(And What Happens If APYs Are No Longer Sustainable)
SyncDAO is creating a non-custodial solution that makes continuous wealth creation possible for DeFi users. Our system’s architecture is built to help users make the most from their crypto assets following their first initial deposit in our Perpetual Vault.
One of the significant perks of the Perpetual Vaults is that they offer strategies drawing from the best DeFi annual percentage yields (APY). This is possible because the Perpetual Vault has multiple strategies for generating yields, making consistently competitive APYs a reality for users.
You might be curious about the sustainability of the APY. How is the SyncDAO ecosystem structured to respond if the yields are no longer competitive? Is there any risk of loss for Vault users? These are valid questions, and will be explained here.
Holding the SyncDAO Governance Token (SDG) gives users the right to play a role in voting and maintaining the best selection of DeFi strategies being used within the Perpetual Vaults to generate returns. We are building a community of strategists who are committed to the same vision and values we are, and who will have a range of understanding about the DeFi market. SDG holders can put forward proposals for different DeFi Vault strategies that are available and vote in new strategies to maximize sustainable returns. This offers the possibility of having a pool of ideas from which token holders can choose the most suitable.
We will then work on implementing the chosen idea into reality to continue maximizing returns for users by including these DeFi strategies in the vaults. In this way, Perpetual Vaults will generate returns from a selection of the best options in DeFi. This strategy highlights the importance of SyncDAO’s community-led approach to the financial system. Where everyone has a voice, it’s much easier to find solutions, to lean into successful innovation and to continue to evolve the Vault strategy to keep up with ongoing advances in the DeFi space.
We want to know what are your favourite DeFi projects and what you like about them. Bring your ideas to the table and be part of the community! As long as DeFi is thriving in the world — as long as the technology is fuelling freedom and accessibility to financial products such as lending and borrowing, liquidity provision — then SyncDAO will include the best of those DeFi products in the Perpetual Vault strategy.
How The Perpetual Vault Works
The Perpetual Vault serves as the place where users deposit their coins. The power of the vault lies in the fact that it creates an unstoppable income stream for users and a perpetual payment stream for affiliates. Thanks to the secure and unstoppable smart contracts, the funds deposited into the Perpetual Vaults will still be generating income in 50, 100 or even 1,000 years! When we say forever money — we literally mean forever! That’s why we’ve put so much attention on sustainability and the ability to evolve as DeFi does.
When users deposit in the perpetual vault, they are issued a Perpetual Vault Token (PVT) as a receipt, which they can stake to trigger their farm to generate funds. Note that once users deposit their desired currency into the vault and mint new PVTs, they can no longer withdraw the original currency. These stablecoins will be locked in the vault generating funds, forever. However, they can transact with the issued PVT token, whether they intend to transfer it or sell it.
Understanding the need to make the system valuable in the market and healthily competitive, we included a PVT Buyback program in the architecture to facilitate a healthy market for buying and selling PVTs. While the minting of PVTs through deposits is essential for continuity and incentivized by affiliate commissions, creating a system for value stability in the PVT resale market is equally important.
As such, both the generated returns from unstaked PVTs and the affiliate share of returns on un-affiliated users will be poured back into the DAO and used to buy back PVTs. This makes the entire architecture sustainable and strengthens its market value. Furthermore, with the buyback program set at parity, so $1 for 1 PVT, the open market for PVTs is supported to always come back to a stable peg.
With such a strong system, the sustainability of APYs and longevity of the Perpetual Vaults has been built in. We have focused on the continuance of the Perpetual Vaults, making it an adaptive architecture that can stand the test of time. At SyncDAO, our goal is to build a platform that will outlive the founders, so your income stream will outlive you and literally continue forever — and that’s what the Perpetual Vault is all about.
If you’d like to know more about SyncDAO you can check out the website at syncdao.com
You can join the conversation on one of our channels
syncdao.com/discord
syncdao.com/telegram
syncdao.com/medium
syncdao.com/facebook
syncdao.com/twitter
Or check out more in depth details about the project;
syncdao.com/deck
syncdao.com/litepaper
syncdao.com/tokenomics
IMPORTANT: SyncDAO Governance (SDG) token has not been released as yet. Do not engage with any imposter SDG. The Ethereum contract address will be displayed on syncdao.com closer to the launch. This token (SDG) doesn’t have any inherent value but gives you the utility to vote on proposals put forward.
