[S10] - YielDex 🏅

Lightpaper: YielDex

Plan : 

1. 1. - Executive Summary 

   2. - The problem

2. - The solution

3. - How it works

4. - Use Cases

5. - Market Analysis

6. - Marketing strategy

7. - Product development 

8. - Sales Strategies

9. - Team

10. - Technical roadmap

11. - Executive summary

YielDex is a DeFi protocol that aims to provide users with the ability to place limit orders on DEX and Aggregators while still earning yields on their deposits. The project's main purpose is to provide users with a more convenient way to manage their assets by allowing them to place orders and work on the underlying asset's liquidity simultaneously. YielDex provides several features to enable users to place limit orders in a more flexible manner. For instance, users can place several orders with the same liquidity, and the first order that meets the buy conditions is executed.

2. The Problem

Inconvenience of managing assets: Currently, DeFi users have to choose between placing limit orders on DEX or Aggregators and putting their assets on yield strategies. YielDex solves this problem by allowing users to place limit orders while continuing to earn yields on their deposits.

Limited flexibility in placing limit orders: The current options for placing limit orders on DEX and Aggregators have limited flexibility. YielDex addresses this by providing users with the ability to place several orders with the same liquidity, and the first order that meets the buy conditions is executed. Users can also place limit orders with added confirmations, enabling them to buy or sell at specific price points.

MEV attacks: MEV attacks can occur when the price of an asset changes between the time a transaction is initiated and when it is executed, resulting in potential losses for users. YielDex uses Chainlink as a second price provider in its swaps to reduce the possibility of MEV attacks, thereby enhancing the platform's security and reducing risks for users.

Lack of on-chain trading strategies: YielDex provides users with the ability to integrate on-chain trading strategies, such as moving averages via Chainlink. This feature allows users to execute trades based on predefined strategies, which can help improve their overall trading performance.

3. The solution

YielDex solves several problems in the DeFi space by offering a solution that enables users to place limit orders on DEX and Aggregators while still earning yields on their deposits. Here are some of the problems that YielDex addresses:

Combines limit orders with yield strategies: YielDex enables users to place limit orders on DEX and Aggregators while still earning yields on their deposits. This allows users to manage their assets more efficiently and avoid the need to choose between placing limit orders and earning yields.

Flexible limit order placement: YielDex offers users more flexibility in placing limit orders. Users can place several orders with the same liquidity, and the first order that meets the buy conditions is executed. Users can also place limit orders with added confirmations, enabling them to buy or sell at specific price points.

Protection against MEV attacks: YielDex uses Chainlink as a second price provider in its swaps to reduce the possibility of MEV attacks, which can result in potential losses for users. This enhances the platform's security and reduces risks for users.

On-chain trading strategies: YielDex provides users with the ability to integrate on-chain trading strategies via Chainlink. This enables users to execute trades based on predefined strategies, such as moving averages, which can help improve their overall trading performance.

DCA Superfluid orders: YielDex also offers users the ability to place DCA Superfluid orders. This means that users can automatically buy or sell assets when the price reaches a plateau, reducing the need for manual intervention.

In summary, YielDex provides a comprehensive solution that combines limit orders with yield strategies, offers flexible limit order placement, provides protection against MEV attacks, enables on-chain trading strategies, and offers DCA Superfluid orders.

4. How it works

5. Use cases

Place a limit order and to work the underlying asset (its liquidity) while waiting for the order to be executed:

Alice wants to buy 1 ETH when its price reaches $1500, but she also wants to continue earning yields on her USDC in the meantime. She can use YielDex to place a limit order for 1 ETH at $1500 on UniSwap while continuing to earn Aave yields on her USDC deposit.

Bob wants to sell 1000 USDT when the price of DAI reaches 1.01 USDT. He can place a limit order on QuickSwap for DAI/USDT and still earn yields on his USDT deposit through Aave.

Place several orders with the same liquidity. The first order that meets the buy conditions is executed:

Carol wants to buy 1 ETH at either $1400 or $1350, whichever comes first. She can place two limit orders on YielDex for 1 ETH at $1400 and $1350, respectively, and the first order that meets the buy conditions will be executed.

Dave wants to sell 1000 USDT at either 0.99 or 0.98 DAI, whichever comes first. He can place two limit orders on YielDex for DAI/USDT at 0.99 and 0.98, respectively, and the first order that meets the sell conditions will be executed.*

Place a limit order by adding confirmations:

Eve wants to buy 2k ETH if ETH is under $1500 and BTC is under $20,000. She can place a limit order on YielDex with two confirmations: one for the ETH price and one for the BTC price. The order will only execute if both confirmations are met.

Frank wants to buy altcoins based on the price of BTC. He can place several limit orders on YielDex for different altcoins (e.g., LINK, AAVE, BAT etc.) with a confirmation for the BTC price. The orders will only execute if the BTC price meets the confirmation.

Place a DCA Superfluid order if the price reaches a plateau:

Grace wants to buy 1 ETH every month as long as its price stays between $1300 and $1400. She can use YielDex to place a DCA Superfluid order that will automatically buy 1 ETH per month as long as the price stays within the specified range.

Harry wants to sell 500 USDT every week as long as the price of DAI stays above 0.95 USDT. He can use YielDex to place a DCA Superfluid order that will automatically sell 500 USDT per week as long as the price of DAI stays above the specified threshold.

Integrate on-chain trading strategies (for example, moving average on-chain via Chainlink):

Isabel wants to buy ETH when its 50-day moving average crosses above its 200-day moving average. She can use YielDex to place a limit order that will automatically execute when the condition is met.

Jack wants to sell his LINK when its 20-day moving average crosses below its 50-day moving average. He can use YielDex to place a limit order that will automatically execute when the condition is met.

YielDex Also allows users to import their own ERC4626-compliant strategies by following a few steps:

• Create a new strategy: The user creates a new strategy using the ERC4626 standard that defines the rules and conditions for the strategy.

• Deploy the strategy: The user deploys the strategy on the Ethereum network using a smart contract. The smart contract code contains the logic of the strategy and is stored on the blockchain.

• Register the strategy: Once the smart contract is deployed, the user registers the strategy on YielDex by providing the necessary information such as the contract address, the name of the strategy, and the author's name.

• Configure the strategy: The user configures the strategy by setting the parameters such as the minimum and maximum order sizes, the maximum slippage, the target asset, and the liquidity source.

• Start the strategy: Once the strategy is registered and configured, the user can start the strategy by depositing the required assets into the liquidity pool. The strategy will automatically start executing orders based on the predefined conditions.

• Monitor the strategy: The user can monitor the performance of the strategy using YielDex's dashboard, which displays real-time data such as the strategy's net asset value, the executed orders, and the current positions.

By allowing users to import their own ERC4626-compliant strategies, YielDex provides a flexible and customizable solution for trading on decentralized exchanges while continuing to earn yield on deposited assets.

These are just a few examples of how YielDex can be used to execute various DeFi trading strategies. The platform's flexibility and features allow users to customize their trading strategies according to their needs and preferences.

6. Market analysis

Yieldex operates in the decentralized finance (DeFi) market, which is a fast-growing and highly competitive space. Here is a market analysis of Yieldex competitors, including Mangrove:

Uniswap: Uniswap is a decentralized exchange (DEX) that allows users to trade tokens on the Ethereum blockchain without intermediaries. It has a user-friendly interface and a large selection of tokens. However, Uniswap does not offer limit orders or yield farming.

SushiSwap: SushiSwap is a DEX that offers similar features to Uniswap, including yield farming and liquidity provision. However, SushiSwap has faced controversy in the past, and its code has been audited less than Uniswap.

1inch: 1inch is an aggregator that sources liquidity from multiple DEXs and allows users to get the best price for their trades. It also offers limit orders and liquidity provision. However, 1inch does not offer yield farming.

Curve Finance: Curve Finance is a DEX that specializes in stablecoin trading. It offers low fees and high liquidity for stablecoin pairs. However, Curve does not offer limit orders or yield farming.

Mangrove: Mangrove is a DeFi lending and borrowing platform that also offers yield farming opportunities. It allows users to earn yield on their deposited assets and provides a range of tokens for trading. However, Mangrove does not offer limit orders.

Compared to its competitors, Yieldex offers a unique solution that allows users to place limit orders while continuing to earn yield on their deposited assets. It also allows users to import their own ERC4626-compliant trading strategies, which provides a high degree of customization and flexibility. While Mangrove offers similar yield farming opportunities, Yieldex has a different focus on trading and liquidity provision. Overall, Yieldex competes with other DEXs and yield farming platforms but offers a unique value proposition in the market.

7. Marketing strategy

Defining the target audience: Yieldex's target audience could include cryptocurrency traders, yield farmers, and DeFi enthusiasts who are interested in placing limit orders while continuing to earn yield on their deposited assets.

Brand identity: Yieldex should develop a strong brand identity that communicates its unique value proposition. This could include a website with a clean and intuitive interface, a distinctive logo, and engaging social media content.

Building community: Yieldex should engage with its target audience and build a community around its brand. This could include hosting webinars, AMAs, or other events that educate users about the benefits of placing limit orders while continuing to earn yield. Yieldex could also incentivize users to participate in liquidity provision or other activities that support the platform.

Provide exceptional customer service: We want to prioritize customer service and provide timely and helpful responses to user inquiries or issues. This could include offering support, easy-to-understand documentation, and transparent communication about platform updates or issues.

Leverage paid advertising: Yieldex could leverage paid advertising channels, such as Google Ads or social media ads, to reach its target audience. This could include targeting users based on their interests in cryptocurrency or DeFi, as well as targeting specific geographic regions or demographics.

Offer incentives: Yieldex could incentivize users to try out the platform by offering promotions, such as lower fees or increased yield for a limited time. This could help attract new users and encourage existing users to continue using the platform.

Overall, Yieldex's marketing strategy should focus on communicating its unique value proposition, building a strong brand identity, and engaging with its target audience in meaningful ways. By prioritizing customer service and providing incentives for users to participate in liquidity provision or other activities that support the platform, Yieldex can differentiate itself from its competitors and attract a loyal user base.

8. Product Development

Here are the different protocols we use for our solution : 

The Graph: Yieldex can use The Graph to retrieve yield strategies from DeFi protocols like Yearn, Beefy, or Aave. This will allow users to easily choose the best yield strategies for their assets, and Yieldex can also potentially offer its own yield strategies in the future.

WalletConnect: Yieldex can integrate with WalletConnect to enable institutional users to connect their multisig wallets to the platform. This will allow institutional users to see all their positions on Yieldex without having to manually connect to each wallet individually.

Polygon: Yieldex can use Polygon as the primary EVM chain for the platform. This will allow users to easily deposit and withdraw assets from the platform with low fees and fast transaction times.

Web3Modal: Yieldex can use Web3Modal to provide a seamless user experience for connecting wallets to the platform. This will allow users to easily connect their wallets and start using the platform without having to go through a complicated onboarding process.

Chainlink: Yieldex can use Chainlink to retrieve the price of assets and implement additional anti-MEV security. This will help ensure that the prices used in limit orders are accurate and prevent any potential front-running or other attacks on the platform.

OpenZeppelin: Yieldex can use OpenZeppelin to ensure the security and reliability of its smart contracts. This will help prevent any potential hacks or vulnerabilities in the platform's code.

Secondary EVM chains: Yieldex can potentially expand to other EVM chains, such as Auro, Base, or Neon, to provide users with more options for trading and depositing assets. This will allow users to access a wider range of DeFi protocols and strategies, and potentially provide additional revenue streams for the platform.

9. Sales Strategy

Here are some potential sales strategies that can be built around the note on strategies boosted by a gain in governance tokens:

Incentivize users to trade on Yieldex by offering them a percentage of the governance tokens earned by the protocol. This will encourage more people to use the platform, leading to higher trading volumes and more fees collected by the protocol.

Launch a new token called ByPack that can be earned by trading on Yieldex. ByPack can then be swapped for governance tokens, giving users a direct stake in the success of the protocol.

Implement a delay in the issuance of governance tokens earned through trading on Yieldex. By smoothing out the issuance of tokens, users will be less likely to dump them on the market, which can cause a price drop. Instead, they will be incentivized to hold onto their tokens and continue trading on Yieldex.

Let users vote on which pools should be boosted by governance tokens. This will increase engagement and participation among users, while also ensuring that the most popular pools receive the most support.

Use The Graph to retrieve data on which strategies are most popular among users. This can inform the decision-making process around which pools to boost with governance tokens, and also help the team identify areas for improvement or expansion.

Leverage Polygon and other secondary EVM chains to attract users who are looking for faster and cheaper transactions. By offering a seamless, low-cost trading experience, Yieldex can attract a wider range of users, including those who might not have otherwise considered using a decentralized exchange.

Security:

YielDex takes security very seriously and has implemented several measures to protect users from potential attacks. One such measure is the use of Chainlink as a second price provider in swaps. This helps to reduce the possibility of MEV (Miner Extractable Value) attacks, which can occur when a miner manipulates a transaction to their advantage to extract additional value. By using a second price provider, YielDex can ensure that prices are accurately reflected in transactions and reduce the possibility of such attacks.

Gas Fee:

Transaction fees, also known as gas fees, are a necessary aspect of using decentralized protocols like YielDex. However, these fees can sometimes be manipulated by nodes that wish to overstate transaction fees, leading to higher costs for users. To protect against such attacks, YielDex will use an oracle for gas fees. This will help to ensure that fees are accurately reflected and prevent users from being overcharged. By providing a transparent and fair fee structure, YielDex aims to create a more accessible and user-friendly DeFi ecosystem for all.

Overall, a sales strategy that emphasizes the benefits of governance tokens can be an effective way to drive user adoption and increase trading volumes on Yieldex. By building a strong community around the platform and giving users a direct stake in its success, the team can create a sustainable and profitable DeFi ecosystem.

10. The Team

At Yieldex, we are committed to upholding the highest standards of ethical behavior and promoting the principles of trust, transparency, and accountability in all aspects of our business. Our ethical credo reflects our commitment to the following values:

We believe that everyone should be treated with respect and dignity, and that our products and services should be accessible to all, regardless of their background or financial status. We strive to be open and transparent in all our dealings, providing clear and accurate information about our products, services, and fees.

We are committed to protecting the privacy and security of our users' personal information and assets, and ensuring that our systems and processes are robust and secure. We recognize that we have a responsibility to contribute to the well-being of society, and we seek to do so by promoting financial inclusion, supporting community initiatives, and minimizing our environmental impact.

We comply with all applicable laws and regulations, and we strive to maintain the highest standards of compliance and regulatory compliance in all aspects of our business.

As a team, Alfred, Nandy and Adam are committed to upholding these values and incorporating them into our daily operations, and we encourage our users and partners to hold us accountable to these principles.

11. Technical Roadmap

Q2 2023:

Receive grant and support from BSCPA to develop the team and further advance the solution

Conduct pre-seed fundraising to secure initial funding for the project

Conduct the first audit to ensure the solidity of the smart contract code

Begin development and testing of the Yieldex solution on a testnet environment

Conduct a bug-bounty program to identify and resolve potential security issues

Q3 2023:

Complete the development and testing of the Yieldex solution on the testnet environment

Conduct a second audit to verify the security and stability of the platform

Initiate the seed fundraising round to secure additional funding for the project

Prepare for the official deployment of the Yieldex platform

Q4 2023:

Finalize the development and testing of the Yieldex platform and prepare for its launch

Conduct a third and final audit to ensure the platform's security and reliability

Launch the Yieldex platform on the mainnet

Begin marketing and promotion efforts to attract users to the platform

Q1 2024:

Evaluate user feedback and make any necessary improvements or adjustments to the platform

Continuously monitor and improve the security of the platform, including the use of Chainlink as a second price provider and an oracle for gas fees

Explore potential partnerships and integrations with other DeFi protocols to expand the platform's offerings

Focus on user acquisition and adoption through various marketing and community-building initiatives.