Farming has been one of the primary attributes accelerating the DeFi space. To put it simply, yield farming is a way to generate returns with cryptocurrency holdings. Farming through YFDAI allows you to earn rewards by providing liquidity in a variety of pools. YFDAI is opening the first farming pool on 25th October 2020. The total rewards dedicated to YFDAI farming services are 1,455 YFDAI. These tokens will be distributed among a total of 4 Pools to start with and all Farmed tokens will be eventually burnt. More pools will open later on and will be decided by the governance vote.
The majority of farming pools are simply a means of token distribution, which causes token inflation. This inflation caused by farming can harm token values over time. Many protocols like to offer high APYs in the introductory stage to attract attention. While these attractive APY’s can generate hype in the short term, they inevitably fall quickly to shallow levels as they are not sustainable. When this happens, farmers are left with no option but to continually seek out newer pools. While this farm hopping can be advantageous, it takes a lot of time and skill to manage. Of course, the risk of hopping to new pools always remains. The fresher the pool, the higher the risk that the project may not succeed, thus increasing the risk of the underlying token to crash.
YFDAI has set out to make farming fun, safe, secure, and most of all, sustainable. Below we’ve compiled a brief segment of the first available farming vaults. Enjoy
Farming with YFDAI will commence with four vaults to choose from and will later expand.
Vault 1- (YFDAI/ETH) 20 YFDAI monthly reward, locking period 72 hours. 0.5% withdrawal fee.
Vault 2- (YFDAI/ETH) Choice of 30, 35, 45 YFDAI monthly in pool for 30, 60, or 90 days. ( 30 YFDAI for 30 days, 35, for 60 days, and 45 for 90 days.)
Vault 3- (DAI Vault) Daily rewards of 0.066%, monthly 2%, yearly 24%. 0.5% withdrawal fee.
Vault 4- (ETH Vault) Daily rewards of 0.033333%, monthly 1%, yearly 12%. 0.05 withdrawal fee.
The total rewards dedicated to YFDAI farming services are 1,455 YFDAI. These tokens will be distributed among a total of the current 4 Pools. All Farmed tokens will be eventually burnt until the total supply of YFDAI reaches 13,950.
BONUS* Farmers and Stakers who hold for a minimum of 30 days onwards automatically qualify for a distributed portion of profit shares from SafeSwap (5%), SafePredict (25%), SafeSwap advertisements (25%), and borrower/lender fees (25%).
For a full breakdown of the YFDAI farming process and project, please check out our whitepaper on our website!
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