Here’s how they manage to bring up to 65% APYs to YOP users

  • Base APY: This is the return generated from the underlying strategies in the Vault and is denominated in the deposit token (e.g USDC for USDC Genesis Vault). There is no “claim” option for these returns as they are automatically re-invested into the strategy. When it comes to withdrawal, users would see the increase in their tokens deposited.
  • Reward APY: This component of returns is separate from the return generated from the underlying strategies and is always denominated in $YOP. A portion of the community emissions is allocated to each Vault and the share of each depositor depends on a set of factors.

Public Launch & Reward APY’s

Moving into the Public Launch, Vault caps will be increasing significantly and there will be no gated access onto the dApp (via YOPxMEME NFTs). This would mean that the Reward APY’s in the Vaults would be diluted as new depositors arrive into the Vaults.

Boosted Returns

In the new Boost methodology, both a user’s share in the Vaults and share of the LockBox determines the $YOP rewards allocated to them. The Boost is in the form of a multiplier x1 — x10, that applies to the Reward APY.

  • Depositors that do not have any $YOP staked will receive a “Basic Boost” (x1).
  • Depositors that have staked but have a lower share of the LockBox than the Vault, will receive a “Sub-Optimal Boost” (x1 — x9).
  • Depositors that have an equal share of the LockBox and the Vault, will receive an “Optimal Boost” (x10).
  • Depositors that have a larger share of the LockBox than the Vault will still receive a x10 boost, but they will have “Boost Buffer” — meaning they continue to receive a x10 Boost until their buffer is eroded (by other staking in the LockBox).

Summary

The Boosting mechanism has been setup to ensure that loyal community members are not diluted going into the Public Launch of YOP. It also introduces a key utility for the $YOP token within the protocol — if you want a higher APY, buy & lock-up more YOP… simple.

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