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USDy
A reward token that combines Growth, Stability, and Sustainability.
We're all about sustainability, which is why we've designed USDy to be a long-term solution for incentivising participation in our ecosystem.
Our protocol has been specifically created to ensure that USDy liquidity will continue to increase, even in the face of sell pressure. Like a snowball gaining momentum. How do we do it, you ask? Well, our protocol not only boasts a Price Stability Model, but it also has the ability to create USDy-USDC Treasury-Owned Liquidity autonomously. And we didn't stop there - we've also incorporated an innovative Buyback and Burn feature (UBB) that actively works to stabilise the price of USDy.
But wait, there's more! During UBB activation, the Incentive Buyback mechanism (UIB) kicks in on every purchase of YSL using ChainZap. This clever mechanism uses 100% of the sent USDC to purchase and burn USDy equivalent to 175%, and as a bonus, you'll receive a complimentary 25% USDy for each purchase. It's like getting a free side of fries with your burger, except way better.
This ultimately creates a positive feedback loop that not only increases the demand for YSL, but also raises the price of USDy while reducing its supply.
So there you have it - our protocol's unique ability to autonomously generate USDy liquidity, paired with its innovative UBB and UIB mechanisms, ensures USDy is not just a flash in the pan - it's here to stay. So why wait? Join our community today and start earning with USDy.
Thanks to our unique protocol, we're able to generate Treasury-Owned Liquidity for USDy at every point of user interaction. As more users join our ecosystem, USDy's liquidity grows autonomously, like a snowball gaining momentum. But that's not all! It also features our USDy Buyback and Burn mechanism (UBB) that will counteract the negative impact of selling pressure.
Here's how it works: The UBB is activated every 4-epochs if the USDy-USDC pool price falls below $0.95. During this time, a portion of the tax from every trade of YSL, xYSL, bYSL, and USDy will be used to purchase and/or burn USDy. And that's not all - 15% of every HydraVault deposit will also be used to purchase and burn USDy. The result? Reduction in USDy supply and an increase in price, which is great news for you as a USDy holder!
The USDy Incentive Buyback (UIB) mechanism is another piece of the puzzle when it comes to stabilising the price of USDy. Not only does it incorporate a 25% incentive to purchase YSL, but it actively reduces the supply of USDy in the process. Talk about killing two birds with one stone!
So, how does it work? Let's break it down. Firstly, the UIB performs an automated buyback and burn of USDy from the USDC received for every YSL purchase. And in return, the user receives YSL as well as a juicy 25% bonus in USDy. But you've got to act fast, as the UIB is only in effect while the UBB is active and USDy is trading at a maximum of $1.05.
Let's say you decide to purchase YSL with USDC while the UIB is in effect. Here's what happens next: the protocol will use the USDC to buyback and burn USDy, which in turn increases the price of USDy. Subsequently, an equivalent amount of USDC and USDy is withdrawn from the treasury-owned liquidity. Next up, 75% of the withdrawn USDy will be burnt, reducing the supply and further increasing the price of USDy. The remaining 25% of USDy will be sent to you as a bonus. And finally, the USDC will be used to purchase YSL, either from the YSL-USDC liquidity pool (with zero taxes) or from the protocol that includes a 10% mint tax, whichever route returns you the most YSL.
The UIB mechanism not only rewards you with a 25% bonus when you purchase YSL, but it also actively works towards stabilising the price of USDy by reducing its supply - a win-win situation for all involved!
- USDy Incentive Buyback (UIB) -> A strategic incentive mechanism within the ChainZap liquidity aggregation protocol aimed at boosting the value of USDy.
- USDy Buyback and Burn (UBB) -> An essential mechanism that ensures USDy price stability. By initiating automatic buybacks of USDy, the mechanism helps counteract selling pressure and supports the token's value.
- Price Stability Model (PSM) -> A state-of-the-art mechanism that has been designed to help stabilise the price of USDy.
- USDy HydraVault -> 60% of every deposit made into the USDy HydraVault creates the equivalent of 120% USDy-USDC treasury-owned liquidity.
- HydraVault Ecosystem Allocation -> 37.5% of every deposit made into the HydraVaults creates the equivalent of 75% USDy-USDC treasury-owned liquidity.
When activated, the protocol will redirect certain revenue to decrease the circulating supply of USDy. These include:
- 1.YSL Token Tax -> Three-quarters of the YSL mint/burn tax will be used to purchase & burn USDy, and the remaining tax is sent to the team.
- 2.xYSL Token Tax -> Three-quarters of the xYSL transaction tax will be used to purchase & burn USDy, and the remaining tax is sent to the team.
- 3.bYSL Token Tax -> Three-quarters of the bYSL transaction tax will be used to purchase & burn USDy, and the remaining tax is sent to the team.
- 4.USDy Token Tax -> One-third of the USDy transaction tax will be burnt, and the remaining two-thirds will be split equally, with one-third being sent to the Treasury and one-third being used to purchase and burn xYSL.
- 5.HydraVault Deposits -> 15% of every deposit is used to purchase & burn USDy, 5% will be sent to the team, and the remaining 80% will be redeployed to create protocol-owned liquidity.
- 6.USDy-BUSD Treasury Owned Liquidity -> If the USDy buyback and burn function is activated, the protocol will mint new USDy in proportion to the USDC component, and any excess USDC will be used to purchase and burn existing USDy from the USDy-USDC liquidity pool.
Please note: Upon activation of the USDy buyback and burn mechanism, withdrawal capabilities for USDy AceVault and all HydraVaults and AlphaVaults will be temporarily restricted to 1% of the users' vault balance. These restrictions will be lifted upon deactivation of the buy-back and burn function.
Last modified 5d ago