnt whenever you harvest your YFV.

Governance

One of the core unique features of YFV is the ability to Vote On-Chain regarding YFV’s Supply Inflation Rate. YFV provides the governance and the right to determine and update functionality of the YFV protocol, as well as change/update distribution rate of YFV tokens.
Whoever stake in those pools will have the right to vote on-chain for the distribution rate, be it faster or slower. At the end of each week, the total vote will be automatically counted and the distribution rate will be automatically changed if any. All of these features are directly programmed into the smart contract.

How does it work?

Suppose you are farming the LINK Pool, but you want to farm the ETH pool for a while, before switching back. You do not want to miss the distribution of assets from the LINK Pool, so you vote to reduce the distribution rate.

Another person would like to hold LINK for the short term, and of course they would like to increase the inflation rate as fast as possible. They will vote to increase the distribution rate.

In essence, the community can vote how long the YFV crop can be harvested from a given pool but the total amount of the harvest remains the same. At the end of each epoch, the distribution rate will be changed to the median of all the votes, weighted by pool weight, with a maximum change in either direction per epoch to be half or double. If someone farming the pool chooses not to vote, their default vote is the current distribution rate.

An example to illustrate how it works:

  • Suppose Alice has 10% stake of the pool and votes 0.5 (which means the distribution rate reduce to half) while Bob stakes 3% of the pool and votes 2 (which means double the distribution rate)
  • Assume only A and B vote, the rest does not vote at all, the distribution rate after voting over is (.1*0.5 + .03*2 + 1*.87) = 0.9375 of the previous distribution rate.

This is a slight simplification of the formula as we want to avoid cases of people staking to vote then unstake right away. As such, we use Voting Power which is a combination of percentage of the pool and the length of time that person has staked so far.

  • So you still can vote even if you have already unstaked.
  • If you just only started farming, even if you hold a significant percentage of the pool, your vote might not have as large of an effect.

Please also note that:

  • You can only vote once per week per pool. So please consider carefully before casting your vote.
  • If no one votes, the distribution rate will be unchanged.
  • Only top 50 highest voting-power farmers’ votes will be counted. If there’s already 50 votes and your voting-power is lower than those voted, you can’t vote anymore.

Audits: None. YFV creators are experienced DeFi and Blockchain developers and have spent a great amount of effort to ensure the security of the contracts, including forking the codebase of well-audited projects as well as soliciting review from experienced friends. As such, there is no formal audit at this time. We STRONGLY urge caution to anyone who engages with these contracts. We shall consider a proper professional audit in the next phase of the project.

Proofs of Burning: After the initial distribution of YFV for the purpose of setting up all Balancer pools, the team will burn the minter and proof will be posted right after that.

We want to explicitly state that YFV holds zero inherent value and any value which may accrue to the token is entirely decided by the community and its token holders.

Given that the YFV Protocol is taking a community-organic approach rather than raising capital via VCs and allocating large portions to the founders, team, and/or the protocol’s foundation, YFV offers an interesting experiment for a new stability protocol compared to other Defi Yield Farming Protocols.

For more information on YFV Protocol, make sure to read the Official Blog Post, For those interested in farming some YFVs, you can do so via YFV.finance as well as gov.yfv.finance

Lastly, to stay up to date on YFV, you can see updates via Twitter and Discord.

Official Sources:

Token Address: 0x45f24BaEef268BB6d63AEe5129015d69702BCDfa

Github: https://github.com/yfv-finance

Twitter: https://twitter.com/FinanceYfv

Discord: https://discord.com/invite/Dpvd7tp

Website: https://yfv.finance

Total Supply: 21,000,000 YFV

Pools: 10

Launch: August 17th 2020, 08:00:00 GMT+0

Bring True Value to DeFi — https://valuedefi.io