EthereumYield, a farming coin focused on maximizing users’ profits
By Inkarias - 2020-11-26
As we mentioned in our previous articles dealing with the DeFi sector, the term yield farming can be illustrated by different activities, with significant annual interest rates depending on the risk of the project. To summarize what we explained earlier, the operating principle of Yield Farming can be summed up as an arbitrage technique. The latter consists of making money by playing with the rates of the different protocols and the different pools available. All while providing liquidity for loan or exchange such as Uniswap for example. Today we are introducing a newcomer to the market, the EthereumYield project, making it possible to generate passive crypto income both through farming ETHY through the provision of liquidity but also through a much better-known system, staking. The ETHY currency represents a total innovation by its nature to be a yield farming coin oriented for the community but also by providing a certain degree of "buy pressure" for a measured and sufficient liquidity over time. As stated on the official introduction: « ETHY's vault smart-contract executes strategies to maximize APY, reward holders, and punish weak-hands.”
The design and ergonomics thought for EthereumYield are a mix between all the innovation of the project vision with a throwback to the 90s and the first user interfaces. The image below shows the main interface of the product without the functionalities.
Origins and preparation
EthereumYield was launched in early November and achieved huge success during this first period by gathering around 2000 ETH in pre-sale (500 ETH soft cap and 2000 ETH hard cap) in a few days starting from November 16, 2020. During this phase, a total of 100,000 ETHY were listed for sale at a unit cost of 0.02 ETH. In order to ensure the progress of this sale under the best conditions while reassuring the investors, the team at the head of the project had already called on the entity Certik, a well-known and reputable crypto security company on the market, in order to verify all of the smart contracts running the ETHY ecosystem and its functionalities before the sale and launch.
The different features for passive income rewarding holders
Evaults are standard farming/staking pools operating with strategies defined on LPs. The goal of this solution is to maximize the return while maintaining a growing market if not stable thanks to the buyback function that we detail below. The Evaults source is based on the already existing SushiSwap distribution model and ETHY-ETH vault provides incentives to use LP and reward farmers over time. In order to keep a certain interest for the farmers and for the entire market, a « price pumping » mechanism has been implemented. As stated on the official website:
Fees generated by the deposited LP tokens on uniswap will periodically be withdrawn by the contract; ETH and ETHY will be returned; The ETH will be used to buy ETHY from uniswap, increasing the price, which is great for all holders. All surplus ETHY will be redistributed to the farmers and small admin fee will be taken. This pumping strategy may be updated over time to an even more aggressive protocol.
ETHY holders can deposit their assets in staking in order to benefit from an attractive return on investment varying from 5% to 297% depending on the conditions chosen. The use of this last opportunity is subject to a lock period during which the funds put into play in staking cannot be withdrawn. The range of choices available to investors is divided into 5 distinct offers :
11 days for 5% (If 1000 ETHY are staked, approximately 1053 tokens can be withdrawn at the end of the period) – Minimum
1 month for 12% (If 1000 ETHY are staked, around 1120 tokens can be withdrawn at the end of the period)
3 months for 40% (If 1000 ETHY are staked, around 1401 tokens can be withdrawn at the end of the period)
6 months for 101% (If 1000 ETHY are staked, approximately 2012 tokens can be withdrawn at the end of the period)
12 months for 297% (If 1000 ETHY are staked, around 3973 tokens can be withdrawn at the end of the period) – Maximum
Special feature: Weak Hands Tax
EthereumYield project introduced a new transaction fee, which serves two main purposes aimed at improving the community experience while using the products and especially the farming features. Firstly to discourages panic sellers and bots who might drive the price down, by taxing them, avoiding unnecessary price manipulation and movements on the market. This fee incentives to hold as it is being redistributed to the farmers, rewarding them for holding for long-term. This process is quite simple to understand as every token transfer is taxed.
Roadmap and future plans
By virtue of its decentralized nature, the ETHY project aims to allow the community and more specifically the holders of ETHY the possibility of choosing the future of the project by submitting proposals. Although centralized for the moment, the community will be able to fully ensure the consensus of the network when a sufficient number of actors are present, and the distribution is greater. Additionally, users who have locked funds in the main ETHY-ETH Evault will be able to vote.
New Farming opportunities
The ETHY team has already shared their wish and the direction of their work to provide new possibilities for farmers. Although currently small, the list of solutions to dispose of ETHYs and farm yields will be increased as the project announces and new partnerships with other players in the DeFi sector.
Short-Term Price Action (November 25)
After seeing an all-time-high of around 35 dollars, ETHY is now sitting around 21 dollars and is almost ready to make its next movement.
Token Name : Ethereum Yield
Token Symbol : ETHY
Total Supply: 500,000 ETHY
Features: Fixed Supply without minting function
Smart-Contract Address: 0xd1afbccc9a2c2187ea544363b986ea0ab6ef08b5
Marketcap: 3,150,064 dollars
Exchanges: ETH Pair on Uniswap: https://app.uniswap.org/#/swap/0xd1afbccc9a2c2187ea544363b986ea0ab6ef08b5
ETHY Official Links: