yNFT Protocol
Essential information on the Yield Generating Protocol for NFTs (yNFT)

What is yNFT?

yNFT is the Yield Generating Protocol for NFTs. Having learned immensely from the contributions at YFI on providing users with access to the highest yields on deposits of ether, stable coins, and alts, we saw clear product-market fit for the NFT industry.
yNFT makes it easy to deposit all of your NFT assets, their related utility tokens, supported stable coins, etc., to earn yields through unique strategies that are designed to maximize the yield of the deposited asset and minimize risk.
To be clear, a non-fungible token (NFT) is a type of cryptographic token that represents a unique asset. NFTs are tokenized versions of digital or real-world assets. They function as verifiable proofs of authenticity and ownership within a blockchain network. NFTs are not interchangeable with each other and introduce scarcity to the digital world.
Inspiration from Yearn Finance

What is the purpose of yNFT?

Like what YFI did for the DeFi industry, yNFT aims to be a building block in the rapidly growing NFT industry. Many proven DeFi concepts will fast move over to the NFT industry.
For example, have a look at this beautiful staking model built for the F1 Delta Time game by Animoca Brands. Some of these NFT holders are missing out on the massive gains that DeFi users are capturing every single day.
Not officially audited or anything by F1.
An NFT whale who deposits an Apex car into the yNFT Protocol could potentially earn 40% of the pool rewards. A previous staking period of 2 weeks had a pool reward of 10,000,000 REVV. 40% * 10M (REVV) * $0.06 (REVV price) = $240,000.
Now imagine if a user deposited all their NFT assets in the yNFT Protocol. The protocol would actively seek and maximize yields for all of their NFT assets.
Maximizing the earning potential of your NFT assets isn't easy. That's why we're building yNFT.

What is the yNFT Token?

The yNFT protocol will consist of a suite of several platforms for users to safely manage their NFT assets with maximized yields.
Products may include:
  • Dashboard: Quick glance at how your portfolio is growing while invested in yNFT protocol products.
  • Vaults: Unique strategies that are designed to maximize the yield of the deposited asset and minimize risk.
  • Earn: Earn performs profit switching for lending providers, moving your assets between NFT lending protocols autonomously.
  • Stable Coin: Non volatile currency for purchasing NFT assets both in-game and across different ecosystems.
  • Lending: Lending/borrowing of NFT assets with stable coins and ethereum.
  • Cover: Coverage on all assets deposited into yNFT Protocol.
  • Stats: Quick glance at how your vaults are performing.
Each of these systems have control mechanisms, configurable fees, maintenance controls, and rules that can be modified. We do not believe these should be managed by us. These should be managed by the NFT community.
yNFT is a governance token to further solidify our efforts to give up this control. We are also lazy and don’t want to it.
Thus, we have released yNFT, a completely valueless token. We re-iterate, it has 0 financial value. There is no pre-mine, there is no private sale, there is no presale, there is no public sale. This is not something you can buy.
Earning yNFT is simple. We just need your promise to provide liquidity to one of the platforms above. Obviously, this promise will be on-chain. The Stable Coin platform will be the first to launch with an algorithmic stable coin for NFTs called NFT Cash.
Once you have yNFT in your wallet, you can stake the tokens in the distribution contracts (we will provide an interface for this), and you will earn a (governance controlled) amount per day in NFT Cash and also compound your yNFT.
Otherwise, standard voting rules apply, minimum quorum required (>33%) to propose a change, usual veto rights (>25%), and usual agreement thresholds (>50%) required to pass a vote and update a change. All these are configurable, governance can feel free to change as required.
So if you are an LP to one of the systems (or all of the systems above), the control is in your hands. Good luck.
And just because we feel we didn’t stress it enough, 0 value. Don’t buy it. Earn it.

What are the key differences between YFI and yNFT?

PARAMETER
YFI
yNFT
Assets Supported
ETH, wBTC, stables, and other DeFi tokens
Any NFT assets, their related utility tokens, and supported stable coins
Governance Vote
Yes, whales easily control the vote
Yes, strictly belongs to the NFT community. More decentralized.
Vaults
Yes, maximize yield on DeFi assets
Yes, maximizing yield on NFT assets
Lending
Yes, through Cream.finance
Yes, but there is no existing protocol for this currently. If nobody else builds it, we will need to jumpstart a team to do this.
Coverage
Yes, through Cover Protocol
Yes, but there is no existing protocol for this currently. If nobody else builds it, we will need to jumpstart a team to do this.
Code Base
New and Audited
We will fork only where it makes the most sense to ensure it's a building block for the NFT industry. Otherwise, it will be new and audited.

What does yNFT bring to the table?

The key innovation brought by yNFT is bringing to the NFT industry what YFI brought to DeFi. Top gaming and NFT projects like The Sandbox, Axie Infinity, Revv by F1 Delta time, Gamee, Decentraland, etc., will encourage mass adoption of crypto with their innovative use cases of blockchain. yNFT will further usher int he onboarding of retail to the NFT industry with its best-in-class management of NFTs as an asset class.
Problem:
The NFT asset class is new and it is taking off just like DeFi. Digital goods have the potential to become easily tradable crypto assets. Digital goods are the product of commercial economies: non-fungible items that represent ownership of both digital and physical assets, such as digital art, in-game assets and sneakers. Crypto market participants in decentralized networks have thus far hyper-focused on the fungible exchange of cryptocurrencies and crypto-securities. These assets, generally described as “fungible tokens”, usually represent an electronic stock or currency. As the “non-fungible token” asset class becomes more prevalent, infrastructure is needed to enable their efficient pricing and exchange, as a means to onboard and facilitate transactions for a wide range of digital and physical goods.
Solution:
yNFT makes it easy to deposit all of your NFT assets, their related utility tokens, supported stable coins, etc., to earn yields through unique strategies that are designed to maximize the yield of the deposited asset and minimize risk.

How do you buy yNFT and what is an on-chain promise?

Just kidding, you can't just buy yNFT! You need to actively participate and contribute to the growth of the NFT industry. Show off your favorite NFTs to us!
Merriam the NFT Queen showing off her new set of wheels and new set of Cyberpunk clothes.
yNFT is a governance token to manage the control mechanisms, configurable fees, maintenance controls, and rules that can be modified in the yNFT Protocol. These should be managed by the NFT community.
Thus, we have released yNFT, a completely valueless token. We re-iterate, it has 0 financial value. There is no pre-mine, there is no private sale, there is no presale, there is no public sale. This is not something you can buy.
Earning yNFT is simple. We just need your promise to provide liquidity to one of the platforms in the yNFT protocol ecosystem when they launch. The promise will be on-chain and the distribution of tokens earned will be done through the distribution contract.

On-Chain Promise (Earning yNFT)

An on-chain promise is a way for the NFT community to show their commitment in bringing the yNFT Protocol and its suite of platforms to life.
This on-chain promise is made by depositing ETH into the distribution contract as homage to the organization that created the ever-so important ERC-721 standard for Non Fungible Tokens. After the deposit period is over, you can claim your valueless yNFT tokens. These yNFT tokens represent your promise to provide liquidity to one of the platforms in the yNFT protocol ecosystem.
Like YFI, this marks a shift in how protocols can incentivize adoption. It has been argued that YFI's launch was the "most fair launch since Bitcoin," as anyone could participate in the generation of the coin while paying the same price. However, this gave an unfair advantage to whales already had millions of dollars worth of assets that YFI supported. The same holds true for two other supposedly "fair launches" ran by Uniswap and 1Inch Exchange. The more you used UNI & 1INCH, the large your transaction volumes were, and the larger your airdrop was. The rich became richer.
At yNFT, users will need to participate in the yNFT protocol and everyone has a fair chance through the on-chain promise. This mechanism allows a community to rapidly build around the project, as every user has the same ability to influence yNFT through the governance token.
yNFT On-Chain Promise Distribution Contract has been deployed at: https://etherscan.io/address/0x666b045dc0af66b36152959869e2c5b99e8139d9
Minimum On-Chain Promise
0.1 ETH
Distribution Amount
1 ETH : 10,000 yNFT
1 yNFT : 0.0001 ETH
Total yNFT Supply
10,000,000 yNFT
On-Chain Promise Hardcap
500 ETH
Total yNFT Supply Allocated to On-Chain Promise Contributors
5,000,000 yNFT (50% of total supply)

Complete your on-chain promise and deposit ETH to receive yNFT here: https://etherscan.io/address/0x666b045dc0af66b36152959869e2c5b99e8139d9

What do you get for making an on-chain promise and hold the yNFT token?

The most lucrative benefit of making an on-chain promise is holding the yNFT token.
yNFT is crucial to the yNFT Protocol in that it will generate deposits and attention and the token also has another purpose: to decentralize development and control of the protocol amongst users.
The first utility of yNFT will be the single asset farming mechanism allowed for any user. Whether they have $100 or $1,000,000, single asset farming with yNFT allows anyone to earn a stable coin and compound more yNFT. All without having to have $1M worth of USDT to start off.

How can I participate in single asset farming with yNFT?

The Stable Coin platform will be the first of the yNFT protocol to launch with an algorithmic stable coin for NFTs called NFT Cash.
Once you have yNFT in your wallet, you can stake the tokens in the distribution contracts (we will provide an interface for this), and you will earn a (governance controlled) amount per day in NFT Cash and also compound your yNFT.
Last modified 1yr ago
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Outline
What is yNFT?
What is the purpose of yNFT?
What is the yNFT Token?
What are the key differences between YFI and yNFT?
What does yNFT bring to the table?
How do you buy yNFT and what is an on-chain promise?
What do you get for making an on-chain promise and hold the yNFT token?
How can I participate in single asset farming with yNFT?