Y-Men Finance Yield Farming 2.0
DeFi seems to be changing and evolving everyday. The vast number of copy paste projects offer nothing different. Founders create new coins, with large treasuries, hire some influencers to hype up their project, and as of late, most of them are gone within a week, scamming unsuspecting investors in the process. At Y-Men we’re looking to change how yield farming is done.
Yield Farming 1.0
Most Yield farming projects have the same basic components. A token is created, then those tokens, along with Ethererum, are used to provide liquidity on Uniswap in exchange for LP tokens. Those LP tokens are then deposited onto the yield farming dApp and “staked”. Users are then rewarded in the native token. Unfortunately the only people to benefit from these projects are insiders or advisors who are given early access to these platforms, while new investors rush to purchase tokens in pursuit of 6–7 digit APY. The problem with this model is investors are constantly fighting with dilution. These projects tend to have crazy inflation schedules that cause Market Capitalization to balloon, enriching only very early investors. In the real world we call these models Ponzi Schemes, in Crypto we call it yield farming.
Y-Men and Yield Farming 2.0
Y-men Finance has looked at this flaw in Yield Farming and designed a better approach. Y-men is a deflationary currency. As of this writing the current supply of $YMEN is 64,700 tokens. Each transaction burns 2% of tokens. This incentivizes holding of YMEN. Deflation in and of itself isn’t enough to give value to any crypto currency, after all something is only as valuable as what someone is willing to pay for it. So what’s the plan? How is Y-Men Finance looking to change the Yield farming environment? Y-Men will launch its Yield Farming platform on September 12th with a couple unique features.
Y-Men will offer a two-token system for Yield Farming. The yield token will be called MUTANT. Initial participants will be able to deposit a variety of LP tokens just like Yield farming 1.0. The YMEN/ETH LP will offer a 10x multiplier for a short time. The difference here is that yield rewards are paid out in MUTANT, so YMEN holders are NEVER diluted. MUTANT will ONLY trade against YMEN. This makes for interesting game theory, and was initially the creation of Bill Drummond when he launched Token of Babel and only provided liquidity against the Antiample token. Due to the built in burn mechanism in YMEN, farmers who are just in it for the quick yield will have to trade MUTANT into YMEN then YMEN into Ether. This will result in a constant reduction in supply, while demand remains high. The greatest theoretical returns come from staking YMEN/ETH initially, however once TVL exceeds a certain point, yield farmers will then be incentivized to stake in the YMEN/MUTANT pool as APY slowly decreases on the YMEN/ETH pool.
Another benefit of YMEN, and its deflationary nature, is that individuals who wish to speculate on the tokens value appreciation don’t need to stake in order to participate. Yield farming can be complicated, and many could-be investors are pushed out of the entire DeFi sector as they just don’t understand the mechanics behind it. Yield Farming 1.0 projects tend to be poor stand alone investments without staking. This is because the never ending inflation that occurs, as new coins are minted, dilutes token value very quickly.
Yield Farming Lauch September 12th
We are extremely happy to announce that our platform is going live at block 10849177. The code has been carefully implemented and tested several days prior to the release. While this code has been inspired by Sushiswap, we have implemented fixes mentioned by https://github.com/quantstamp/sushiswap-security-review. Adding liquidity to the following pools will allow you to farm MUTANT tokens.
1. YMEN-ETH: 18%
2. MUTANT-YMEN: 25%
3. USDT-ETH: 9%
4. COMP-ETH: 6%
5. DAI-ETH: 9%
6. WBTC-ETH: 9%
7. YFI-ETH: 5%
8. LINK-ETH: 5%
9. LEND-ETH: 5%
10. AMPL-ETH: 9%
The strategy employed here was to give value to both YMEN and MUTANT tokens by providing the highest multipliers for the YMEN-ETH and MUTANT-YMEN pools, having a slight emphasis on MUTANT-YMEN. Since the highest APY exists in pools that require YMEN to acquire LP’s, this should keep demand for YMEN very high. If the economic principles of supply and demand take over, a decreasing ,and very limited supply, should result in in long term growth in YMEN value proposition. During the first two weeks (100000 blocks), every 13 seconds (each block), 1000 MUTANT are minted and divided amongst all yield farming pools. After 100000 blocks, inflation on MUTANT will drop to 100 per block. After long discussion and community engagement, we decided that the MUTANT/YMEN Liquidity Pool token will be used as a governance token to decide the direction of the project moving forward. This is another unique feature of the Y-Men family of tokens, as most governance is done using only one token. The Team is working to make sure there is utility for both tokens.
Contract Details
The MutantToken contract owner is theMasterYmen contract. The MasterYmen owner is the Tokenlock contract. The Tokenlock contract owner is our Lead Developer. In order to write an update to the MasterYmen contract, a 48 hour grace period is started before every change. This means potential changes such as adding pools, changing pool allocations, and and other matters need to wait 48 hours before it goes through. This gives the community time to verify that changes are as per their wishes. This also prevents the team from making any major decisions to the contracts without the communities input.
Community Treasury Vote
We have debated over and over on how to progress with future development of this project: Marketing, exchanges, bug bounties, audits, rewards etc. Unfortunately not many things are free in Crypto and the budget thus far has come out of the teams pocket. This has been a hindering factor for some of these things which the community has expressed great interest in. The team did not have any YMEN allocation and that will not change. Knowing that Sushi and Sashimi have a 10% treasury fund for their farming mechanism, we brought it to a vote and the community decided that 5% of the MUTANT rewards will go to a treasury. The Team is committed to staying as transparent as possible with these funds so this will be MUTANT’s first governance use case: Expense approval.
Any expense or usage of these funds will have to go by a community vote based on MUTANT holdings. If the majority of votes are in favor, then the expense goes through. There may be situations where NDA’s are required and if so, we will keep the community as informed on those decisions as possible. an example may be an exchange listing. In this case the community would be given information such as “ An Exchange in the top 10 on Coinmarketcap”
Team Ethos, Belief, and Mission Statement
Y-Men decided early on that this project wasn’t just going to be a money grab to enrich a few team members. Many DeFi projects raise hundreds of Ethereum, lock up a portion of that for liquidity, then on top of that, designate a huge percentage of the total supply to the team. These teams are essentially getting a massive pay day before they’ve even provided a MVP. Y-Men offered a small Initial Liquidity Offering of 30 Ethereum, that entire liquidity was locked, and 0 tokens were reserved for the team. We then held a community vote to ask about MUTANT and allow everyone to voice their opinions. Y-Men is a grass roots project. Our focus is on building a strong community, a better platform, and natural growth. We are looking to create something that people get excited to be invested in. Something that gives everyone an equal chance at participation in this new economic experiment.
Closing Thoughts
DeFi is a new twist to Finance. Yield farming offers an attractive reward to investors who are willing to take the risk and supply liquidity to new projects. However where there is money to be made, there are nefarious actors looking to make a quick buck. Projects like Sushi pose a systematic threat to the crypto market as a whole. Aggressive inflation curves are not sustainable, and token holders are swimming against the current, as yields diminish quickly and token prices plummet with a never ending supply of new tokens being minted. Y-Men believes Yield Farming 2.0 is the next logical step in the evolution of Decentralized Finance. We hope you will Join us on September 12th as we launch our platform.
