Transition to Binance Smart Chain & Yield Bank’s Liquid Level Calculations
The iYield Team is excited to announce to you the addition of Binance Smart Chain (BSC) to the supported networks of our project as well as showing you the Liquid Level (LL) and other calculations related to our permanently locked liquidity pools. Yield Bankers, let’s get to it!
Ethereum Network Congestion
With the current rise in both ETH’s price and increased usage of ETH, the network is becoming critically congested. Nobody wants to pay over $300 in gas for a simple Uniswap trade, or 0.4 ETH to interact with a smart contract. Fees are reaching comically unsustainable prices in the last few days and in the long-term, this is threatening to any project deployed and reliant upon the ETH network. Currently, many users are “priced out” of interacting with and/or using ETH and the projects ETH Network supports, which goes against the core beliefs of not just our project and DeFi, but the idea of cryptocurrency in general.
We have seen the ETH Network experience congestion and high gas prices in the past, but the current situation seems fatal enough that we have to act to ensure the safety of our project and smooth operation of our yield farming, vaults and automated trading strategies, Liquid Lend as well as ensuring that our platform can run smooth with minimal fees incurred to our users.
Binance Smart Chain Transition & Deployment
Yield Bank’s platform and all of its smart contracts and functionalities will be co-deployed onto Binance’s Smart Chain (BSC) as soon as it is feasible to do so. Currently, this is scheduled for the end of March or beginning of April.
The Round 2 of our Liquidity Episode will be still done on ETH as it is already deployed and currently undergoing, as to not put user’s funds at risk or make the transition of switching chains mid-sale confusing for our users.
Liquid Level Calculations
With the model of permanently locked liquidity, every dollar of ETH, yB or yCASH contributed to our ETH-yB and ETH-yCASH liquidity pools raises the Liquid Level of the tokens. Liquid Level can be seen as a price floor of sorts, as in the price cannot go below the respective Liquid Level number calculated using the formulas below.
VLP = Value of LP Token
VETH = Value of ETH in a pool denominated in USD
VyB = Value of yB in a pool denominated in USD
LPmax = Total supply of LP Tokens for the respective liquidity pool
ETHleft = ETH left in the respective liquidity pool after yBout is subtracted
ETHpool = Amount of ETH inside the respective liquidity pool
yBout = Number obtained by selling all yB circulating outside the pool to ETH in one swap on Uniswap
VLPLL = Liquid Level of LP Token
PoolLL = Liquid Level of the respective liquidity pool
yBLL = Liquid Level of yB
The calculation works for any Uniswap v2 pair that is following the fully, permanently locked liquidity model.
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The article and any other associated content of Yield Bank does not constitute as financial advice. Cryptocurrencies are a high risk investment and may not be suitable for all members of the public and all types of investors. This is an experiment in DeFi yield aggregating to bring longer and steadier yields to its users.
Next article coming up: TBA
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Liquidity Episode Round 2 date: Live now!