Reviewing Yield.is: solving the problem of volatility in profitability indicators.
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The Yield.is platform was created as a DeFi project with a predictable income level. The system is implemented using utility tokens (analogs of bonds) that are sold at discounted prices and then redeemed from holders at face value.
Thus, the problem of volatility in profitability indicators is solved. However, the team has not provided data on how the company generates profits. Despite this, the technology, proposed by the company, which is familiar to traditional financial markets, is completely new for the DeFi market.
The core mechanism of Yield.is
Suppose the platform issues 1000 bonds worth $100 each. A user can buy these bonds in November on the platform, the price of which is set at $95. The platform also indicates that these bonds will be redeemed in 3 months at a nominal price ($100). Thus, the user gets the opportunity to earn 5% on their assets in 2 months.
Calculation formula
0.95 = 1 / (1 + r), where r is the rate of return for this bond (in %); and 0.95 is the current discount level (this bond is being sold for 95% of its base price). In this case, the r value will be 0.05, i.e. 5%.
After staking tokens on the platform, the user receives synthetic tokens, which are analogues to bonds. They can be freely traded like any ERC-20 token until maturity in the OTC market.
In addition, the platform offers users the chance to participate in DAI - fyDAI liquidity pools, as well as to take out a loan on the platform at a relatively small percentage (about 5%) with the LTV level.
At the moment, the project is working in a test mode and provides very favorable conditions for users.
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