Problems
This section will highlight the issues with the current DeFi ecosystems.
Inflation and unsustainable APRs affect the majority of the DeFi space. In the early stages, DeFi protocols attract users with incredibly high APRs, which as the number of stakers grows, starts to decrease, leading to a decline in interest level. These economic models lead to a steady drop in trading volume and high token inflation which cannot be covered. Token devaluation will increase at an extremely high rate.
Nowadays most of the DeFi ecosystems are unsustainable because of their inadequate revenue distribution, which means that even as interest increases they can only generate diminishing returns.
The demand increasing rapidly from consumers in the crypto market for developments with comprehensive economic models.
The above-mentioned problems have recently been addressed by a number of projects under the heading of real yield, which is still only marginally achieved.
After researching the options presented by competitors, we determined that we needed to build an economic model that maximizes revenue flows. That's completely separate from the previous continuous token emission and inflation methods because the Yieldz system does not include a mint function, it is focusing on the most optimistic use of the rewards generated by the protocol.
In the following document, we will demonstrate the Yielzd ecosystem, which is based on real-yield solutions, to solve the following problems:
▪️ Token inflation
▪️ Decreasing and uncovered APRs
▪️ Unstable revenue flows
▪️ Unpredictable movements
▪️ Selling pressure
▪️ Sustainability
Last modified 7mo ago