How the deflation work in YRD?
In terms of YRD the deflation will work slightly different than usual. The amount of YRD coins will increase over the time, but the assets per single YRD will only rise.
For example starting price YRD is 0.1 MATIC ~0.077$. That should give us approximately following assets per 1000 YRD:
0,0943 BNB
0,000601 BTC
0,0149 ETH
10 MATIC
125,8 TRX
13,4 ALPACA
After the year lets assume that the underlaying assets price do not changed and farming give protocol 10% ROI average every asset. That mean 5% will go to burn YRD, 3% to increase amount of tokens, 1% on governance YR burn and 1% fees. So we should have following value per 1000 YRD:
0,1018 BNB
0,000649 BTC
0,0160 ETH
10,8 MATIC
135,8 TRX
14,45 ALPACA
What give us the value ~0.084$ assets in vault per single YRD token without any change in price of vault assets!
From this calculation you can see you do not need to carry about total supply in our products, because value per single token will only rise, so it is deflationary schema.
Last modified 5mo ago