Activating YLD’s Utilities and Buy-back & Burn
Starting today, you can finally take advantage of utilities YLD offers on Yield. While you could already do this since Yield’s launch last week, there was no user-friendly interface to make this practical.
You’ll see the “Discount” toggle on every confirm modal in the app starting today — hard refresh the app to see changes. Once activated (as in the image above), the fee charged reduces from 1% to 0.75% for borrowers (borrow requests) and from 7.5% to 5.625% for lenders (lending offers). Activation requires staking, at this time, 50 YLD in the discount contract which is locked for a minimum of 4 weeks*. This is what happens when you click the “Discount” toggle and it remains active for the entire staking duration. After the lock duration elapses, you can deactivate the discounts by clicking the toggle again, transferring your stake back to your wallet.
*if you’re staking and you start a new loan but the time left for your stake to unlock is < the duration of the new loan, the lock time gets updated to 4 weeks + loan duration
Activating discounts also enables the 2 other utilities explained here — lower liquidation ratios and increased YLD earned per loan.
As explained in the article linked earlier, YLD is a burnable token. 100% of the fees charged on the platform are used to buy-back YLD from the market and burn it (bb&b for short). Similarly, and perhaps not too obvious, the unstake fees from the Gardens — Yield’s liquidity incentivization program — are also used to buy-back YLD and burn it. The first YLD bb&b will happen in the coming week, primarily using the fees accumulated from the Gardens so far.