Transition to Binance Smart Chain & Yield Bank’s Liquid Level Calculations

iYield

Just now·3 min read

The iYield Team is excited to announce to you the transition of the project to Binance Smart Chain (BSC) 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!

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.

Yield Bank’s platform and all of its smart contracts and functionalities will be switched over to 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.

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.