I. Introduction | II. Progress | III. Conclusion
This is the sixth development blog detailing the development progress of Yamfore. This development blog aims to update the community on the team’s progress and provide greater transparency throughout the development of Yamfore.
The team has been hard at work tackling the off-chain issues we initially faced leading up to the unfortunately delayed public testent launch. We’re happy to announce that we’re making significant progress and feel confident in announcing a tentative date for the rescheduled testnet launch soon. Furthermore, we’ve also been fortunate enough to refine several aspects of the protocol design further improving the value offering for the borrowers, as well as streamlining and simplifying development efforts.
Fixed Interest Repayment Scheme
The Yamfore protocol now utilizes a fixed interest repayment scheme that is controlled via on-chain governance. The interest rate charged to a borrower’s loan position is a simple yearly fixed figure. Any accrued interest on a loan position is calculated and added to the debt of the loan position, on a per epoch basis. This means that loans on Yamfore turn from “no interest repayments” to “no ongoing interest repayments”
Eg: A 7% yearly fixed interest rate on a $100,000 loan would be $7,000 worth of interest added to the borrower’s debt per every year the loan position was still active. This would equal $95.89 ( $7,000 / 73 = $95.89 ) worth of interest charged to the loan position per every passing epoch.
A borrower now has to pay back the owed principal amount, as well as any accrued interest, before their loan position can be closed, and their deposited $ADA & $CBLP collateral can be made redeemable to them. The initial fixed yearly interest rate launching with the Yamfore protocol has yet to be decided.
Loan Repayment Simplification
Borrowers will now be able to directly repay their loan via an accepted stablecoin solution. This change negates the requirement of a borrower’s deposited ADA collateral appreciating by a 10% surplus, removing unnecessary complexities for the protocol design as well. This change now requires a borrower to pay back the owed principal amount, as well as any accrued interest, before their loan position can be closed, and their deposited $ADA & $CBLP collateral can be made redeemable to them. This streamlines development and improves the borrowing experience for the end users, negating the unnecessary premium of borrowing through the protocol.
Liquid Staking in CDP
The staking credentials of a borrower’s wallet initiating a loan position will be applied to their deposited ADA collateral. This means that whilst the protocols smart contracts maintain full custody of the users deposited ADA collateral, the borrowers wallet address still retains control of the stake, and remains the recipient of any accrued ADA staking rewards. This allows borrowers to simultaneously participate in ISPOs / incentivized staking events whilst retaining their loan position in the protocol.
( This is a very similar approach to the implementation by the Indigo Protocol )
CBLP Auction Portal > CBLP Staking Portal
The CBLP auction portal represents a significant step forward in improving the scaling capabilities of Yamfore. This mechanism has now made the CBLP staking portal redundant.
The CBLP auction portal provides a more direct method of capital influx to the protocol, as well as providing greater & faster monetary returns for individuals participating, vs the CBLP staking portal. The protocols liquidity treasury enables individuals to indirectly provide liquidity to Yamfore via depositing their stablecoins into the protocols $CBLP auction portal. In return, individuals will acquire an allocation of $CBLP tokens below market value, all determined through fair market supply / demand mechanisms. The $CBLP auction portal event is continuously occurring, with $CBLP token rewards being calculated, distributed, and redeemable, on a per epoch basis, at the end of every epoch until the liquidity treasury is depleted.
A fixed amount of $CBLP tokens are continuously distributed at the end of every epoch. These $CBLP tokens are distributed amongst all depositors in the $CBLP auction portal, in proportionality to their deposited stablecoin amount. This means the payment amount a depositor receives is directly tied to the raw value % of their deposited stablecoins in the auction portal, in comparison to all other depositors. For instance, if a depositor owns 1% of the total value of all deposited stablecoins residing in the auction pool, an equivalent 1% of the entire amount of $CBLP tokens set to be distributed for that epoch, will be fully rewarded to that depositor as payment.
This system takes a fair supply & demand driven approach to token distribution, similar to that of the NFBO. Similar to earning ADA staking rewards, the $CBLP auction portal event occurs on an epoch basis, with rewards being calculated and distributed occurring at the very end of an epoch. All acquired $CBLP rewards are available to be withdrawn at any time by the depositor, with any earned $CBLP rewards that haven’t been withdrawn yet, simply accumulating passively until withdrawn.
Yamfore utilizes a unique and novel approach to governance titled Progressive Governance. Progressive governance aims to enable more participation in decentralized governance by simplifying the process and removing the multiple points of friction, and hurdles the average DeFi user experiences when attempting to participate in the process. Progressive governance also aims to entirely eliminate the multiple centralized points from the governance process, eg: Third party forums, Social Media Platforms etc
Progressive governance puts a heavy emphasis on on-chain governance, aiming to be an autonomous and neutral system governance model fully controlled by $CBLP token holders.
The team would like to thank our dedicated and passionate community for their constant feedback and support. We are also appreciative and thankful for your patience and bearing with us, as we get through these development hurdles. Lastly, please be on the lookout for the announcement date of the revised testnet rollout.
🌎 Website: https://yamfore.com/
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