VyFi intends to introduce Auto-Harvesting to Cardano, optimizing efficiency through a Neural Net. This system assesses risk in yield farms by analyzing impermanent loss and employing a self-improving algorithm to identify the most suitable farms for automatic harvesting.
The Vy Ecosystem comprises four interconnected components via smart contracts: the Auto-Harvester, the DEX (decentralized exchange), the Bar, and the LMS (Learning Management System).
- Auto-Harvester (AH): This smart contract manages yield farming and liquidity pool investments across various platforms. Users deposit Cardano into the AH to access a dashboard displaying deposit details, current portfolio value, and pending harvests. Rewards are distributed weekly, with 15% of all earnings allocated to the VyFi Bar.
- Decentralized Exchange (DEX): The DEX enables token swaps within the Cardano ecosystem and hosts pools for staking VYFI to earn other CNTs. The primary method for releasing 85% of the token supply is yield-farming, rewarding those who provide assets to liquidity pools.
- NFT Vaults: This feature allows users to stake NFTs for specific periods to receive different tokens in return. It was the first function launched on the DAPP.
- Learning Management System (LMS): Reflecting VyFi’s philosophy that DeFi is built to change the world, the LMS provides education on safely using DeFi products and managing crypto market participation. This layer aims to onboard new users and foster a community capable of navigating the space securely.
VyFi Bar Users can join the Bar by staking VyFi to receive a proportionate share of income generated across the Vy Ecosystem. Revenue sources for the Bar include:
- 15% of all earnings from the auto-harvester
- 15% of income from the proprietary trading firm
- 0.05% of all exchanges conducted on the DEX
- 6% share of all royalties on NFT sales
Tokenomics - VyFi
- Total Supply: 450 million
- Supply at launch: 7.15 million
Initially, a large supply supports extended yield-farming, with approximately 85% of the supply locked in yield farms. Emissions release this supply over 21 years.
Deflation: Staking at the VyFi Bar requires token ownership, creating inherent distributive income. A percentage of all fees and investment earnings is used to buy back tokens weekly, which may cause price inflation as platform usage grows. Additionally, yield farm payout ratios decrease over time, reducing supply.
The team holds only 2.5% of the supply, vested over 4 years.