An Innovative Approach

Revolutionizing Algorithmic Tokens: A Sustainable Approach

The Yield Strategy protocol is a highly optimized and innovative approach to seigniorage, born from the firsthand experience of our team during the 2020–2022 DeFi boom. Leveraging our deep understanding of seigniorage mechanisms, we have designed what we believe to be the ideal balance between high-yield farming and long-term sustainability—a model we aim to set as the benchmark for future DeFi seigniorage protocols.

For the first time in history, an algorithmic coin without a collateralized backing has the potential to end emissions above peg, a breakthrough in sustainable DeFi.

Ending Infinite Minting: A Finite, Sustainable Supply Model

By enforcing a 30-day emissions window, the protocol introduces a defined end to the typically infinite minting associated with algorithmic peg tokens. We've meticulously calculated the emission curve, supply trajectory, and potential sell pressure to forecast total supply at completion. This allows us to align emissions with target APRs and generated revenue—ensuring inflation is kept in check.

This finite supply model prevents the protocol from collapsing under the weight of endless inflation, as seen with past algorithmic coins. Once emissions end, the next steps will be determined through shareholder governance, with possible paths including redemptions, a follow-up genesis, or a V2 protocol.

How It Works:

Over the 30-day emissions period, the protocol maintains a consistent 2%–3% daily APR, aiming to self-sustain inflation by generating enough revenue to buy back emissions in the event the peg slips.

A combination of mechanisms—Fixed Supply Curve, Peg Stability Module, OTC Desk, and integrations with external protocols—work together to generate yield, enabling the system to support its own inflation.

Thanks to the structured supply curve, we can accurately project the final market cap, maximum sell pressure, and overall token dynamics, ensuring that our innovations create a strong and growing backing that surpasses sell-side forces.

The Perfect Balance: Yield vs. Inflation

• Higher yield = More volatility While appealing, elevated APRs often lead to instability and increased risk of peg depegging.

• Lower yield = More stability Sustainable APRs reduce risk but may offer diminished returns, making it harder to attract yield farmers.

Our solution: Dynamic APRs. These allow for real-time adjustments to the minting power of both the peg token and $SHARE, enabling the protocol to deliver the benefits of both high and stable yields while minimizing downsides.

Our Goal: Ending Emissions Above Peg

We are committed to completing the emissions cycle above peg, and we’re confident in achieving this through our carefully structured mechanisms that balance yield, sustainability, and price integrity.

This is not just another algorithmic token experiment—it is a calculated, next-gen approach to building a sustainable DeFi ecosystem.

OTC Desk

The OTC Desk is our unique solution to enhance peg stability, protocol revenue, and treasury backing.

As detailed in the OTC Desk documentation, users can purchase discounted $SHARE tokens (10–20% below market price) directly from the treasury using $wBERA and $HONEY—hence the name "Over-the-Counter Desk."

• Limited quantities of $SHARE will be available at any given time.

• Purchased $SHARE tokens are linearly vested over 3 days.

• Buyers may use their vested $SHARE however they choose: to create LP in the Bank, stake in the Vault, or execute arbitrage strategies.

The collected $wBERA and $HONEY will be used to:

• Strengthen protocol-owned liquidity

• Enhance peg redeemability

• Support marketing and partnership efforts

Peg Stability Module

The Peg Stability Module (PSM) acts as a dual-purpose tool for peg defense and revenue generation, inspired by Snake Finance’s farm fee mechanism.

In Yield Strategy’s Bank, users are rewarded with $SHARE options for providing essential liquidity for native tokens. These $SHARE rewards can be claimed in full by paying a small fee—10–20% of the pending reward’s value in $BERA.

This model:

• Grants users full $SHARE rewards

• Simultaneously boosts the treasury’s blue-chip backing

• Enhances peg stability

• Keeps the printer running and Bank APRs high

Because emissions in the Bank are short-term, the reward option fee is negligible for farmers but offers long-term benefits for peg defense—making it a net positive for all participants.