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2022-05-27


Yield+ Blue Paper proposes a Liquidity Rewards Program for the EOS Network

yield-blue-paper-liqudity-rewards-on-eos

The recently formed Yield+ Working Group has published the most anticipated Blue Paper on EOS thus far. In it, the Yield+ working group proposes a Liquidity Rewards program to incentivize economic growth for EOS. This proposal will bring EOS to the forefront of DeFi (Decentralized Finance) which is widely considered as not only the driving force for economic growth on blockchain, but also its most innovative application to date.

Yield+ has recognized the value DeFi has brought to many other blockchain networks in this space and have analyzed the different ways such networks have benefitted. In its final assessment, Yield+ have concluded that -

β€œ... a liquidity rewards program designed to incentivize TVL in DeFi applications on EOS would be one of the most impactful drivers of network growth.”

Under this program decentralized applications (dApps) would be incentivized to provide liquidity to the EOS network by locking up their tokens to earn daily rewards at a proposed rate of 5% (annualized). The launch phase of the program will support EOS and USDT (Tether) as the only tokens considered for total value locked (TVL) calculations. DApps that meet the minimum TVL threshold qualify to receive/claim daily rewards.

Screenshot 2022-05-27 at 15.51.10

Launch Phase (Phase 1 of 3)

There are three products that are proposed by the Yield+ Working Group for the Liquidity Rewards Program:

  1. Yield+ Application Portal - a web-based platform that provides application protocols the ability to join the Yield+ reward system, review and edit their project application, and claim daily rewards.

The budget for this is $236,500 for the portal and $7,500 (monthly) for general platform maintenance.

  1. Yield+ Smart Contracts - (i) for the implementation of a Yield+ Rewards system that incentivizes DeFi protocols to retain long-term TVL within their application. (ii) Implementing an oracle system to support Yield+ in order to provide reliable TVL data metric of DeFi protocols and leveraging decentralized data price feeds from existing oracle providers on the EOS network.

The budget for this is $211,250 for Yield+ Rewards and $176,750 for Yield+ TVL Oracle.

  1. Yield+ Analytics and Reports - to provide participating Yield+ protocols with support to construct TVL adapters on Defi Llama; to enable the broader crypto community to visualize these TVL metrics. In addition, establishing a framework for evaluating and analyzing the performance of the Yield+ program.

The budget for this is $20,000 for analysis and reports, and $1,000 per protocol external adapter implementation. Both invoiced monthly.

The Yield+ Blue Paper takes into account the effectiveness of similar programs on comparable chains and demonstrates how those programs directly led to more and higher quality economic activity.

> β€œThe best designs from existing programs were reviewed, evolved, and adapted for use within the EOS ecosystem to meet the needs of the EOS community.”

For a detailed account of the proposed Liquidity Rewards Program on EOS please read: EOS Yield+ Blue Paper

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