For those of you who missed today’s AMA, here’s a summary of the questions that were covered, along with some other key points that we did not manage to have time for during the session.
A lot of people have been asking this — what is Yesports, it feels like it’s come out of nowhere?
- Last year, Yieldly announced that we received a grant from Polygon Studios to build out the Yesports vision and product. We understand that that exposure may not have reached the Yieldly community as best it could. We will mark this down as a learning experience — and continue to grow and evolve our communications going forward.
- To set the scene, our esports partners, with whom we are collaborating with successfully (such as the co-launch we did with them and Zipmex which resulted in remarkable trading volume on exchanges and growth in our token holder numbers by the thousands) love what our DeFi product is doing and we will continue to leverage their user bases to deliver our DeFi product.
- Another thing our partners want to do is to take their users into Web3 and give them a product to compete with the likes of what is happening in Solana (where FTX has sponsored a team for $200m). They viewed NFTs as a tool by which they can engage their fans and bring them on a journey, and they wanted our help in executing this vision.
- We began to scope out what this would look like for a DeFi company on Algorand to build an NFT marketplace for esport users and fans. There are, however, gaps between the technical capabilities of an NFT built on Algorand versus one built on the EVM, for example. There were key requirements our partners needed (such as wallet connections to OpenSea, etc). Esports teams were very reluctant or downright adamant that they could not bring their users on the NFT journey via an ecosystem that was still evolving. They wanted a product tapped into the biggest NFT ecosystems and user bases in the world so it makes the pathway to entry for their fans easy. That being said, we are still convinced a cross-chain NFT marketplace makes sense. So it was at this point in Q3 2021 that we engaged a new developer team lead by Jackson Delahunt to build out both a NFT Marketplace on Polygon and NFT marketplace on Algorand with a clear remit to make sure there is scope for interoperability as tech develops.
- What remains unchanged is the esports teams’ interest in showcasing and building pathways for DeFi use cases via Yieldly’s core suite of products. As this user adoption increases, it further supports our view that there will be clear interoperability.
- The key takeaway here is that we have built bridges as one of our first products for a reason, and we continue to want to bring ecosystems together. Our home is Algorand, and as Algorand’s technology develops with our support and continued dedication, we will happily bring these two worlds together.
Why is Yieldly releasing Yesports on Polygon first and not Algorand? Does this move mean you are leaving Algorand?
- We have complete faith in Algorand as it offers fantastic technical opportunities — this is why we are building so many worlds’ firsts with the technology. However, the technical reality of Algorand infrastructure-wise is that it cannot, as yet, fulfil the specifications of our Yesports partners. These limitations include the absence of NFT standards, lack of interoperability with EVM-compatible chains and their key NFT ecosystems, lack of integrations with Metamask etc.
- Nevertheless, we have exciting plans for overlap between Yieldly and Yesports, namely: stake YLDY for YESP rewards; NFT prize games; Polygon <> Algorand Bridge.
- Once we have a foot in the door, and Algorand catches up, we are in the prime position to marry the two. Yieldly has always been for and about the multi-chain world. That’s the dream.
Why create the new YESP token for Yesports when Yieldly has YLDY ERC20?
YESP from YLDY are two separate tokens for two core reasons:
- YESP from YLDY are two separate tokens for two core reasons:
- Firstly, tokens need to be shaped around their specific utility and foundation. The YLDY token is at its core anchored to Yieldly’s DeFi tech on Algorand. It allows you to stake, swap, bridge and transact in a gamified way. The YESP token is specially designed for web3 on EVM-compatible chains to help govern and make specific decisions about a world dedicated to esports teams and fans.
- Secondly, it’s a matter dictated by Yesports partners and backers. The commerciality of using the same token for two separate businesses does not stack up. There’s no way Yesports could sustainably sponsor the top esports teams and partner with the top VCs with the YLDY token.
Are there any conflicts of interest between this round of funding with Polygon Studios and Asia Accelerator?
- No conflicts. Like many in this space, we are building technology and have more than one project or utility token. In fact, many of the VC partners who backed us last year, are the same ones backing Yesports.
What’s the thought process behind the proposed iYLDY governance token and why a new token?
Our thought process for iYLDY was as follows:
- Throughout last year, we listened to the community’s concern that ‘whales’ were frequently winning the prize games. However, as we’ve said in the past, we cannot fundamentally alter the mechanics of our smart contracts so that smaller YLDY holders have a better chance of taking home the jackpots — that’s a technical issue that would jeopardize the ability to stake and generate rewards for all. So we started thinking about other ways we could level the playing field…
- We also shared the community’s desire for governance. Separating governance (iYLDY) and utility token (YLDY) made a lot of sense in crypto. It separates the punters from the actual die-hard supporters of the platform who want to have a say in the direction in which it grows. Furthermore, iYLDY was never proposed to be a token that you can trade in the same way as YLDY.
- We wanted a governance token to be weighted against the historical use of Yieldly. The beautiful thing about blockchain is that it provides transparent, immutable records. We know, inter alia, how much YLDY our users have historically held, as well as how often they have used or interacted with our platform.
So, that’s the thinking behind it. However, we hear the community’s concerns regarding iYLDY and will let you decide on whether it takes place or not. We will release more information on the proposed iYLDY, let you digest and debate on that information, and vote informed via our socials. Ultimately, if the community doesn’t want it, it won’t happen!So, that’s the thinking behind it. However, we hear the community’s concerns re iYLDY and will let you decide on whether it takes place or not. We will release more information on the proposed iYLDY, let you digest and debate on that information, and vote informed via our socials. Ultimately, if the community doesn’t want it, it won’t happen!
Last year Yieldly announced NFT partnerships with esports teams Fact Revolution and Boom Esports — have those partnerships moved to Polygon?
- Fact Revolution and Boom esports partnerships will eventually intersect both Algorand and Polygon — they are not leaving Yieldly. Those early partnerships are testament to our long-standing appreciation of the latent relationship/demographic crossover between gamers and crypto. If we can funnel non-crypto native esports fans to Yieldly DeFi and Yesports Web3, then that is a major win for all of us.
How is the team resourcing and building Yesports, and how does that impact Yieldly’s roadmap and plans?
- There is a very clear delineation between resources for Yieldly and funds raised for Yesports. Accordingly, Yesports does not impact or take away from Yieldly’s focus or roadmap. While we are behind on some current Yieldly roadmap items (e.g. NFT Marketplace) — that is the result of how aggressive we are with product launch timelines, how strongly we feel about the integrity of our platform, and of course our unique user experiences.
- We have used resourcing for Yieldly to grow out the developer team and leadership level (COO, marketing, comms etc.).
- Yesports has been the fortunate recipient of Polygon Studio’s builders grant. It is worth mentioning we did present Yesports to key VCs within the Algorand ecosystem but only Polygon saw the value in Yesports.
- 18+ are now working on just Yesports — and we are in the process of ensuring that this is reflected across the different web entities.
- There is some natural advisory overlap at the moment — the goal is to have teams focused and building without distractions.
Did the team consider taking 6 months to fund to build out the utility for YLDY to raise the token price so that you can fund the Yesports venture? That way you do not have to sell as many tokens to raise the same amount.
We are always working hard to improve YLDY’s token utility — that goes without saying.
However, the strategy posed by your question wouldn’t be feasible for two reasons:
- Firstly, using Yieldly to fund Yesports would involve a long-term bet and downward pressure on YLDY that could materially and adversely impact Yieldly ecosystem, for all involved. We’re not willing to take that risk.
- Secondly, if we were to wait another 6 months before raising for Yesports, we would ‘miss the boat’. Crypto is a fast-moving space, and the velocity of the gaming space is particularly rapid. We’ve always been first movers and there’s a clear commercial competitive time component that we cannot overlook with Yesports.
What can we expect in the Yieldly roadmap in the months to come? Specifically in regard to a Yieldly AMM/DEX, and how the YLDY token will be integrated with said AMM?
- We parked the AMM from our previous roadmap because Tinyman came out and added the missing piece to the puzzle. Even now, we are seeing variations of AMMs to be launched on Algorand. When we look across the market and at where we can value-add the most for AMM products, it is in TEAL 5 staking pools which go hand-in-hand with AMMs. We’ve always looked to complement others and grow the ecosystem where we can, to collaborate not compete. If entrepreneurs out there are already filling the gap (Tinyman and more coming), we will readily divert our talent and resources to other challenges across the ecosystem.
- Our focus is on delivering DeFi primitives that are missing from the Algorand ecosystem for our users — which is why we aggressively built out the liquidity mining product for a start, which goes hand in hand with Tinyman’s DEX.
When asked about the plan to do swaps/dex , you mentioned fiat onramps via Moonpay. I’ve heard mixed reporting but, does Moonpay work of US residents? If not, are there further solutions being explored?
- In terms of bringing new users on and having a fiat onramp, the evolving regulatory climate around the world makes sure that there is no easy answer for this. We are in communications with Moonpay, scoping out integration and doing everything possible on our side to bring it to life. Moonpay is available to US citizens in certain states, and at different levels of access for different states. We are constantly on the lookout for something that will drive value for our users and the product so we have to find that sweet spot between delivering a DeFi experience that users love and toeing the line with regulators as well.
In the roadmap, there is mention about a launchpad. Some ASA projects like Algomint have put off launch plans to wait for Algorand native launchpad — are there any updates on this product?
- Our launchpad, which is Algorand’s first native one, is on track for launch this quarter, as promised. We are currently working on the regulatory, legal infrastructure and KYC elements, as well as finalising the product. This will have a material impact on how we communicate that product to ASA projects keen on using our launchpad. Using Cosmic Champs as an example, we will start to see that coming to life really soon.
- More importantly, we are committed to building something that can withstand the test of time, especially in an ecosystem this young. There may be slight delays at times in terms of product launches and this is largely due to a process that we have to minimise the risk for our users.
- We will continue to do our level best to deliver great products for the ecosystem, and we are excited to see more projects enter the space — more the better.
Given that the Humble DEX, ALGOFI, and surely others will/are also offering LP staking pools, do you think this is a strong enough additional use case for Yieldly?
Yes, our multi-audited next generation LP staking pools have a very strong use case for Yieldly. Our pools are what make Yieldly home to the highest DeFi rewards on Algorand. The numbers speak for themselves.
To date, Yieldly has rewarded our beloved users with:
- USD$13,010,911 across Yieldly pools
- 774,134 ALGO in weekly winnings for No-Loss Prize Games
- 190+ NFTs given out via 75 NFT draws ($7M average staked per draw) — building up massive exposure for nft community
- ~16M per week at the current point in YLDY pool curve
On top of those rewards, we have also proven our value to other ASA partner pools. For example:
- AKITA LP pool on Yieldly led to 16X & 4th largest Algorand pool ~24 hrs, and grew to be the 2nd highest non-stable coin pair in a couple of days.
- Choice Coin staking pool led to 45X increase.
- Smile Coin staking pool led to 2X in 2 hrs and 8M vol. in 4 hrs
Yieldly existed for 5 months without any peers around us — we truly were the first in creating value. And we continue to prove our value to the ecosystem time and time again.
What should we expect in the months to come re the Yieldly roadmap?
We have a really exciting roadmap planned that going take Yieldly to the next level:
- Teal 5 LP pools coming in hot within the next weeks (AKITA re-launches once Tinyman is up, Xfinite shortly after, and more partners to come!)
- Launchpad with some of the best up and coming ASA projects including Cosmic Champs
- TEAL 5 migration (blog coming this week explaining the process)
- Auto Compounding as standard on all new same token pools
- Marketplace on the brink of launch
- VIP NFT Prize Games
- Artists Hall of Fame
- Liquidity Locking
- NFT Staking (EVM chain)
- Algo purchase on App
Moving forward, are there plans in place to communicate and engage the community more on big updates, changes of plans, delays in roadmaps, etc?
Yes, we will endeavor to be better with our communications. We thank you for your patience to date and we want to reaffirm our commitment as a team to shipping products that our users love. A lot of blood, sweat and tears have gone into making Yieldly. We may trip up every once and again and are ready to admit that, but no one’s perfect, though we try our best all the time!