On December 27, the yield farming aggregator platform, 'DeFi yield protocol' DYP launched its updated buyback, farming and staking pools. Such pools now live across multiple chains, including Ethereum, Avalanche and Binance Smart Chain (BSC).
DeFi yield protocol provides various DeFi instruments to investors, allowing them to earn rewards for their contributions to the network. DYP’s products available on the Ethereum, Avalanche and BSC chains include buyback, staking and yield farming.
Ethereum’s buyback pool allows investors to earn up to 350% annual percentage yield on the DYP platform, by staking cryptocurrencies such as WETH, WBTC, USDC, USDT, DAI or LINK.
Avalanche’s buyback pool allows holders to earn up to 145% APY by staking crypto coins like WAVAX, USDC.e, USDT.e, WETH.e, PNG, QI, DAI.e, XAVA, WBTC.e or LINK.
Finally, the BSC buyback pool enables investors to earn up to 100% annual percentage yield by staking crypto tokens such as BNB, BTCB, ETH, BUSD or CAKE.
Once users deposit coins into these pools, their funds are converted into a mixture of DYP and iDYP tokens and put into a staking contract. Rewards vary from 30% to 350% annual percentage yield depending on the chain selected and the length of time chosen to lock up these tokens, which is normally a minimum of three days to a maximum of 90 days. All rewards are withdrawn in DYP tokens.
On the DYP platform, users can stake their liquidity provider tokens into any of the three pools and get rewards. Investors can stake their tokens on the Avalanche chain within the DYP platform and earn up to 130% APY. Additionally, they can stake their coins on the Ethereum chain and earn up to 550% annual percentage yield, and they can also stake them on the BSC chain and earn up to 50% APY. Thus, it is the users that decide which chain to choose to get the maximum rewards. They can invest their tokens for a longer period of time in order to get the best rates. They can choose different staking options within each pool to get a reward from 30,000 DYP to 100,000 DYP per month. The flexible staking options on the DYP platform allow investors to lock their funds for a specific period of time.
Besides that, the DYP Farming pools allow users to lock the funds for a period of one month to four months to earn rewards. Users can deposit tokens on the Ethereum chain within the DYP platform and earn cryptocurrencies such as ETH, WBTC, USDC or USDT as rewards. While BSC’s farming pool accepts crypto coins like WBNB, BTCB, ETH, BUSD or CAKE, Avalanche’s farming pool accepts AVAX. The returns for investing in the Ethereum, Avalanche and BSC farming pools begin from 20% APR to 350% APR, depending on the pools that investors choose. Such rewards can be reinvested within the DYP platform using an inbuilt feature for improved returns.
Since the launch of the staking, farming and buyback products, the DYP platform has gained popularity from the crypto community. Within one week, DYP’s staking, farming and buyback pools have accumulated more than $90 million in deposits. DYP rewarded its investors with 9,032 ETH, 7,997 BNB and 15,867 AVAX, which totaled $44,149,334 in tokens during that time.
DYP incorporated an anti-manipulation feature on its platform to make the protocol stand out from the rest. The manipulation feature ensures that the network’s liquidity is always fair to all participants, by preventing whales, those with more tokens or resources, from influencing the price of DYP tokens to their advantage. The DYP platform achieves this by automatically converting the DYP reward generated by the buyback, farming and staking pools to ETH every day at 00:00 UTC before distributing it among liquidity providers.
Yield Farming In DeFi
The announcement by the DYP platform to have launched its buyback, farming and staking pools comes at a time when yield farming in decentralized finance has become one of the major trends in 2021, thus providing investors with a better opportunity to increase their income-generating activities. Currently, $1.9 billion is locked in DeFi, which is evidence showing that crypto owners are adding increasingly more value to DeFi applications. These applications have helped to recreate traditional financial systems, like banks and exchanges with crypto assets. In fact, most of these run on the Ethereum blockchain.
Through DeFi lending, investors can lend out crypto coins, like the way a traditional bank does with fiat currency, and earn interest as a lender. Lending and borrowing are among the common use cases for DeFi applications. However, there are several increasingly more complex use cases, like becoming a liquidity provider to a decentralized exchange. Interest rates are normally more attractive than what traditional banks offer. The barrier to entry to borrow is typically low compared to getting a loan from a traditional bank. Though in most cases, the only requirement for investors to get a DeFi loan is the ability to offer collateral with other cryptocurrencies. In certain cases, users can provide their NFTs as collateral, depending on the DeFi protocol used. However, the DeFi ecosystem comes with more risks than a traditional bank.
