yield.vote: Basic Pool
Introduction
yield.vote quietly launches this week with an incentivised test for members of the Ethereum-based finance.vote Citizens chamber.
We launch with “Basic Pool”, which utilises a contract we call “MostBasicYield.sol”.
We took some time to go back to the drawing board and add a new pool to our yield.vote dApp, we did this for a number of reasons:
- Our Harberger Tax oriented yield.vote LP pools (now called, Resident and Tycoon), boggled people’s minds. So we wanted the opposite, an ultra simple financial primitive, to counterbalance the more innovative Harberger Tax system. That’s coming in a few weeks, but we wanted to warm people up to the ecosystem first with a nice and simple DeFi design.
- We spotted that most yields across the DeFi space were highly variable and “APY” was used, let’s say… liberally. Consequently, we wanted a pool that stuck it’s starting quote exactly at the point of staking.
- We wanted to demonstrate the potential of DeFi by providing returns with an accuracy that you won’t find in the two decimal point world of traditional financial markets.
- We wanted a single asset staking solution for users who don’t want to be LPs, but want to get FVT token yield.
- We wanted to find the DeFi version of “most basic yield”.
Most Basic Yield
It’s good to start with the basics.
“Basic” means foundational, or fundamental, something you can’t strip down any further.
Basic Pool is for the DeFi purists. It’s as close to, “put money in, you get more of it back and that’s it,” as we can get.
It launches with FVT as the staking asset.
The contract opens at a specified time and reaches maturity at a specified time. You see a quote for the yield you will receive on maturity and as long as you send your tokens before the pool cap is full, you get your quoted yield guaranteed from the timestamp of the block in which your transaction is mined.
Literally APY
APY stands for “Annual Percentage Yield”. It is the amount of yield you would get on your principal (what you put in) annualised.
Across the DeFi space you will see radically variable APY quotes, the % you see on the point of staking, is not necessarily the % you will get throughout the time your assets are staked. We consider this APE PY, not APY.
In Basic Pool, your quotes are literal. What you see is what you get.
For example:
A 10m FVT Basic Pool is launched with 100% APY with a 6 month maturity, providing users with a maximum 50% yield.
The 6 month staking time yields, X tokens per second, per token deposited.
This means that yield drops by the second throughout the Basic Pool lifecycle. A user that enters the pool on the first second will receive exactly 50% yield on their assets, after this point the quoted yield drops by the second.
Who manages the money printer best
Both in this world and the other one, money has taken on a new life. The money printer is going BRRRR everywhere, and DeFi is no different.
The birth of governance tokens in DeFi, is primarily responsible for the boom in the whole sector and the practices for managing token inventories is where the game will trend to. Those who manage their money printer best, win.
Basic Pool forms an important function in the finance.vote network by taking FVT out of circulation by providing a good deal for users to park their FVT in a contract. The cost of this is inflation to the network. Going forward, a range of yield.vote pool opportunities will be available to provide strong economic incentives to manage token velocity across the finance.vote network. Ultimately, all of these pools will be managed by FVT token holders using our second layer governance system.
No lock ups
Unlike other staking primitives in the DeFi space, Basic Pool does not require users to lock their tokens up for the entire duration of the pool. Users can exit their tokens, with their accrued yield at any time.
We firmly believe that lock ups should be used very sparingly, if at all. If the deal is good enough, users will stay staked.
This mechanism also ensures that there will not necessarily be a supply shock moment at maturity of the pool, since users can unstake and collect their share of the token emission at any time throughout the yield period.
The incentivised test pool
In order to test out Basic Pool, we will be providing Ethereum-based citizens (BSC citizens will be able to participate later) the opportunity to participate in an incentivized test pool on the Ropsten testnet, which opens at midday UTC 2nd April 2020.
The game
- Every ID that has voted since Ballot 1, has been airdropped 1 rETH.
- Users will then be able to obtain rFVT from our Ropsten based FVT uniswap pool.
- Users will then be able to stake this in Basic Pool.
- The top 3 users with the most rFVT yield in their wallets (withdrawn from the pool) at the end of the test, (3 days) 259200 seconds later will win a proportional share of a $1000 FVT pot.
Summary
Basic Pool is a new financial primitive in the DeFi space. It provides literal quotes of yield that stakers can take, or leave with, at any time.
It’s function for the network is to promote the removal of tokens out of circulating supply providing a stronger HODL base for the network. It acts as our base primitive for constructing a governance based yield system that allows FVT users to manage the monetary policy of the finance.vote network.
The test will launch today for Ethereum-based Citizens and then with a fair launch exactly one week later for all on the 9th April midday UTC.
About finance.vote
finance.vote is a decentralised organisation that creates governance dApps for DAOs. They specialise in quadratic voting technology and price discovery, with a prediction market, a decentralised auction house and a suite of gassless multi-chain voting tools designed to upgrade governance across the DeFi space.
The finance.vote dApp suite is the decision making tool kit for the future of decentralised finance. It is governed by FVT holders, who control our roadmap, monetary policy and the funding of the platform.
Join the DAO
Website: https://finance.vote
markets.vote (Prediction Market): https://markets.vote
Join our Unofficial Telegram Discussion channel: https://t.me/financedotvote and
Join our official token gated community: the Citizens Chamber. You need to mint a decentralised identity token to join.
Join our Community Call: at 3pm UTC every Friday in the unofficial group.
Follow us on Twitter: https://twitter.com/financedotvote
Follow us on Medium: https://financedotvote.medium.com
