LONDON, UK / ACCESSWIRE / October 13, 2020 / YFINANCIAL issues their first ETF-like index token powered by decentralised governance in October 2020.
The increasing interest in Decentralised Finance (DeFi) projects and the significant market shift towards decentralised digital assets has shaken the industry in recent months. With 11 billion USD locked in, this area of cryptocurrencies has attracted a large number of new investors, facing the complexity of smart contracts for digital assets for example in decentralised lending.
Y.financial enters the market this month with the first ETF-like index token, which can simplify this process for investors in a decentralised manner. It offers an index on four underlying assets, but also enables the community to decide in a decentralised way about these underlying assets.
Investing in the Y.Financial index allows for mitigating single token volatility along with automating any yielding opportunities. Optimising the token acquisition process both reduces risk and transaction related fees. YFINANCIAL has created a platform with a two-token model: YDOT and YFIN.
YDOT works as the governance token. During governance votes, the more YDOT tokens a user has, the more their vote is worth. Voting for governance also entitles holders for airdrop rewards proportionate to the number of YDOT being held. The YDOT token represents a decentralised way for investors to decide about the future of index tokens on the YFINANCIAL platform. The first index token will be YFIN, followed by others. All future index tokens will be up for votes via the YDOT token, so users of the platform can decide about their investments with decentralised governance.
YFIN is an ETF-like product which aggregates four top performing assets in DeFi into a tokenized index and underlying assets will be voted on at least once a quarter to decide if one or more of the underlying tokens are being replaced with a more appropriate token. The YFIN target price is pegged to the underlying Core4 tokens, which currently are: YFI, YFII, UNI, and SUSHI.
YFIN is the first of several index tokens. Over the next months, YFINANCIAL will release other index tokens to give investors a wide range of opportunities to benefit from further developments in decentralised finance.
This model includes several advantages. Users of this product not only benefit from an index as a value in itself, they also receive additional rewards, issued towards YDOT token holders. The governance model in itself contains another advantage: If the market decides to move towards other areas than for example yield-farming, investors in the index can simply use the YDOT governance to exchange underlying assets and move with the trends of the industry.
The YFINANCIAL platform has a testnet live since September 2020. The mainnet will be live in October 2020. With a very low initial supply, YFINANCIAL's governance token YDOT will be available from Friday, the 16th of October 2020.
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