As with the design of any platform, we faced the challenge of striking the right balance in distributing tokens to various stakeholders in the project:
- Platform users: This was relatively easy — they are all-important. They drive the usage of the platform. Initially, we wanted to distribute 50% of all YIELD tokens, but finally settled at 70% because (a) users play an outsized role in determining our success & keeping them aligned for the long-term is important, and (b) we plan to roll-out many additional products in time to come, and wanted to spread incentives across those products as well.
- Exchange liquidity providers: We follow in the footsteps of projects that have chosen to incentivize liquidity providers on DEXes (e.g. Uniswap, Balancer). However, our emphasis is on what we term useful liquidity, hence the skew in rewarding more tokens to users of the platform (see point 1 above). For exchange liquidity providers, we allocate 10% to be spread across 4 years.
- Investors & advisors: To those that helped seed this project — thank you. We have a 10% allocation here that will vest over 4 years.
- Team: The team that drives this project will also have a 10% allocation that will vest over 4 years.
USDC distributions will only be paid out to distributed & unlocked / vested tokens. Vesting for investors, advisors & team will be based on a quarterly distribution (details to come) and only commence on 1st Jan 2021.
Come start your investing journey on YieldLion. We hope you enjoy the safe & steady yields that you can enjoy on the platform.
Note: This post builds on this earlier post where we discussed growing useful liquidity on the platform.