As the DeFi sector heats up, developers continue to get more creative in their approaches to the industry’s problems. DYP is one such platform that seeks to combat inflation and centralization. The network integrates various new systems to provide users the ability to stake DeFi tokens and receive rewards directly in Ethereum.
This feature is a big plus to investors who often need to go through an additional step to complete their investment strategy. Ethereum is more stable than most DeFi tokens. However, converting tokens to ETH reduces your ROI due to fees and losses incurred due to volatility. For these reasons, it’s common for DeFi investors to convert their rewards into ETH.
DeFi Staking is Now Live
DYP recently announced the start of its DeFi staking protocol this week. This feature allows anyone to stake their DeFi tokens and earn a passive income. Many investors see staking as a better alternative to trading cryptocurrencies. For one, you don’t need to do a ton of research to earn when you stake your crypto. You simply agree to lock up your crypto for a predetermined period. For your efforts, you receive rewards.
In comparison, trading cryptocurrencies requires intensive research. You need to understand trading strategies and the projects available in the market. All of this research is beyond the average crypto investor. Most investors are content earning rewards without all of the extra efforts.
Why Getting Paid Rewards in Ethereum is a Big Deal
Getting paid DeFi staking rewards in ETH is a big deal for many reasons. For one, it saves investors the time, trouble, and fees associated with converting other DeFi tokens into ETH. Additionally, it helps to control inflationary concerns in the market. As of late, DeFi platforms have begun to issue too many tokens to support their pool’s value. Whenever this occurs, token prices drop.
Whale concerns are another major issue that DYP Finance’s approach eliminates. Experienced investors understand that the actions of Whales can have a significant effect on the market. There are multiple instances of whales or even developers removing liquidity from their pools via a large scale ETH conversion. Just recently, the founder of Sushi Swap did exactly this maneuver. Sadly, his actions led to the liquidity of Sushi Swap plummeting in seconds.
DYP users avoid these concerns because of the network’s anti-manipulation protocols. These systems prevent whales from removing all the liquidity in the project. DYP Finance’s unique strategy reduces the risks of whale interference in multiple ways.
Resistant to Manipulation
First, the platform integrates various anti-manipulation protocols into its core coding. For example, every day at 00:00 UTC, the network automatically converts the DYP rewards over to ETH. The system will evaluate the price of DYP. If it concludes the conversion affects the tokens value by more than -2.5, it will reduce it. In the end, the system adjusts the conversion rate to include the maximum DYP amount that doesn’t affect the price.
If there are extra DYP tokens, they are carried over and distributed in the following day’s rewards. Impressively, the DYP anti-manipulation feature ensures that all pools retain liquidity. The network currently supports DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC staking.
Decentralized Governance Goes Live
Another development announced by DYP is the start of governance protocols. Keenly, DYP leverages a decentralized governance system to give all users a vote in the network’s direction. Voting matters include upgrades, adding new pools, or changing fees. Additionally, DYP users vote daily on whether or not to burn extra DYP rewards left following the daily conversion or distribute them amongst the network.
This strategy is a new approach to deflationary DeFi. Allowing users to determine these rewards’ fate is a powerful way to include users in stabilizing the token’s value. This approach also promotes transparency in the network. Everyone can see the rewards paid in real-time or track the burning of these tokens. It will be interesting to see what option is the most popular moving forward.
Technical Aspects of DYP.Finance
DYP was built atop the world’s second-largest Proof-of-Work blockchain, Ethereum. Ethereum is by far the most popular blockchain for DeFi projects. DYP developers utilized a variety of programming languages to bring this profitable project to life. Specifically, HTML5, CSS3, Bootstrap, and Ethereum’s Solidity protocol were used.
The DYP token is at the heart of the network’s functionality. This governance token is what users stake to earn ETH rewards. Notably, DYP is an ERC-20 token. In this way, you can store it in any ERC-20 wallet or trade it on popular DEXs such as Uniswap.
In the DYP ecosystem, you pay fees in DYP tokens. Importantly, you gain voting rights when you hold this token. The more DYP in your network wallet, the more voting power you have. This strategy incentivizes users to keep DYP, and it helps to support the token’s long term value.
DYP can also function as a traditional cryptocurrency. You can send or receive it globally in seconds from any compatible wallet. In this way, DYP demonstrates a high level of flexibility in the sector. You can even use the token to yield farm. DYP supports automated farming contracts. At this moment, there is an excellent selection of pools, including DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC.
Ethereum Mining Pool
Starting Q1 2021 you can also join an Ethereum mining pool with 0% fees if you are a miner. DYP offers some rewards for your participation. Mining pool users get rewarded monthly with a 10% monthly bonus of the ETH monthly income earned. Impressively, DYP will distribute five million DYP to miners as an incentive to join the pool during its launch.
DYP – A Smart Alternative in the Market
DYP’s selection of premium DeFi features is enough to continue to attract more investors to the platform moving forward. The system’s unique deflationary governance mechanism is sure to interest both users and other platforms seeking alternative methods to combat inflation. If successful, DYP could spark a series of copy cat platforms in the coming weeks. For now, DeFi users seeking ETH rewards can participate in this network and start earning today.