Bootstrapping liquidity is the classic chicken and egg problem.
Source: The Liquidity Problem by Thomas Scaria
At YieldLion, liquidity, measured as investments made by users, is essential for us to grow revenues steadily.
Side note: YieldLion’s revenues stem from the spreads that it earns from its hedges. YieldLion takes no positional risk as every investment made by users is fully hedged.
To thrive & succeed, YieldLion recognizes that it will need the support of users.
However, staking risk-free or riskless funds in a contract per se is not useful.
On the other hand, actual purchase of investment products by users is useful. It is primarily this useful liquidity which YieldLion will seek to reward.
To bootstrap utilisation of the platform, YieldLion will distribute a revenue-sharing token (tentatively named “YIELD”) at no cost to users who purchase structured investment products on the platform.
Here’s how it works
At 08:00 UTC Friday of every week, there are structured investment products that mature.
YIELD will be distributed each week to those purchasers who have structured investment products that mature that week.
Therefore, we expect that our platform supporters will receive both immediate benefits and long-term benefits.
- Immediate benefits in the form of YIELD tokens (which are a form of rebate/bonus) for their active contribution to the platform (in the form of purchase of structured investment products)
- Long-term benefits in the form of passive income that they will indirectly receive as a share of platform revenues if they continue to hold YIELD tokens (even if they do not subsequently purchase structured investment products). This passive income arrives in the form of USDC distributed to YIELD tokenholders.
Earn it — don’t buy it (unless you really, really, really want to).
YIELD can be earned (“farmed”) through actual use of the platform, and this is the way we encourage folks to secure their share of the revenues of the platform.
Yes, you read that right: YIELD is a revenue-sharing token.
A revenue-sharing token (+ governance)
A lot of projects disclaim their tokens as “valueless, governance tokens”. Presumably, this may help avoid over-speculation in the tokens as well as regulatory oversight over digital assets that may be deemed securities.
We would like to state upfront:
Our tokens have financial value, though it is at your discretion at how to value it.
Every month, 25% of all revenues generated by the platform will be distributed to YIELD holders collectively.
Needless to say, you should not buy YIELD if the laws in your jurisdiction prohibit you from doing so.
We don’t intend to police you (our platform is KYC-free) so act responsibly & within the laws in your jurisdiction.
Emission starts from 08:00 UTC time on 6 Nov 2020
Start by signing up for a free account.
Any early adopters from 08:00 UTC on 6 Nov 2020 will benefit from a higher pace of emission than later adopters.
The Power of 300000
Sparta had 300.
Avengers: Endgame had 3000.
YFI had 30000.
YieldLion has 300000. That’s right, the total number of YIELD tokens that will ever be minted is capped at 300000.
In a later post, we will describe the:
- Token distribution.
- Emission schedule.
Update: Our later post on Token Distribution & Emission Schedule can be found here. We can unequivocally state that we intend to distribute no less than 70% of YIELD to the platform’s actual users (i.e. purchasers of structured investment products).
Other ways to earn: Referral links
Get a referral code and add to your earnings as your referred users purchase structured investment products on YieldLion.
Come start your investing journey on YieldLion. We hope you enjoy the safe & steady yields that you can enjoy on the platform.