Build YAM financial ecosystem and maximize the interests of YAM holders

Build YAM financial ecosystem and maximize the interests of YAM holders

Basic Summary
This proposal aims to assist the management team to clearly define the YAM development structure, and to maintain the best interests of YAM holders as the principle, with the goal of continuously expanding the YAM financial ecosystem.

Abstract
What exactly is YAM? Can’t say it clearly. A vision to the future, the decentralized financial system will surely become the mainstream of the world. Combining the Defi farm model with the characteristics of decentralized finance, with the unique “financial ranch” as the blueprint, YAM can be positioned as: “The decentralized financial ecosystem ranch in the digital world for the new century”. The financial ranch is to connect the current and future sub-projects planned by YAM with all kinds of products, and with YAM as the center, adding the concept of ranch elements to form a complete financial ecosystem. Upgrade to transform from farm to ranch in order to attract much more eyeball and money flow.
We are right in the wild west period of blockchain revolution!

Motivation
The Yam team works hard in developing variety of products. It’s affirmative. But the threshold of complex futures is too high for ordinary investors, and the trade volume is not large. The overall effect still needs to be improved. In particular, the horizontal links between products are blurred. The vertical linkage of the project is also not complete. The only interest linkage for YAM investors is the growth of the treasury. Lacks active benefit planning for YAM holders. In order to do it once and for all, there should be a complete plan that is in line with YAM’s short, medium and long-term development, so that the new and old investors of YAM “the more they hold, the more they cherish to sell”, and even to attract global institutional investors with an unique ecosystem.

Plan
Under the framework of YAM financial ranch, an unique mining model is planned to give YAM and its sub-currencies significant functions. Each plays an important role in the YAM ecosystem and interacts with each other in a positive cycle to continuously activate the ranch. YAM financail ranch can be an unique Defi.
There are four features of this plan:

  1. The innovative model of algorithmic stablecoin.
  2. Design a derivative sub-currency for YAM holders to mine.
  3. Collect ranch tickets from miner to increase treasury fund.
  4. Endow each token different functions , all are closely linked and inseparable.
    Two icons below can illustrate the above mode and ecosystem.

YAM ranch 1

▲ Description:

  1. Innovative algorithmic —
    At present, all algorithmic stablecoins rely on consensus, mining and speculative hype to maintain its price, non of them has real application.
    The algorithmic stablecoin planned in YAM financial ranch is named COW, and its innovative model is:
    When it positive rebases, it does not copy itself, but mints a new token CALF. The function of CALF is to be used as a product trading medium in YAM financial ranch, including insurance, futures products and all other newly developed products. Bundle CALF and YAM products as product payment or trading token.
    The more COW positive rebases, the more CALF will be minted; COW mints CALF at positive rebase, and the COW itself does not increase, but COW will decrease in negative rebase.
    The initial price of CALF is 1U, as it is not a stablecoin, the subsequent price is determined by the market.

  2. Derevative sub-currency mining—
    5,000 BoU YAM+50,000 BoU COW per week
    The current YAM mining is 5,000 BoU YAM per week, APY is not attractive enough. The new design is to add an algorithmic stablecoin COW as additional mining harvest, providing 50,000 BoU COW per week, but only YAM-ETH can mine YAM and COW at the same time. YAM’s harvest is calculated from the first day of mining, but COW is from the 15th day. YAM-ETH mining benefits will thus improves substantially, TVL will grow simultaneously, and YAM’s liquidity will also increase.
    The effect is that investors will buy YAM aggressively, and the positive cycle in YAM financial ecosystem will boost YAM’s price rising. Investors will not easily sell YAM under forseeing long term considerable income.

  3. Ranch tickets- estimated two-year total income is about 10,270,000 U
    Since YAM mining can greatly increase harvest, and COW can mint CALF in every positive rebase in the future. YAM Ranch has reason to collect 10% mining harvest from miners as a ranch entrance ticket. Even if the miner pays 10% of their harvest, the total gain is still much greater than before. Ranch ticket will be charged the equivalent value of ETH when miners withdraw mined coins. The tickets income will be injected into YAM treasury.
    With the deep stimulation to the market, and the fundamentals of the financial ranch is strong enough, which will cause large number of investors entering YAM financial ranch. The prices absolutely will get a positive effect.
    Based on YAM’s current development and the forecast of future growth, we can make the following predict models:
    ■ Mining income includes the following three items—
    a. YAM:Assuming that the price of YAM falls between 3~30 U in the first year, and 20~80 U in the second year.
    b. COW:Price will be stable at around 1U.
    c. CALF:CALF relys on COW ‘s positive rebase to be born, assuming the average scaling factor of COW is 5 in the first year, 10 in the second year; the price of CALF will be much higher than 1U due to application functions, assuming that its average price is 3U in the first year and 10U in the second.
    ■ Estimated income of ranch tickets—
    The first year:
    Total weekly mining value—
    (5,000 BoU YAM×2.5×avg 16U+50,000 BoU COW+20,000 CALF×avg 3U)
    =850,000 U
    The average weekly mining output value will be increased from the current 200,000 U to 850,000 U.
    Tickets income is 850,000 U ×52 wk ×10%=4,420,000 U
    The second year:
    Total weekly mining value—
    (5,000 BoU YAM×2.5×avg 50+50,000 BoU COW+45,000 CALF×avg 10U)
    =1,125,000 U
    The average weekly mining output value will be increased from the current 625,000 U to 1,125,000 U
    Tickets income is 1,125,000 U ×52 wk ×10%=5,850,000 U
    Total income of two years is 4,420,000 U +5,850,000 U =10,270,000 U

The advantage of this model is, miners and the treasury will greatly increase the income at the same time, and miners must be very happy to buy the ticket.

  1. Role in the ecosystem—
    Crypto currency must be endowed with functions and applications so that it will not be eliminated during market competition in the future.
    In YAM financial ranch, the most important currency is YAM. No matter how many currencies there are in this ecosystem in the future, YAM should be the only governance token to simplify governance and avoid excessive interference. COW’s function is to produce CALF at positive rebase, it is similar to cows fertilization and give birth to calves, allowing calves to form the front line in YAM ecosystem; CALF is the trading medium in YAM ecosystem, playing the role of first-line contact with the outside, and having vertical and horizontal connection function in internal relations. With the horizontal connection function, all products in the YAM ecosystem should use CALF as the sole token to trade with, or both CALF and ETH.
    In this unique ecosystem, most of COW must be obtained by mining with YAM, CALF can only be minted at the positive rebase of COW, and the price of YAM depends on CALF for a wide range of products trading. The interaction of these three makes YAM finacial ranch ecosystem alive. Constantly, the three also have a positive demand by market due to their respective functions, and prices will naturally rise.

▲ Benefits for YAM holde
Airdrop COW—
The maximum supply of COW is 8,000,000.
65% for mining, 50,000 COW per week、available for two year.
20% airdrop to YAM holders, approximately 12% distribution rate, according to YAM holding
ratio.
15% rewards for other contribution proposals to encourage community members to participate and contribute.

▲ YAM nature ecosystem cycle:
COW and CALF are the mother-son relationship. COW produces CALF at the positive rebase. YAM holders can thus get another new coin. The more COW and the longer you hold, the more CALF born to your pockets. Since CALF is not a stablecoin, its price will naturally be higher when its application is wider and liquidity is stronger. In order to get CALF, investors will have the motivation to continue to buy COW in the market to generate constantly positive rebase. The quantity of COW decreases at negative rebase, so the total supply of COW will only decrease, never increase. The less supply, the more precious , and the more rebase, the greater fortune.

In addition to airdrop, the way to obtain COW needs to buy YAM to mine or directly buy COW from the market. To obtain CALF, you must keep COW. The higher the liquidity of CALF, the higher the revenue of the treasury and the higher the price of YAM. The three are closely linked and inseparable. In the long term, the currency prices of these three most likely will continue to rise.

This ecosystem will eventually form The more coins you hold, the more you cherish to sell

Wanna get COW ? Be a cowboy !

This proposal will be voted on forum for 7 days and opinions will be collected.
If the vote passed, the proposal will be proper modified or will go to snapshop for voting.

Vote

1. About the overall plan of YAM financial ranch, you think–
  • for
  • against
  • I have other opinion.(Please state your view in reply)

0 voters

2. The issuance of algorithmic stablecoin COW and its design,—
  • for
  • against
  • I have other opinion.(Please state your view in reply)

0 voters

3. Collect tickets from miners in derivative sub-currency mining, —
  • for
  • against
  • I have other opinion.(Please state your view in reply)

0 voters

4. The application planning of CALF in YAM ecosystem,—
  • for
  • against
  • I have other opinion.(Please state your view in reply)

0 voters

1 Like

wow, decent thoughts.

  1. Has this been pitched to any other protocols?

  2. It changes the overall ethos of Yam imho.

  3. this is a form a dilution at outset and the numbers proposed may need to be adjusted if considered,

  4. the reward for proposers 3% is steep (devils advocate here; if template is proposed to multiple protocols it could be a tidy sum) even here alone ~240K cows

  5. 12% distribution rate, so if I have 1275 yam i get .0001 x .12 x 1600000 =19.2 cows airdropped as an example and these can be rebased away…

  6. you do realize we just got rid of Rebasing?

  7. how do you change the Free-Money(rebasing) market psychology?

  8. what is the % calf to each yam/cow holder…

9), there’s alot more than these few but i’ll wait

@byron111

You are the only one can respond to my proposal with deep questions so quickly so far.
I’m very happy to answer those.

  1. This is my personal startup BP, now I contribute it directly to YAM. Good thing is the success will be faster, but I will not be so rich comparing with my own startup.

  2. This is an aggressive plan and suggestion to YAM. How do you define YAM? I found the team has created many products, it’s wonderful. But each product seems no connection to another. I provide a blueprint for whole picture. It’s not change YAM’s overall feature, it’s upgrade.

  3. The new token doesn’t dilute YAM. It’s what the needs for an ecosystem. The team hire more professional people to work, it must be the YAM develops prosperously, the foresee income can cover the spending, not because to simply share the fund. That’s the same situation with creating sub-currency.
    The max supply has carefully considered the amount in providing mining need /airdrop/other, so I think the 8,000,000 is a proper amount. If you have better suggestion, of course it is flexible.

  4. You should consult some professional person who has rich experience in Venture Capital. Usually this kind of planning proposal can offer 5~10%. Trent said that before, 3% is proper ratio for rich contribution. I’m not sure if you noticed that or be here already.

  5. not correct. 20% of 8,000,000 is 1,600,000. Present supply of YAM is 12,771,841. 1,600,000÷12,771,841≒12.5.
    So if you hold 1,000 YAM, you will be distributed about 120 COW.

  6. I’m an early investor from YAM’s very beginning, quite familiar with YAM’s development. Yam abandons rebasing is because bundling tax with positive rebase, that caused investors try to always avoiding to pay the tax. The tax model hurt early investors too much, the shadow can not be got rid of from them.

  7. Algorithmic stablecoin is just like a meat chicken, you can only kill it once. What I designed is an egg chicken, it can lay eggs forever. COW will play an important role in YAM financial ranch: producing calves.

  8. COW ca be obtained by mining with YAM-ETH, or buy it from market, depends on your purchasing ability. If the scaling factor of COW is 2, it means the price of COW is from 2U to 1U, but the supply of COW is still 8,000,000, meanwhile 8,000,000 CALF were minted out to replace 8,000,000 COW suppose should have been issued.

  9. Thanks for reading this proposal so carefully, I think it’s not easy for most people.

@byron111

  1. The key of YAM financial ranch is the application of CALF.
    The team has developed many products, each of them need to mint a new coin then to buy the product. When you visit a playground, you need to change different coins for each product, don’t you think it’s too complex for tourists? If you just need to change one coin to buy any product inside, that would be much convenience. If the playground can be designed very interesting, you can attract tourists. It’s what the liquidity to support COW and CALF.
  2. This is a proposal. If it has finished coding, it will be a complete product. I should sell it, not to give a proposal here. Since it is a proposal, why it need to be funded first? It needs team work to work out the proposal.

Hanson, awesome write up! I love the names COW/CALF.
The primary issue that I see is utility and value.

Creating tokens is easy, having those tokens create more tokens is also easy, anyone can do it. The question is why do I want these tokens. Why do I think these tokens have value? You mention it in the quote above, but it’s not fully explained. Our products won’t be restricted to only accepting Yam or CALF or COW but it will accept other crypto as well like ETH / USDC / DAI.

The higher the increase in incentives the more people that will jump in, which lowers the APY. Mining incentives = inflation for everyone that isn’t mining, not a real value added item.

Not fully understanding the Ranch ticket idea.

Yes, this is what we need to address.

Awesome thoughts Hanson. There might be something here.

Feddas

Hey @Hanson, This is cool and I love all the thought that went into this. We are on the same page when it comes to thinking about ways to create new products that will work within the YAM ecosystem to make it better. I definitely see some parallels between the AYM idea I had and this.

With that said, I have a few thoughts about it and agree with some of the comments above about utility and value. As feddas mentioned above, what are the COW and CALF tokens really doing within the ecosystem?

My reading is that COW is a stablecoin and CALF is a derivative of that stablecoin that is released when COW is above peg. The issue I see is that this hasn’t solved one of the problems of rebasing. Namely that is isn’t really stable. In the COW/CALF situation, if you are below peg, holders are losing COW and their cow is less valuable, causing holders to sell. This is the death spiral that has been discussed a lot, and the original idea behind yam was to use the treasury to stop it. As we know this didn’t work out in practice, and the sale of YAM on the positive rebases caused additional problems.

If you release CALF on positive rebases, then this is kind of like normal rebasing, except it doesn’t have a mechanism to pull the price back down. If a higher COW price means I get more CALF, why would anyone ever sell COW to bring the price back to peg? The standard rebasing model is already a sub-optimal way to maintain a peg and I worry that this worse.

The above issues were why I was looking at a different model for AYM, where the new issuance of tokens when above peg, were sold automatically to bring the price down and then distributed over time to stakers, with the ETH gained used to help restore the peg when below the target. Even this probably isn’t enough to maintain a peg, so I proposed using YAM as an ultimate backstop to hold the peg (kind of like MKR).

In my opinion, the “product” here is a stablecoin that is decentralized and is useful for people outside of the YAM ecosystem. Using it within the YAM ecosystem helps with that goal, but it cannot be the only use. And requiring you use it in the YAM ecosystem is just friction that will limit adoption of our products.

I really do like the direction and ideas in your post. But I don’t think they will work the way you intend them to. I recommend you take a look at Gnosis OWL token and SpankChain’s Booty tokens to see how they have incorporated an ecosystem based stablecoin into their products. Neither has been a wild success, but they both work in a nice way within their systems. We could do better.

And here is my post about $AYM: $AYM: A YAM-Built Stablecoin and Revenue Token

@feddas

I have a brother-in-law live in Texas, that makes me thought of cowboy.

YAM financial ranch is typical America style, delivers a concept of wild west. It matchs the spirit of blockchain.

Imagine that, the playground can accept many different currencies, including USD、GBP、EUR、Yen. But only USD can have discount and some favorable. This encourage consumers to use USD.
Same situation happened in all exchanges like Binance、Huobi.

If YAM has only one product, there’s no need for new token. But YAM is gradually forming an ecosystem, YAM will be strong enough to lead investors to trade in specific way soon. What we lack of is strategy. When you build the second house、the third…in your wild pasture, you have to consider the roads in connecting different house and main building. How do you attract tourists? Providing fruits and vegetables for tourist to pick. Why not add some COW or even sheep? Ranch is popular than pasture. That would be more interesting. Tourists enjoy fun in ranch, they would love to pay the ticket. If you have a ranch picture, you know what you should do. Ugas、YDS、Umbrella just like all kind of experience activities in the ranch, we can also build restaurants、souvenir house. We just need creativity to transform those to financial product.

About the mining, have you ever thought that, why YAMv1 can lead a crazy trend? I heard someone mined 300,000 USDT at the first day. It made all investors crazy. People is always crazier than we think. More crazy people is the best promo. High value gets more flow of people, that’s what we need. And the miners will naturally balance the mine value. But before that, YAM has created a topic. YAM will be hot again with the topic, and hot news is the best promo which you can not even buy by money.

@rossgalloway

Sorry for late reply, I had a family birthday celebrating.
Thanks for reading my proposal in details.
Here’s my answer regarding your questions–

  1. CALF is the most important role in YAM ranch. We give it a practical function. A payment or trade option with some discount or favorable in YAM ranch. Tie all YAM’s products with CALF. Then it will be accepted by investors. The more need, the higher price.
    But CALF can only be minted by COW, that means investors need to keep COW, and need to make COW positive rebase to get CALF. The motivation forms a force to push COW’s price rising. If CALF can play it’s role well, then the demand will be on COW.
  2. The death spiral of YAM is quite different with all other algorithmic stablecoin.
    The worse situation of YAM is because treasury dump in positive rebase, especially the first positive rebase, investors were so panic to sell. That caused a disaster. Death spiral of YAM is because investors lost faith on YAM on that disaster. Oversold is the consequence, not the reason of death spiral.
    Whether positive or negative rebase, it relies on investors’ faith. If the investor think the token is valuable, it will have much chance to create positive than negative.
    Of course any algorithmic stablecoin will sometime has negative rebase, but that doesn’t affect it’s value. Even a champion will probably loss some games.
  3. A mechanism positive rebase should pull back down the price and to issue the equal ratio same token of COW. When the contract executes the mechanism to pull back the price, but follow a new cording to issue another equal amount of token CALF. It’s smart contract doing this, not by selling COW.
    A logic thinking, AMPL once touched 688 million now it’s mcap is between 250 million and 350 million. What’s the application of AMPL? YAM now is more useful than AMPL, if we create an algorithmic stablecoin with practical demand by market, what would COW be? Trent made a experiment, from heaven to hell within couple days, even YAMv3 created so many haters, but YAM is still here and incredibly getting better. This shows two signs—1. we need to adjust our logical thinking in crypto world. 2. We need to have a bold like bull.
  4. Thanks for providing your research. If I got some thought after reading that, I’ll talk with you again.

熊市没有任何代币,或者说任何模式能成为固定钉子!

看了两天这个模式,越看发现设计很完美。环环相扣,现在有个问题就是yam后面上线的几个产品,这个还在理论当中,实施计划需要很久了,时间上来不及了吧

感谢!耐心看完就能看得懂了!
但绝大多数人没耐心看,或只看到一小部分而无法从格局上仔细思考!
这个案子需要一段较长的时间规划,团队是否接受还不得而知,看起来不乐观,
因为思考的基点不一样。

这个方案如果不接受去实施,我对yam降彻底失望并抛弃,因为它所有的产品根本没有创新性,你越去了解他的产品,所有的都属于复制性,将毫无价值!也看不见远方!

I don’t really understand what CALF’s role is though? You mention that it is a payment token, but we don’t have any products that require direct payment. How do you imagine I would use CALF if I were to buy COW and mint it?

If COW doesn’t mint CALF during negative rebases, why would I hold it during that time and also suffer from negative rebasing? Rationally I should sell and buy back when it starts distributing CALF again. Holding when under peg is irrational. It would be better if COW only minted CALF when below peg. At least then there is a reason to hold it during contractions.

I don’t see any mechanism within your proposal that pulls the price of COW back down to the peg. Maybe this is a translation issue, but if COW only mints CALF on positive rebases, why would I ever sell COW when above the peg?

I’m all for bold plans, but creating another rebasing token with questionable economic parameters seems like a bad idea for a DAO that just stopped our last one.

@rossgalloway

Strategy! Strategy! Strategy!

  1. CALF is used as a payment token or trading medium.
    For example, customers need to pay for buying umbrella insurance, we can offer options—ETH/USDT/CALF, but only CALF can get discount. The same for other products.
    We have to think strategy first, then products. IF the products have been created, then the strategy is to connect all those products. CALF is the connection.
    Most of the time, people doesn’t really know what kind of product they need. If you ask a guy in 18 century, what kind of transportation you want? He probably would answer: I want a fastest horse. But Jobs would create a car for consumer, far better than horse.

  2. Give candy in negative rebase is a very strange logical thinking.
    The more COW I hold, the more CALF I can get on positive rebase. So every investor will try to push the price higher and higher of COW. If I can only get CALF on COW’s negative rebase, that means every investor should sell their COW token to dump the price, it’s anti-humanity logical.

  3. ” I don’t see any mechanism within your proposal that pulls the price of COW back down to the peg. Maybe this is a translation issue”–Yes, it’s a misunderstanding of translation.
    The accurate decription is, when COW is on positive rebase, it does not split itself but to create CALF.
    “creating another rebasing token with questionable economic parameters seems like a bad idea for a DAO that just stopped our last one”-- Disagree!
    The fact is:Yam rebase system was a bad economic model.
    (Tax & dump + no practical feedback to early investors who paid the tax = massive haters)
    What the investors quit is the bad rebase system of YAM, not normal rebase.
    The real topic we should discuss is: What can we use the rebase characteristic for application?
    Algorithmic stablecoin will not vanish, but AMPL will be most likely the always symbol, because it’s the first token. IF we create an innovative algorithmic stablecoin, quite different from normal, then COW will be a new sign forever.

Only few smart guys in this community I see. Trent is one of them, leading the team to develop many products. After had abolished the particular but annoyed rebase system of YAM, now YAM is healthy. We just need a whole strategy.

是的,目前虽然项目在进行中,但是给人一种杂乱的感觉,你会发现每一个项目都没有新颖,所有的产品市场都有,而且都是专一的。
我们需要一个整体方案,目标!

谁来答疑解惑,yam现在区块链的目标是什么,独特性是什么?我们应该去向何方?
我需要了解一下,谢谢

这需要团队成员回答,最好去discord发问较妥。

I like the idea of a token that pays out rewards in a token that can be used in the YAM ecosystem for a discount. I am just not convinced by the mechanism you are proposing.

If COW is a stablecoin, we want investors to sell COW when the price is above a dollar and buy it when it is below a dollar. In my opinion, current rebasing tokens have this backwards. Minting CALF when COW is below peg gives a reason for people to buy it then. This is similar logic as investors in the new algorithmic stables buying bonds for cheaper future tokens. in the new algo coins, burning supply is just a proxy for increasing buy pressure.

You could also conceptualize this as a funding rate. When the token is below peg, the funding rate is positive and pays you (via CALF) to hold the token. When the token is above peg, the funding rate is negative and charges you to hold the token (via negative rebase).

While the “tax” on YAM previously was a problem, in my opinion it is not the main issue with rebasing tokens. I will admit that I think rebasing tokens like AMPL are dumb and will fail without significant modification. The tax on YAM was a step in the right direction, but there was no income to balance out that tax. That is why it failed.

In the end I think we may have to agree to disagree on this. I have laid out my points and you have laid out yours.

Totally agree, this is the healthy communication and debate.
There’s key point no one ever asked me, I’ll keep it in my pocket.

1 Like