Yield Farming Index Protocol is a decentralized crypto hedge fund with the intent to generate robust returns through the application of trading strategies and risk management techniques.^[1]

Overview

The Yield Farming Index Protocol, initiated by crypto Twitter yield farmer @delucinator and manager @BetsyKetz, develops single-stake vaults for the $YFX token. These vaults are designed to efficiently direct a portion of the protocol's revenue to stakers. With a conservative estimated 40% APR, YFX secured $2 million through a presale, engaging in private sales, and launching on GMD Protocol's launchpad.

The protocol actively deploys funds across various yield farming applications, intending to enhance the relative fund value and fortify the token's overall worth. YFX is accessible on multiple platforms, including Mantle, Avalanche, and Arbitrum.^{[1][2][3][4][5]}

Revenue Models

Primary Model

The core revenue model of the Yield Farming Index Protocol is designed with specific objectives in mind. The protocol aims to generate revenue primarily through yield farming, utilizing its treasury to provide liquidity to a diverse range of DeFi protocols. This strategy seeks to achieve a predictable 2.0–2.5% monthly return on the value of the underlying treasury, establishing a stable income stream.

Additionally, the protocol allocates a portion of its generated income as incentives, intended to encourage the development of Solidity forks. By offering competitive annual percentage rates (APRs) to liquidity providers dealing with tokens exhibiting appreciating values, the protocol aspires to stimulate trading activity and volume.

This incentive structure is designed to attract user participation, fostering liquidity provision and, consequently, enhancing the overall usage and revenue of the platform.^[6]

Secondary Model

The Yield Farming Index Protocol integrates a secondary revenue model focused on growth equity investments within the crypto space.

YFX traders aim to identify and present potential growth opportunities to the community for collective decision-making. If the community approves an investment proposal, the protocol seeks to invest to realize returns on these investments as an additional source of revenue.

This model is designed to utilize the collective insight of the community in exploring and potentially benefiting from promising opportunities in the ever-evolving crypto landscape.^[6]

Yield Farming Index Token ($YFX)

The YFX token is designed to facilitate participation in single-stake vaults of the $YFX token, intending to streamline a portion of the protocol's revenue towards stakers. The determination of the total market cap of YFX is linked to the dollar amount raised during the presale, establishing a fixed total supply. For example, if $1,000,000 is raised, the YFX total supply will be set at 1,000,000, gradually decreasing over time.^[7][8][9]