Looped Demand for YEL
This page explains core elements of organic demand for YEL tokens and how our ecosystem creates a loop.
Outside of market conditions, there are a few key factors that will influence the YEL token price. One of these key elements will be constant buy pressure for YEL from:
- Equilibrium. The automated farming strategies performing on several chains allow users to benefit from highest APY returns. The protocol collects fees from farming rewards, hence generating revenue.
- Leveraged farming. YEL finance will be collecting fees from the leveraged farming positions at a performce based rate.
- dYEL reverse bonds penalties. 50% of the penatly will be distributed to YEL token holders in the form of staking rewards.
- Spectre listings and enhancement pools. Any project can apply for gathering the liquidity through YEL Finance. Some of the pools may be enhanced by YEL tokens as additional rewards. Nevertheless, there is a fee applied for any listings.
Since YEL will be traded and available on four networks at launch, this will present constant arbitrage opportunities for the savvy trader. Liquidity and farms on every network will help ensure there is enough trading volume as well as provide opportunities for pricing arbitrage across those chains. Being multichain by design, YEL also ensures more stable price chart movements, as any price dips or spikes will be balanced by such cross-chain arbitrage.
YEL is a Decentralized Autonomous Organization (DAO) and the YEL token is its governance token, therefore, all decisions and proposals will be agreed by the majority of holders. Buying and holding YEL grants users voting power. The more YEL held, the more voting power users have on proposals. YEL holders have an incentive to hold YEL tokens as well as farm additional tokens, so they would have more influence over proposals and can protect their farming interests.