Buy & Burn
YELD tokens continue to decrease until it reaches 10,000 YELD
How it works
The buy & burn mechanism is implemented to appreciate the YELD token value over time in a simple and efficient manner.
A 1% of the deposits in the stablecoin pools is taken to be used for the Buy & Burn and Retirement Yield systems.
From that 1%, 98% of it is used to buy YELD on Uniswap. Then those tokens are burned, reducing the YELD circulating supply. Right after that, the token price is likely to increase because the Uniswap pool ratio has been shifted with fewer YELD and more ETH in the pool.
The other 2% from the 1% taken is stored in the Retirement Yield treasury contract to distribute to YELD token stakers.
The yield generated is for every 1 million in stablecoins, you get 50 daily YELD (adjustable based on Locked Value in the pools). For instance, if you stake 1000 DAI you'll get 0.05 YELD per day plus the daily APY generated from the stablecoin rebalancing system.
This mechanism continues in effect until there are 10,000 YELD tokens left in circulation. Thus, combined with the other mechanisms, will consistently increase the value of the YELD token for the entire ecosystem.
Arbitrageurs will balance the YELD token price on the other exchanges where users can trade the token.
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