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Here we shed some light on the most commonly asked questions. For more extensive detail and documentation, check out our Docs site.
Frequently Asked Questions (FAQs)
What is YOP again?
A clean and easy-to-use DeFi interface that lets you earn unbeatable passive income on your crypto with just a few clicks.
What is APY?
Annual Percentage Yield or APY is the actual rate of return that will be earned in one year if the interest is compounded. Compound interest is added periodically to the total invested, increasing the balance. That means each interest payment will be larger, based on the higher balance. You can boost your current APYs by purchasing YOP tokens and locking them in the “Lockbox” on app.yop.finance/staking.
What is DeFi?
DeFi or decentralized finance allows for trustless financial processes such as passive income to take place in an open environment, without the use of intermediaries. No intermediaries mean more passive income available for you.
What is yield farming?
Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for their services.
What is staking?
The process of ‘locking’ a certain amount of YOP tokens into our “Lockbox” for a certain period of time between 1-60 months, to get passive income on those funds. Think of it as a time deposit on your fiat. To boost the APY you get on your deposited crypto you can buy and stake YOP token in the YOP “Lockbox” located at app.yop.finance/my-yop.
Apart from boosting your APY, staking YOP also brings you a secondary benefit of earning a share of performance and management fees as well as community emissions. The longer you stake the YOP tokens, the higher the fees.
Apart from boosting your APY, staking YOP also brings you a secondary benefit of earning a share of performance and management fees as well as community emissions. The longer you stake the YOP tokens, the higher the fees.
Is YOP secure?
You bet. Our smart contracts are audited by the most reputed smart contract auditing houses globally including Hacken and BTCBlock Audits. Over 10 people security team is engaged on a permanent basis to keep everything running smoothly.
We don’t use freelancers and consultants to run our security backbone. We even deploy our own funds into the protocol to maximize yield on the operational liquidity we don’t currently need. This literally means putting our money where our mouth is.
We don’t use freelancers and consultants to run our security backbone. We even deploy our own funds into the protocol to maximize yield on the operational liquidity we don’t currently need. This literally means putting our money where our mouth is.
How is YOP able to give me such a high passive income on my crypto?
We manage to bring you up to 65% APY in a completely compliant way. No shady smart contracts, everything is audited, plus your funds are insured. You earn APYs simply by locking your crypto in one of our vaults and then our algorithms do their job.
To boost your APY, you can stake YOP, our native utility token for a fixed period of time. To get the juiciest APY, make sure you buy and stake YOP tokens on app.yop.finance. The APY booster will depend on the amount of YOP tokens you stake and the duration those tokens are staked for (between 1-60 months).
To boost your APY, you can stake YOP, our native utility token for a fixed period of time. To get the juiciest APY, make sure you buy and stake YOP tokens on app.yop.finance. The APY booster will depend on the amount of YOP tokens you stake and the duration those tokens are staked for (between 1-60 months).
Is YOP better than traditional centralized alternatives such as BlockFi?
With the likes of BlockFi you don’t know what is happening under the hood. You don’t know what the risks are, and you don’t know what fees are being charged.
Is YOP better than do-it-yourself DeFi platforms such as Aave?
Platforms like Aave are more expensive and more time-consuming to research the best approach in earning yield. YOP combines the easiness-to-use of a centralized platform with radical transparency and decentralization of do-it-yourself DeFi platforms.
What does the tokenomics behind the YOP token look like?
For an extended overview, we recommend reading our whitepaper. In a nutshell, there is a cap of 88.88 million YOP tokens where 24 million tokens are reserved for community emissions – representing 27% of total supply and 1% reducing balance emissions over 10 years. As tokens from emissions decrease over time, tokens purchased from fees will increase This leads to a sustainable token economy over the long term. Token Burn for a combined monthly token quantity of over 400k tokens.
How does APY boosting work?
Boosting is mechanism used to increase your returns in the Vaults and it is derived from the ratio of your Vault deposits and your staking balance in the LockBox. To achieve maximum boost, you need to maintain a balance between your share of the YOP LockBox and your share of a Vault. The closer this ratio is to 1:1, the more $YOP rewards you will receive on your Vault positions.
Before explaining the Boost, it's important to highlight that the returns for each Vault is made up of two key components:
Base APY: This is the return generated from the underlying strategies in the vault and is denominated in the deposit token (e.g. USDC for USDC Genesis Vault). There is no "claim" option for these returns as they are automatically re-invested into the strategies on behalf of the depositors. When it comes to withdrawing funds, users will see an increase/decrease in their deposit tokens - depending on the Base APY generated from the strategies.
Reward APY: This component is completely separate from the return generated from the underlying strategies, and is always denominated in $YOP. A portion of community emissions (see Emissions Schedule) is allocated to each Vault and the share of each depositor depends on the mechanism used by the YOP protocol to distribute emissions.
In the Private Launch phase of YOP, the Reward APY component of the Vault solely depended on a depositor's share of the vault. For example, if John's Vault position was 20% of all the funds in the Vault, then he would receive 20% of the emissions allocated to the Vault.
For futher information on Boosting, how boosting works, the formulas and working examples, check out our Docs site.
Before explaining the Boost, it's important to highlight that the returns for each Vault is made up of two key components:
Base APY: This is the return generated from the underlying strategies in the vault and is denominated in the deposit token (e.g. USDC for USDC Genesis Vault). There is no "claim" option for these returns as they are automatically re-invested into the strategies on behalf of the depositors. When it comes to withdrawing funds, users will see an increase/decrease in their deposit tokens - depending on the Base APY generated from the strategies.
Reward APY: This component is completely separate from the return generated from the underlying strategies, and is always denominated in $YOP. A portion of community emissions (see Emissions Schedule) is allocated to each Vault and the share of each depositor depends on the mechanism used by the YOP protocol to distribute emissions.
In the Private Launch phase of YOP, the Reward APY component of the Vault solely depended on a depositor's share of the vault. For example, if John's Vault position was 20% of all the funds in the Vault, then he would receive 20% of the emissions allocated to the Vault.
For futher information on Boosting, how boosting works, the formulas and working examples, check out our Docs site.
Who is the team behind YOP?
Unlike most DeFi protocols the team behind YOP is publicly available info. Hop on to our Team section to find out more about the team behind YOP.