The DeFi Yield protocol has announced the launch of staking and governance protocols, a major step in the network’s development.
From now on, anyone is capable of providing liquidity to pools in order to get rewards.
The protocol’s users can also take part in the decision-making process by voting on future upgrades with the help of the recently rolled out governance dApp. Those with the largest amounts of the native DYP token will have the biggest say. While this might raise centralization concerns, this also bolsters the network’s security by preventing bad actors from infiltrating the network.
Like other decentralized finance projects, DeFi Yield is based on Ethereum smart contracts that cut out the middle. What makes the DeFi Yield protocol stand out is its anti-manipulation feature that converts all rewards into Ethereum.
As reported by U.Today, Chef Nomi, the pseudonymous founder of SushiSwap, sparked a ton of drama by unexpectedly exiting the project with 38,000 ETH from the dev fund wallet before eventually apologizing and returning the funds. In the meantime, SUSHI, the protocol’s native token, had a topsy-turvy ride when all these events were unfolding.
By automatically converting all rewards into ETH at midnight, the DeFi Yield protocol ensures that whales cannot pull the strings.
If some rewards remain undistributed over a seven-day period, the community will then vote on whether to remove them from circulation.
An entire DeFi ecosystem
The DeFi industry has taken a major reputational hit after numerous “rug pulls” when unaudited bug-ridden protocols get exploited and millions get lost.
By contrast, the DeFi Yield contracts have been audited by PeckShield and Blockchain Consilium.
The DeFi Yield has grand plans to build an entire DeFi ecosystem on its soon. Soon, it plans to add mining pools, offering miners a 10 percent monthly payout.
It remains to be seen whether the ambitious project will be able to compete with existing unicorns. The DYP token is currently trading at $1.75 on Uniswap.