It goes without saying that the long term success of the YDF protocol hinges on the ability to sustain all staking emissions. We believe the protocol and utility herein provides a means for not only sustainability, but profitability above and beyond. Much of the criticism directed towards YDF today is understandably pointing to the idea that our capped yield opportunity has never been and never will be (at least anytime in the near future) a real sustainable yield offered by any business or protocol to which we agree, however, this lacks a lot of details that are important to understand about the YDF protocol and all it has to offer.
First and foremost, our highest yield stakes make up a relatively small percentage of the overall yield being earned in the protocol. We have and will continue to do the math on the average APR across all stakes currently open, and ensure that average in addition to the overall emissions
We aggregate, calculate and update all emissions data hourly in both YDF and USD values, as can be seen on the YDF Dashboard. Product & feature adoption and value-adding/useful utility are important in ensuring we can have a normalized annual revenue that exceeds our emissions. As such, we are working on creating value for the market to ensure we're able to hit that sustainability metric.
Perpetual futures trading, which platform profit is dependent on fees from trades in addition to trader PNL. Because YDF is the counter party to all trades, as we get volume and ultimately (through data driven research) traders lose overall, the platform will generate a healthy and consistent stream of revenue to support yield.
Assuming we can gain anywhere from 15-20% of GMX's volume at a bare minimum, we believe futures trading fees alone will support emissions. The remaining utility and revenue we are collecting will simply add to and continue to support the protocol long term.
Yieldification NFT marketplace. We offer a rich, full featured, user-friendly NFT marketplace in the YDF platform to support users trading stake, perps, and other NFTs in the ecosystem to which the platform collects fees as platform revenue.
Over-the-Counter (OTC) trading allows users to buy / sell any ERC-20, ERC-721, or ERC-1155 tokens individually or as a packaged deal directly with other users. The YDF platform will collect a small transaction fee for each trade as added platform revenue.
OTC White Label lets any crypto project integrate YDF's OTC Platform into their own website for users to trade Pools and Packages. YDF receives a fee of 0.5% from all white label transactions, while the remaining 0.5% fee is split between white labeled partners.
Lending/borrowing against NFT stake principals is on the roadmap for Q2 and will also collect fees as added platform revenue.
Gamification: NFT Stakes
The NFT stakes in the YDF protocol that are earning yield are as valuable as the principal they hold and the APR they are earning at. The market will ultimately determine their value, but by not unstaking and having these stakes change hands without ever unwrapping the principal value keeps YDF out of circulating and reduces sell pressure in the end. We believe this new and improved idea of yield bearing NFTs presents another massive market that will keep the protocol sustainable through the revenue generated from these concepts.
NFT Stake Buybacks/Burns
Over time, as the protocol is ideally profitable and sustaining yield, we can and will buy stake NFTs off the market (particularly high yield ones) and burn them, effectively reducing long term emissions and further sustaining and protecting the protocol long term.
A history of the team's buybacks and burns can be found in the Project History section.