Yamp Finance Aims to Unlock the Potential of a $6.8 Billion LP DeFi Market

Labelled the Aave of LP tokens, Yamp allows the cross-chain borrowing and lending of LP Tokens, opening up a new dynamic for LP token rewards and impermanent loss.

6 min readJul 14, 2021

Decentralized Finance (DeFi) is finally starting to get the recognition the industry has long sought after. The lure of high yields and interest rates that dwarf traditional finance has seen the rise of the likes of Aave, Compound, Maker DAO, and Curve Finance.

Decentralized exchanges and AMMs such as Uniswap, Pancake Swap, and QuickSwap have been an integral part of the DeFi movement, and our next and first-ever QuickStart Certified IDO aims to be the first to unlock the potential of the huge $6.8 billion LP market they have created.

Yamp Finance arrives on QuickStart and is available first, exclusively to Starters. Here’s what you need to know about this revolutionary new DeFi primitive:

What is Yamp Finance?

Yamp.Finance is an automated crypto lending platform for users of Polygon, BSC, ETH and SOL.

It provides one of a kind benefits to both lenders and borrowers by being the first and only platform designed to use LP tokens as collateral for automated lending across 4 different blockchains. This virtually eliminates the risk of impermanent loss to liquidity providers.

For borrowers, Yamp is the only DeFi protocol that can allow 10x or higher leverage across 4 blockchains on borrowed positions with a fundamentally much lower liquidation risk.

For more tantalising detail be sure to read up on the Yamp Finance Docs: https://docs.yamp.finance/

The DeFi LP market

Over $1 billion USD is traded every day on automated market-making (AMM) exchanges like PancakeSwap.

All AMM exchanges require liquidity providers to hold locked LP tokens, on which they can earn yields as a share of transaction fees.

However, there is an opportunity cost to locking funds in LP tokens. Yamp Finance solves this.

There is over $6.8 billion locked in LP tokens on AMM exchanges, and this amount is growing daily. Yamp brings together liquidity providers and borrowers to solve mutual problems.

Borrower benefits

Use LP Tokens from supported AMMs as collateral
Borrow a token using collateral backed by that token
Earn yields on QuickSwap & PancakeSwap with leverage up to 10x
Reduce risk to impermanent loss

Lender benefits

Earn interest on any token tradeable on supported AMMs
Indirectly provide liquidity without any exposure to impermanent loss
Your loan is collateralized by LP tokens backed by the tokens you lent

Tokenomics

$YAMP is a simple, fixed-supply governance token. $YAMP holders will have voting power on interest rates, fees, and distribution of earnings on this and all future Yamp Finance products.

The total supply is 70,000,000 $YAMP. How does Yamp Finance incentivise people to use their borrowing & lending services? Well, they take a leaf out of Aaves book with token rewards…

YAMP Yield Farming — With Leverage

The tokenomics plan allocates 50% of the supply to farming rewards over 4 years, which will distribute $YAMP tokens to borrowers based on the size of their loans.

This is a proven model that attracts early borrowers and increases the interest rates they are willing to pay to lenders. The higher the leverage, the more yield you can farm. This can quickly increase the demand for loans.

This is designed to create a day 1 feedback loop that provides stronger incentives to lenders, generates revenue and, ultimately, increases the value of the $YAMP token.

$YAMP revenue model : Hold $YAMP to earn passively

Interest income is automatically split, with lenders collecting at least 80% and Yamp Finance collecting up to 20% of each payment.

The 20% collected will be used to market-buy and burn $YAMP, ensuring there is steady buy pressure, volume, and increasing token scarcity.

There is also a 0.1% flat borrowing fee on each loan, which is similarly split. These fees can be adjusted by governance for further optimization.

Token Distribution

Seed — 2,000,000 — 20% unlocked, vested 20% monthly using $VEST

Private — 7,500,000— 25% unlocked, vested 25% monthly using $VEST

IDO — 5,000,000 — 10% unlocked, 10% vested daily using $VEST.

Farming — 35,000,000

Team — 6,000,000 — First year locked. 12.5% unlocked each quarter

Partnerships — 6,000,000 — 12.5% unlocked each quarter

Marketing — 6,000,000 — 12.5% unlocked each quarter

Liquidity — 2,500,000— Locked for 1 year

Total — 70,000,000

Roadmap

IDO Details

The Yamp Finance IDO will take place exclusively on Starter.xyz (Polygon).

The Yamp Finance team have completed KYC with Assure Defi: https://www.assuredefi.io/projects/yampfinance/

Yamp Finance has been audited by RD Auditors: https://docs.yamp.finance/contracts/audits

Date: 14:00 UTC, 22nd July, 2021
Guaranteed Allocation: Yes, headstart 15 minutes. Diamond Hands FCFS starts at 14:15 UTC
Direct Link: https://starter.xyz/#/pool/2

Initial market cap: $177k

Softcap: $100,000 USDC
Hardcap: $200,925 USDC
IDO price: $0.040185 USDC/Token
Listing price: $0.040185 USDC/Token

Liquidity allocation: 50%
Liquidity locked: 90 days

Due to market volatility Yamp have chosen to change the raise currency from QUICK to USDC. QUICK/START LP will still be required to be staked on QuickSwap.Exchange for entry*

What to expect on IDO day (22.07.21)

Yamp Finance will be launching its permissionless borrowing, lending, and leverage protocol shortly after the completion of IDO. This means users can start depositing LP tokens for lending and begin borrowing — right away!

QuickSwap have also announced that they will be creating a YAMP/USDC Rewards pool on IDO day! Allowing YAMP/USDC LP Token stakers to earn huge APY and rewards in QUICK from the moment they receive their tokens!

How to take part in the IDO

You will need a minimum of 3.5 QUICK/START LP (on a first-come-first-served basis) to take part in the Yamp Finance IDO — this must be staked in the QuickSwap.Exchange rewards pool here: https://quickswap.exchange/#/quick/0x6Ccf12B480A99C54b23647c995f4525D544A7E72/0x831753DD7087CaC61aB5644b308642cc1c33Dc13/0x77eB20d5eB77b6ba543734d903FE1259d551cbd3

You can then purchase in the IDO on Starter.xyz when the pool is created. Stay tuned to the Starter website and Telegram channel for announcements.

35 QUICK/START LP will give you a guaranteed allocation. And the rule is the more QUICK/START LP you stake, the more $YAMP you will be allowed to buy during IDO. $YAMP must be purchased with $USDC.

For a comprehensive guide on how to take part in the Yamp Finance IDO, including how to set up an online wallet, and where to get QUICK, START & MATIC, please see here: https://starterxyz.medium.com/guide-how-to-take-part-in-the-yamp-finance-ido-on-starter-a9e45ab1d53a