I. Introduction | II. Progress | III. Conclusion
This is the eighth development blog providing an update on the progress of Yamfore. The goal of this blog is to keep the community informed of the team’s progress and to increase transparency throughout the development process.
Testnet V2 Development Progress
The team is making steady progress on the development of Public testnet v2. This will include all the features omitted from Public testnet v1, such as Orcfax oracle integration, CBLP auction portal, transaction history, and a smoother, more polished UI/UX.
Once Public testnet v2 is complete, the code will be sent for external smart contract auditing by Txpipes. This is a crucial stage that could take a varying amount of time depending on a number of factors, such as code quality, code complexity, and final code size.
The development roadmap has been updated to more accurately reflect our progress. This is a very conservative estimate of the time required to complete the development and launch of the product including a sufficient block of time for auditing and polishing. The team has come a long way and accomplished a lot, with the finish line finally in sight. You can see a visual summary of Yamfore’s entire roadmap above.
Yamfore Fair Token Offering Strategy
Since our announcement of the upcoming fair token offering event (FTO), there has been a flood of questions about the mechanics and details of the event. These questions have come from CBLP token holders who were concerned about the price impact of such a large influx of tokens entering the market, as well as from interested participants who were hoping to participate in the FTO for short-term or long-term monetary gain.
The team has remained silent on these inquiries, simply stating that the mechanisms of the FTO are still being finalized, but will be similar to the NFBO. In this blog post, we will discuss the team’s strategy for the FTO, as well as the rationale behind those choices. We will not be providing specific details about the time or duration of the event, but we will discuss the underlying process and incentive structure here. The exact details of the FTO will be released in a separate blog post closer to the date of the event itself.
The FTO is an important milestone in the launch of the Yamfore protocol. As the sole lender for any issued loans on the platform, it is important that the protocol has a sufficient amount of capital to attract users, provide liquidity in the CBLP market, and generate growth momentum from launch. However, the team is also aware that a significant number of current CBLP holders exist, and these individuals should not be adversely affected by the influx of tokens. After all, these are the individuals who have supported Yamfore since day one.
As a team, we faced a difficult challenge. On the one hand, we wanted to maximize the amount raised through the FTO event for the benefit of the protocol and CBLP holders in the long term. On the other hand, we had a duty to protect our current CBLP holders from any negative price impact due to the influx of tokens entering the market.
As we have unfortunately seen with other protocols in the space, recklessly releasing a large amount of tokens without a plan can have a devastating impact on the price of said token and significantly hurt token holders. We wanted to avoid this outcome at all costs.
Fortunately, we were able to come up with a solution that benefits both sides of the equation. The incentives for individuals participating in the FTO are maximized, while the price action of CBLP remains neutral to positive for current CBLP token holders. This was only possible due to the mechanisms of Yamfore itself.
- The first key element of this is that the FTO will run concurrently with the protocol’s mainnet launch. This has two primary implications:
First: Individuals participating in the FTO are investing in a working protocol that is ready to use from day one. This offers a more compelling narrative to potential investors.
- Second: All revenue generated from the FTO event is immediately utilized by the protocol, facilitating immediate growth for the native governance and utility token of the protocol, CBLP. Specifically, with the lending parameters of the protocol set at a 25% CBLP flat fee and a 50% loan-to-value ratio for the mainnet launch, a 50% return on investment (ROI) is received for any capital lent by the protocol. In other words, 50% of any amount raised by the FTO event is translated into direct buying pressure in the CBLP market. For example, if 5 million ADA is raised through the FTO, this would result in 2.5 million ADA of direct buying pressure in the CBLP market.
This strategy presents a win-win for both FTO participants and current CBLP token holders, striking a balance between the interests of both parties, and ultimately benefiting all parties involved.
The Fair Token Offering (FTO) event will take place on the “Market” section of the protocol upon mainnet launch. It will be conducted through the CBLP Auction portal, utilizing the exact mechanisms of the CBLP Auction portal as described in the Litepaper:
“ The distribution of the CBLP tokens stored in the CBLP treasury occurs through the CBLP auction portal. At the start of each epoch, a set amount of CBLP tokens are made claimable from the CBLP treasury. Individuals can deposit stablecoins to the CBLP auction portal in between epochs to be eligible to claim a portion of those CBLP rewards at the start of the next epoch. Those stablecoin deposits go directly to the protocol’s stablecoin treasury and are immediately lent out.
The wallet addresses of all stablecoin depositors are given the right to withdraw a certain percentage of CBLP from the total amount of CBLP tokens made claimable at the start of a new epoch. The amount claimable by a wallet address is directly tied to the total value of stablecoin deposits made by the wallet during the previous epoch, when compared to all other depositors. For example, if a wallet address was responsible for 1% of the total value of all deposited stablecoins sent through the auction portal within an epoch, versus all other wallet addresses, an equivalent 1% of the total amount of CBLP tokens set to be claimable for that epoch will be redeemable for that wallet address at the start of the next epoch.
The CBLP auction portal event is continuously occurring with rewards being calculated and claimable on a per-epoch basis. This CBLP auction portal takes a fair supply and demand-driven approach to token distribution, similar to that of the NFBO. “
In conclusion, the FTO represents the fairest and most transparent token distribution process for the Yamfore community. It is a win-win for all parties involved, striking a balance between the interests of both parties and ultimately benefiting everyone involved.
CBLP Tokenomics Adjustment
The team has made a final adjusted to the CBLP tokenomics, to maximize the amount of capital raised through the FTO event and ensure the community has a larger circulating allocation. The community allocation has been increased from 20% to 50%, and the misc allocation has also been increased. The treasury allocation has been significantly reduced due to the protocol’s token capturing mechanisms through the CBLP Treasury & CBLP Auction portal.
Team Vesting Schedule Adjustment
The Yamfore team’s vesting schedule has been pushed back to January 1, 2024, 3 months after the originally planned date of October 1, 2023. This was done to avoid any conflict with the upcoming FTO event. The first team token unlock of 82.5 million CBLP will now occur on January 1, 2024, and the second and final token release will occur on January 1, 2025.
The Yamfore team would like to express our sincere gratitude to our dedicated and passionate community for their constant feedback, support, and patience. We appreciate your willingness to work with us as we navigate these development hurdles. Your feedback has been invaluable to us, and we are committed to making Yamfore the best it can be. We appreciate your continued support and feedback as we work to bring Yamfore to mainnet.
🌎 Website: https://yamfore.com/
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🖥️ GitHub: https://github.com/Yamfore
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