Yield - A FactoryDAO Application
Yield application is another product of the FactoryDAO organization. It is an application where users can lock their funds in liquidity pools and get fixed or variable interest in return. Staking in liquidity pools supports the creation of decentralized markets. Yield.vote has configurable management parameters that can be modified by the DAO.
Yield - a liquidity mining and staking platform
The yield.vote application is another product from finance.vote organization. The yield.vote app is a liquidity mining and staking platform where users can lock their funds in liquidity pools and get fixed or variable interest in return. Staking in liquidity pools supports the creation of decentralized markets.
The application working is based on the principle of sowing grains into the field and harvesting crops. That agricultural analogy translates easily into a yield farming app - the farmer is the user, the grains are the tokens, the field is the liquidity pool, and the crop is the profit. Users put tokens into the liquidity pool, wait for interest to grow, and then get a profit. We can define yield farming as lending cryptocurrency via blockchain network with the difference that the lender doesn’t meet the borrower and the specific borrower doesn’t return the funds to the specific lender. Yield farming is based on liquidity pools, which are smart contracts that store funds.
What business needs and market situation we found:
The main reason for creating the yield.vote app was the need for a yield farming app as one of the finance.vote crypto eco-system part. Currently existing on markets yield farming applications are not interesting, don’t incentive non-whale users to stake into pools, and often aren’t trustworthy. Lack of unique designed pools caused that recreating them is easy for potential scammers and looking on dozens of identical pools got boring to the users. All that caused the need to develop a custom version for our client.
The goals and solutions the team proposed for the project:
The main goal was of our work to create a yield farming application that would be different from those currently available on the market, and that would be an innovative and interesting product for single users as well as for large institutions. Another very important challenge for the team was to think through ways of how to make an onboard process for novice users easy, and free from confusion and reckless money loss.
The other points to implement were:
- How to avoid killing the app by whales (big players)
- Enable the entire functionality to be copied as a template for potential partners
- Display a graphical representation of the price changing over time
- Support the withdrawal of a contract at any point during its life
- Show pool statistics such as locked funds in the contract, APY, pool size, etc.
- Support calls through virtual wallets.
Result of the completed project:
- Implemented three different pool types:
- The first one with only one function as an ease-in for new users and beginners at yield farming. The only functionality is staking and getting profit over time. This pool lasts for a predefined amount of time.
- The second one (advanced) is for regular users who are not newcomers or whales. The pool never ends but interests are calculated proportionally for a predefined period (pool interval). The sooner users stake in the pool, the bigger will be their incomes when the interval ends. The pool is arranged in some kind of a game, where a user „buys” a resident and occupies it as long as another user won’t kick them out and take over the place.
- The third one is only for whales with big stakes and big rewards. Rules are the same as in the second pool with the only difference that the maximum value allowed to be put into the pool is much higher.
- The final application outcome is a beautiful gamified staking system spinning around yield farming but also making the whole experience more fun and interesting. Creating three separate spaces for beginners, regular users and whales make this system fitting for everyone. Graphic representation of interests changing in time makes planning the right moment of staking easier and more conscious.
- The whole interface is designed this way that every potential partner will expand the site without breaking UI or changing UX. That approach allows saving development time and avoiding the necessity of making additional decisions.