yfSCAN earns from liquidity mining (yield farming) on other protocols.
When you stake your assets on yfSCAN, these assets are then used to farm on other farming protocols create yields. The yfSCAN smart contracts will choose and change to the highest performance assets on the most profitable platform while you relax.
The yfSCAN Advantage
The rewards earned on these assets are then used to ‘Buy N Burn’ yfSCAN in the market, reducing the supply of yfSCAN and increasing its value.
The yield generated from farming these assets are paid in-kind from the highest-yielding platform. Whenever a withdrawal is made, the smart contract calculates the profit and sends it to the profit pool, in which the assets are then split up into 3 distinct portions (47.5%, 47.5%, 5%) as follows:
1️⃣ - 47.5% ‘The Buy & Burn’: This is to purchase yfSCAN token from Uniswap to burn.
2️⃣ - 47.5% ‘The Compound’: This is to reinvest back into yfSCAN vaults to compound for more yield.
3️⃣ - 5% ‘The Rest’: This is retained in the governance wallet for development needs, future enhancements, and covering gas costs. Initially, gas fees will comprise a larger portion. However, as TVL increases, the portion will become smaller, allowing yfSCAN to allocate more towards developing and enhancing the project further.
🔥 Why ‘Buy n Burn’?
A simple burn function decreases the the total supply of the token in the market, while leaving it solely to the market to decide on the price trough supply and demand.
yfSCAN employs a ‘Buy N Burn’ mechanism, which not only burns tokens but actually BUYS yfSCAN coins from the open market. This creates perpetual buy pressure and therefore helps to increase token price and value for all holders.
Another distinct advantage of the ‘Buy N Burn’ is that the process is self-regulatory based upon the market price. For example, if there are 100 ETH available for the process and the yfSCAN price dropped 50% due to market conditions, the number of yfSCAN bought & burned would be double, creating upward pressure and increasing the price of yfSCAN.
yfSCAN only burns the coins bought back with the yield generated. The amount of yfSCAN in your wallet will not be affected, however its price should increase accordingly - 💲💲💲💲 cha-ching!
As time goes by, yfSCAN is compounding its capital by reinvesting 47.5% of the proceeds back into the ecosystem, which means that there’s more capital at work to create burns. 🐍The snake eats its tail and we all get 🤑. Simple :)
🚜🌾 return to farm 🚜🌾