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$CBLP Tokenomics
The CBLP token is the native governance and utility token of Yamfore. It is required to use the protocol’s services, and it provides a decentralized and transparent method for individuals with the most monetary stake in the protocol to participate in governance. The CBLP token has three main attributes: Utility, Growth, and Governance.
The CBLP token is the native governance and utility token of Yamfore, and is a key requirement for using its lending services. The token underpins the entire functionality of the protocol’s lending mechanism, and there is a total fixed supply of 1 billion CBLP tokens. Yamfore is committed to a community-focused token distribution, with 75%+ of the tokens allocated to community members. This ensures that the CBLP token is distributed to those who are most supportive of the protocol’s success, not just to a select few affluent individuals.
Tokenomics Breakdown
Cardanoscan:
https://cardanoscan.io/token/ee0633e757fdd1423220f43688c74678abde1cead7ce265ba8a24fcd43424c50?tab=transactions
Policy ID:
ee0633e757fdd1423220f43688c74678abde1cead7ce265ba8a24fcd
Fingerprint:
asset1vha2kdkxfegsam7qxr5hw8h7yglg9aljcphxph
*Note: Anyone can easily identify the official team wallets by searching for their respective ADA handles. This was deliberately done to ensure full transparency of funds*
$CBLP Treasury ( $yam_treasury )
5% of $CBLP will be allocated for the $CBLP treasury, which enables individuals to indirectly provide liquidity to Yamfore via the $CBLP auction portal.
Community ( $yam_community )
50% of $CBLP will be allocated to the community, with all generated revenue going towards bootstrapping the stablecoin treasury via the Fair Token Offering (FTO)
Miscellaneous ( $yam_misc )
20% of $CBLP will be allocated for miscellaneous development costs. These included: $CBLP liquidity provision, auxiliary development costs, community building initiatives, partnerships, bug bounties etc
The value of the CBLP token is primarily tied to the success and longevity of the Yamfore protocol. As Yamfore captures more market share, users, and liquidity, the demand for CBLP tokens will remain present and growing.
Yamfore generates revenue from a range of fees on all issued loans, including a CBLP flat fee, accrued interest repayments, and ADA staking rewards. This revenue is sent to the stablecoin treasury, which facilitates further loans and increases the number of borrowers that can be serviced. This influx of capital also drives growth for CBLP tokens in the secondary market, as more people seek to borrow from the newly available capital, thus having to acquire CBLP in the open market.
There is always a base lending rate that the market is willing to accept. When the CBLP flat fee exceeds this base rate, no individual is inclined to open a loan position, due to the unfavorable terms. This base lending rate is constantly changing and dependent on general market sentiment, as well as a host of other economic factors. It is the responsibility of CBLP token holders to ensure that the base lending rate is always appropriately set for the current market conditions through governance. One indicator of achieving this base rate is that the stablecoin treasury is always empty due to consistent demand.
Growth Cycle
Demand: As the protocol is continuously utilized by users seeking crypto-backed loans, the CBLP token which is required to utilize the protocol sustains demand, due to its utility.
Funding: The revenue generated from the CBLP flat fee, accrued interest repayments, and ADA staking rewards are all sent to the stablecoin treasury to facilitate further loans. This influx of funds increases the amount of capital available to be lent to borrowers.
Growth: This influx of capital drives growth for the CBLP tokens in the secondary market, as more people seek to borrow from the newly available capital, thus acquiring more CBLP in the open market.
The CBLP treasury is another key component to the growth attribute of the CBLP token. Yamfore holds an internal treasury that will initially contain 5% (50 million) of the total fixed supply of the native governance and utility token, CBLP. This treasury, known as the CBLP treasury, enables individuals to indirectly provide liquidity to Yamfore by depositing their stablecoins into the protocol’s CBLP auction portal. In return, individuals will acquire an allocation of CBLP tokens that is determined through fair market supply and demand mechanisms.
The CBLP treasury aims to accelerate the growth of the protocol’s stablecoin reserves by directly converting a portion of the value generated in the CBLP markets into stablecoins to facilitate further loans and increase the number of borrowers that can be serviced by the protocol. This is a long-term initiative that aims to accelerate the growth of the protocol’s stablecoin reserves in a self-sustaining manner without significant drawbacks to the price appreciation of the underlying CBLP token. The CBLP treasury’s vesting schedule is a lending parameter that can be controlled by CBLP token holders through governance.
The distribution of the CBLP tokens stored in the CBLP treasury occurs through the CBLP auction portal. At the start of each epoch, a set amount of CBLP tokens are made claimable from the CBLP treasury. Individuals can deposit stablecoins to the CBLP auction portal in between epochs to be eligible to claim a portion of those CBLP rewards at the start of the next epoch. Those stablecoin deposits go directly to the protocol’s stablecoin treasury and are immediately lent out.
The wallet addresses of all stablecoin depositors are given the right to withdraw a certain percentage of CBLP from the total amount of CBLP tokens made claimable at the start of a new epoch. The amount claimable by a wallet address is directly tied to the total value of stablecoin deposits made by the wallet during the previous epoch, when compared to all other depositors. For example, if a wallet address was responsible for 1% of the total value of all deposited stablecoins sent through the auction portal within an epoch, versus all other wallet addresses, an equivalent 1% of the total amount of CBLP tokens set to be claimable for that epoch will be redeemable for that wallet address at the start of the next epoch.
The CBLP auction portal event is continuously occurring with rewards being calculated and claimable on a per-epoch basis. This CBLP auction portal takes a fair supply and demand-driven approach to token distribution, similar to that of the NFBO.
To better understand the capital inflow of all the discussed financial mechanisms of the protocol, we have provided a visual diagram below that showcases the money flow and self-sustaining nature and growth of Yamfore.
Capital Inflow
Yamfore utilizes a unique and novel approach to governance called “Progressive Governance”.
Progressive Governance aims to enable more participation in decentralized governance by simplifying the process and removing the multiple points of friction that average DeFi users experience. For example, Progressive Governance eliminates the need for users to sign up for third-party forums or social media platforms in order to participate in governance. Instead, all governance activities are conducted on-chain, which ensures that the process is autonomous and neutral, and that all CBLP token holders have an equal say.
Below is the list of on-chain protocol parameters controlled via Progressive Governance :
Protocol Parameters
Progressive governance remains a heavy work in progress, with more details scheduled to be released at a later date.
Yamfores' vesting schedule is simple and straightforward. The team's token allocation will be fully distributed over two token unlocks: the first on January 1, 2024, with 82.5 million $CBLP tokens unlocked, and the second on January 1, 2025, with the remaining 82.5 million $CBLP tokens unlocked.
Read the full vesting schedule breakdown here:
https://yamfore.medium.com/yamfore-token-vesting-schedule-4a4b1510f6b4
This vesting schedule is visually illustrated below:
Vesting Schedule
Last modified 3d ago