Overall Design

Overview

YYY is a collateralized, yield-bearing, fully redeemable ERC-721 token backed by a share of the total value yielded by a community-owned liquidity pool.

How does YYY work?

As a core fundamental, each YYY is equally collateralized by a share in the YYY Pool.

In its turn, YYY Pool is the community-owned liquidity pool that accrues and yields the collateral for YYY. The pool is fractionalized into 2,000 0.05% shares (i.e., 100% of the pool TVL), mirroring the supply cap of 2,000 YYY. The collateral value of each share represents the base price of each YYY, at a 1:1 ratio; being fully redeemable after a fixed 365-day maturation period.

x = YYY Collateral; z = YYY Pool TVL; y = YYY Total Supply

Yield-Bearing

YYY is bootstrapped with 2,000 ADNEO pooled as collateral (i.e., 1 YYY = 1 ADNEO).

After a 365-day maturation period, each YYY ends up collateralized by 7 ADNEO (with YYY Pool ending up accruing 14,000 ADNEO). This provides to YYY collateral an economically sustainable 600% APY interest.

Oracleless

YYY does not rely on any third-party oracle for its fulfillment. This means that YYY is oracleless (or “oracle-free”), having its market price fully arbitraged by YYY holders over market forces — with YYY holders always relying on the x% share in the YYY Pool and its underlying value as the base (floor) price of each YYY.

As a result, the market price of each YYY can be freely traded with a premium, i.e., above the x% share in the YYY Pool.

A comprehensive panel that gauges the YYY and YYY Pool stats can be found in the Adneo Dashboard.

Collateral Redemption

After a 365-day maturation period, YYY holders redeem their share (or “position”) in the YYY Pool at a 1:1 ratio. Learn more

Last updated