Whitepaper

Table of Contents

Executive summary

This last year in cryptocurrency has clearly shown the connection between the traditional finance world and the new blockchain-based era. Providing services in the crypto space doesn’t automatically mean that your services will align with the blockchain concept.

Many companies working with cryptocurrencies are entirely centralized. The bear market and persistent liquidity issues surprised customers and investors this year.

Participants lost billions in digital assets. Companies and regulators faced no liability, leaving participants feeling frustrated and overwhelmed.

The decentralization of blockchain prevents these circumstances and allows customers to regain control over their assets without compromise.

On the one hand,

  •  interacting directly with decentralized services can be technically complex and include the risk of errors and loss of assets.
  • The market shows more than 100,000 different cryptocurrency projects. For participants, it may be challenging to determine the best fit for them and which offers a passive return possibility.
  • Finding suitable projects and evaluating and interacting with them can be complicated and unsuitable for the mass market.

    On the other hand,

  • participating in business sectors like decentralized finance, lending, or staking can add tremendous value to every portfolio.
  • Possibilities participating this market generates sustainable and reliable cash flows.

 

YieldFlow identifies several opportunities for providing value and solving issues for these cases. Focusing on complete decentralization, anonymity, and cybersecurity will enhance customers’ journeys and build a sustainable and profitable experience. Eliminating technical complexity and preparing for the mass market by following the recommended key aspects will attract a wide range of customers.

Optimal portfolio management indicates how companies can balance risks and rewards. Additionally, automating complex processes will also help. Customers should focus on wealth generation rather than on technical processes or difficulties.

The mission of YieldFlow is to generate an easy-to-use, sustainable, profitable, and anonymous cash flow by providing smart contracts-based, automated, and preselected investment opportunities.

Actual situation

Centralisation

In terms of financials and assets, the worldwide economy is entirely centralized. This includes real estate, financial transfers, investment, stock market, commodities, and communication. A significant advantage to centralisation is how easy it is to implement and execute regulations. The downside is that a small number of services, companies, and individuals play the game to their advantage and maintain control over all processes. With centralized services, customers are 100% at the mercy of the providers, who can also make retroactive changes

The main argument against centralisation and for decentralized services is the arbitrariness and trust in people. For decentralized services, participants don’t know each other, so there is no basis for a trustful relationship. However, because of the popularity of centralised processes and the lack of other alternatives, centralised processes are generally accepted.

Figure 1: Representation of a classic central service

Due to a lack of transparency, the general public is not well-informed on how centralised processes run and who runs them. We can assume that this is how the people running the centralised processes want as it seems easier to control and observe several financial institutions than hundreds of millions of participants. Furthermore, governmental regulation and this service enhance their power and control.

The two main issues of a centralized power involve a lack of balance between participants and the willingness to adopt technological inventions. Since the beginning of the Internet and the digitalisation of information, only a handful of people need to observe a worldwide system. Digitalisation has made it unnecessary to implement a physical control system.

The financial industry provides an efficient method to observe a wide range of human activity. Nearly every business interaction involves a financial transaction. Establishing a system of efficient observation contributes to governmental control and provides organizations that provide the infrastructure with an advantage. Finally, it must be stated that accepting the rules of a normal private or business life would be nearly impossible without participating in the system.

Blockchain – a new era for decentralized services

Blockchain technology was created to directly connect numerous parties without a centralized third party. The subject of trust is based on technology secured with proper management, transparency, and power of control.

Yieldfield-Whitepaper_Grafiken-02d

Figure 2: Representation of a classic decentralized service

In the last years, blockchain impacted nearly every industry worldwide and shown value added. Connecting the world through trustful technology and excluding the third party is revolutionizing how processes will be designed.

For regulators and the centralized services, the race is underway to ensure the prior system and power of control.

Digital assets

The most recognized application for blockchain is in financials, especially digital assets. Following the basic idea of blockchain enables direct interaction by transactions and even self-custody storing digital assets and value. There is less demand for third-party involvement, and the conflict with centralization has been accelerating in recent years.

Regulators who base taxation on financial transactions face an enormous challenge to keep control and run the actual system properly. On the other hand, implementation of KYC or proof of funds in the crypto space is fast shot to keep control and delay to adopt.

For the first time, blockchain created the possibility to store and secure value personally and without the knowledge of other parties. Centralized services are not needed anymore, and participants interact directly.

The only lack in the cryptocurrency ecosystem is to cover all three financial demands: 

SPEND – INVEST – EARN

Cryptocurrency faces a tremendous increase worldwide as more possibilities occur. Individuals can use cryptocurrency to buy consumer goods, cover daily expenses, and even pay taxes in some areas. The compromise to interact with the fiat financial system regarding KYC and proof of funds is necessary to fulfil the regulations to unleash the full usage potential.

The possibility of investment is generally given in the cryptocurrency industry by acquiring digital assets, like tokens, coins, or even NFTs. Participating in cryptocurrencies or digital assets has shown unprecedented returns over the last years and is done by retail and institutional investors. Value is created by new solutions in the space to solve problems and return their investors value added.

Figure 3: Illustratation of the development of the total cryptocurrency market capitalization and why participation is advisable. Distinctive for this market is the above-average volatility, seen as a long or even mid-term investment. Projects can outperform the index > 1.000 times, and even a small investment can make millionaires.

Earning cryptocurrencies or digital assets is a different story and mostly not that easy for common users. Currently, the biggest hurdle with decentralized solutions to build assets is the existing complexity of the processes. Solutions exist, but they require often base skills in IT or finance. Due to the young age of this whole business area, processes and possibilities are not as convenient and easy as they are in the traditional finance industry.

Furthermore, is digitalisation per se a new area for especially older participants who are additionally influenced by media of the traditional systems? Beneficiaries of the traditional financial system want to secure their advantage like it was always.

Smart Contracts

Since the invention of the Ethereum Network, smart contracts had a fixed place in space. Deploying contracts follows the simple rule of “If . . . then . . . or . . . else.” A digital contract is resistant to change after deployment and checkable in advance by all parties.

Figure 4: Explanation of smart contracts

Smart contracts are the secret the success of Ethereum. Many other projects have implemented them, too. Today, it is an indispensable function used millions of times daily.

The great uncertainty of technologies in centralized solutions.

With the current state of the Centralized Exchange (CEX), hacks, and insolvency, users seek stability and safety in fully decentralized systems. Such systems are built on various blockchains and technologies.

What must be changed?

Centralized services have overtaken most of the earning part in the cryptocurrency market because it is easy and suitable for the masses. You can create a user account or connect via Web3. With just a few clicks, your assets will begin working for you, as they know it from centralized, traditional financial systems. Centralized services promise security, transparency, and sustainability. These actors are briefly like the traditional financial system. They act in the cryptocurrency business but also bring old problems along.

Few actors solve a problem without bringing several new issues with them like security issues, human decisions, changing conditions, and greedy individuals. Additionally, the trade-off between easy-to-use systems and the security of a centralized service is often not to the advantage of the customers. Customers assume they are as safe as blockchain, but they are not.

In 2022, we have seen a ridiculous amount of assets wiped out and customers who have lost billions of USD in digital value because of such companies. Regulations failed to provide any security or liability to customers who needed it. Worrying circumstances if companies declare bankruptcy and remaining assets are not handed over to the financially damaged customers. In the conditions, text passages demonstrate that customers have voluntarily presented their deposits and refunds from the company. A huge marketing budget ensures these garner billions in assets, while a broad media presence allows social media influencers to contribute more attention to the space.

Centralized services mostly look like blockchain, but not all of them.

However, if staking, lending, or decentralized finance is done without such a service, all the advantages of blockchain will remain.

The unbeatable advantages of decentralized financial systems are: Anonymity, transparency, security, and self-custodial are key factors.

The issue is not the blockchain-based service. It’s the centralized link to them.

YieldFlow – Our solution for decentralized services

We passionately believe in a financial world based on trust, security, and anonymity enabled by smart contracts. Our goal is to enable financial sovereignty for everyone. The available technology provides all the necessary parts of a decentralized environment covering the term “earn.”

Investing in cryptocurrency assets does not mean just “hodling” them. We aim to grow your portfolio in a secure, anonymous, and decentralized way, and we have achieved it with YieldFlow.

What is YieldFlow about?

We offer a solution by removing technical complexity from the equation for our customers. A team of blockchain and finance experts valued and preselected all the investment possibilities on YieldFlow and covered the main passive flow streams, such as staking, lending, and liquidity mining at the beginning. We will further implement new pairings and technologies to maximize customers’ security, anonymity, and profitability.

We will make choices based on the customers risk and reward awareness. We can do this for free. The real-time yields, which generate flow to your portfolio, are calculated based on blockchain data. We automize liquidity mining for our customers by the usage of smart contracts to ensure the optimal setup regarding profitability.

Routing the customers assets via smart contracts to the different protocols eliminate the complexity and ensures a sustainable and positive journey in the passive earning space.

The principles of anonymity, self-custody, high-end security, and sustainability always represent the pillars of Yieldflow.

With Yieldflow, we are creating a unique framework for decentralized services in the crypto industry. Within this framework, the values of true decentralized solutions are enabled.

Figure 5: Illustration of the relationship between user, YieldFlow and DeFi.

 

Staking

Providing digital assets and enhancing the infrastructure of specific and preselected projects returns a stable and minimal risk-affected cash flow. Staking is the baseline of most portfolios and provides a solid fundament.

Lending

Providing assets to other participants has become a trend in cryptocurrency. Interacting with financial institutes from the traditional financial field is complicated and not well-balanced. Since the debtor must bring collateral, which exceeds the liability, on average more than 120%, the lender is saved. Newer trends also allow NFT collaterals and based on decentralized protocols. It follows the pillars of YieldFlow.

Decentralized finance

Decentralized finance (DeFi) provides high returns, but it brings risk. Providing liquidity to DeFi for trading, swapping, or shifting digital assets must be managed accurately. If made properly, it rounds off a portfolio and enriches with high returns.

YieldFlow actively manages the DeFi investments by smart contracts and ensures a perfect risk-reward balance. Contract-based management is utterly unique at YieldFlow, especially with smart contracts. Achieved earnings are far ahead of other services and follow the pillars of YieldFlow.

YieldFlow offers highest security

Starting your journey with us by creating a Web3 login. Your account will be anonymous and secure. You will only interact with smart contracts verified and audited by third parties. The contracts only deal with you regarding your assets. We and all third parties are fully excluded.

Nothing is safer than storing your assets with a smart contract. Additionally, your assets are not shown on your public wallet address. The contract keeps them safe like an electronic safe, with the only difference being that your assets work around the clock and generate a flow of yields for YieldFlow.

In the technical section of the white paper, you will find specific smart contract addresses. Yieldflow is fully transparent. We believe in securing your assets.

YieldFlow guarantees your anonymity

Yieldflow follows the pure belief of blockchain. Anonymity is a key pillar of this experience. We don’t track or record any information to ensure your anonymous experience. Furthermore, we integrated services to keep you anonymous and protect your privacy.

YieldFlow does not offer fiat gateways. We only use cryptocurrencies, so there is no need for KYC.

YieldFlow is fully decentralized

Our smart contracts are deployed on several blockchains, are fully decentralized, developed by highly-experienced experts and verified and audited by third parties. We only offer Web3 login to protect your assets and avoid the need to store user data.

YieldFlow service is entirely self-custodial

Not your key, not your coins. This old but true sentence shows the unique feature of blockchain. The smart contracts only interact with you regarding your assets and no one else.

Technical Overview

Users seek security and stability in fully decentralized systems. The main elements are smart contracts, decentralized programs living on the blockchain. They are fully immutable and do not need a counterparty because everything is completely automated via code.

For YieldFlow, our main goal was to find existing revenue-generating protocols and blockchains that make it easy and transparent for new users to take advantage of those opportunities. YieldFlow aims to reduce friction when interacting with complex smart contract systems and make onboarding possible for every user, regardless of their previous knowledge of blockchain and Web3 technologies.

At its core, the YieldFlow protocol can dock into every EVM compatible yield or revenue-generating protocol and make a “one-click” zap-in solution possible for the end user. In the early stages, native staking of Layer1 blockchains, such as Polygon or Fantom, will be supported. In addition to that, we have battle-tested protocols, such as Aave and Uniswap.

The token of the YieldFlow protocol, $YFlow, will play an essential role in the ecosystem.  We use $YFlow to generate staking rewards, increase commissions, and lower withdrawal fees. Token holders will also be able to participate in governance and create proposals to ensure a full decentralization of the protocol.

 Protocol Overview

The YF protocol consists of various smart contracts deployed on EVM-compatible blockchains. The abstraction layer is found on the web application, letting users interact directly with the protocol using their favorite Web3 wallet.

In the following section, we have listed the core smart contract and how they interact with the existing protocols for yield generation.

YieldFlow Protocol Architecture

Figure 6: YieldFlow Protocoll Architecture

Single Asset Staking Contracts (SASC)

We will use these contracts to interact with the smart contracts of the staking/lending and liquidity provider (LP) protocols. Users can stake their tokens via the interface contracts, which forward the requests directly to the yield-generating protocols. All chosen yield-generating protocols are fully audited. In the first phase, they are chosen by the YieldFlow team. It will be possible to add new protocols to the staking contracts through governance proposals.

The ownership of those single asset staking contracts will be transferred to the time lock contract, meaning only through governance proposals will there be an option to execute administrative functions. No single entity will control the contracts.

All the yield will flow back into the SASC contracts and can be claimed by the users via the YieldFlow frontend. Those programs will be deployed on multiple chains to capture more exposure to different networks.

Below is a list of yield-generating, smart contracts the SASC will interact with:

Fantom Staking: https://ftmscan.com/address/0xFC00FACE00000000000000000000000000000000

Polygon Staking (Validator ID subject to changes due to reward changes): https://etherscan.io/address/0x857679d69fE50E7B722f94aCd2629d80C355163d

Aave (example): https://etherscan.io/address/0xEFFC18fC3b7eb8E676dac549E0c693ad50D1Ce31

There will be a deployment for each staking type. This designation means that, in new staking pools, only a new deployment must be made and integrated into the YieldFlow protocol. Additionally, all characteristics of the origin staking contract, like functions and views, will be accessible on the SASC contracts. This will allow individuals to implement YieldFlow contracts into other DEFI protocols and strategies without enormous additional integration work.

Staking Manager Contract (SMC)

The staking manager contract will keep track of each deposit, withdrawal, and affiliation strategy.

New referrals to the YieldFlow protocol will be saved immutable into this contract (i.e., separate deployments per EVM chain). During the fee yield distribution, this contract provides a view function to all its satellite SASC contracts. The final distribution is calculated according to $YFlow as staked by a) the signer and b) the addressee who requests a payout from the system.

The fees will have an initial value managed by the SMC and can be changed through a proposal in the governance module.

$YFlow Token

The YieldFlow Token ($YFlow) is the governance token of the YieldFlow protocol. It is possible to use $YFlow in the following ways:

$YFlow can be used for governance. Each token holder has an equal weight of proposal power according to the amount of tokens held in his wallet. At a certain threshold, it will be possible to create proposals for the future development of the YieldFlow protocol. Each address holding $YFlow can vote on proposals and actively participate in governance.

$YFlow can be staked in single-asset staking or LP-staking (Uniswap V2 LP positions). Stakers will earn yield in $YFlow tokens in each staking pool. There will be various options in the staking terms according to lockup periods. Longer lockup periods will result in higher yields.

We will use the $YFlow token to ensure future development of the protocol and cover the costs. Initially, $YFlow will be paired against ETH on Uniswap to create the first liquid AMM market with deep liquidity.

Governance Module (GM)

The governance module will consist of two smart contracts:

  1. Governor Alpha
  2. Time Lock

The time lock smart contract will become the owner of all smart contracts in the YieldFlow protocol. This will remove the “admin keys” from all contracts and make it only possible to perform any powerful action and upgrade via governance. The time lock ensures that if a proposal passes, the call data is executed after a certain time. The time lock can call any function on any contract through an arbitrary data call.

We will set up the main governance module on Ethereum, but as needed, additional deployments will be made on each EVM chain where YieldFlow operates.

The Governor Alpha module will be a fork of the already audited Compound Protocol smart contract, which is already battle-tested on the ETH main net.

The governor smart contract will create proposals for $YFlow token holders to upgrade governance. In addition to that, $YFlow can vote yes or no on existing proposals. If a proposal passes, the call data will be passed on to the time lock smart contract, where the proposal is then finally executed.

This battle-tested solution of time lock and governance will ensure that YF will evolve into a community ($YFlow holder) owned protocol without any need to trust a third party.

$YFlow Staking Single Staking Contract (YSSC)

$YFlow tokens can be staked in the YSSC contract to generate yield. The yield is an incentive flowing from the protocol treasury. Stakers will get benefits regarding fee reductions and yield generated from the YF protocol smart contracts.

The yield generated from staking in the YSSC will vary regarding the lockup period.

There are three initial staking options:

  1. 6 months lock
  2. 12 months lock
  3. 36 months lock

The yield tokens can withdraw at any time and can also be restaked in the YSSC.

The YSSC will also be extended to manage Uniswap V3 positions. Users can stake their V3 positions in the contract. A watcher bot will monitor the borders of the liquidity position per NFT staked in the contract and adjust the borders to be more profitable over time. This way, users do not need to care about adjusting positions as the market price changes. YieldFlow will automate these tasks in combination with a smart contract and achieves significantly higher yields.

 
Notice: For the implementation, the NonfungiblePositionManager contract of Uniswap V3 will be used, allowing users to increase or decrease liquidity per NFT position and rearrange the borders of the liquidity. Additionally, $YFlow-based positions can be staked in the UniswapV3Staker contract, where an incentive program will be created to earn $YFlow tokens.

$YFlow LP Staking Contract

Liquidity provided to $YFlow- xxx pairs will issue liquidity provider (LP) tokens. These tokens will earn trading fees and can be staked in the YFLPSC to earn $YFlow as a reward. There will also be different lockup times, varying in the total amount of rewards paid out to the Stakers over time.

YSSC and YFLPSC will offer view functions that will be consumable by the SMC to determine the amount of reward fees affiliates will get and how much the management fee will be in the case of a withdrawal from the YF protocol.

YF – Smart Contracts

Below is a list of yield generating smart contracts the SASC will be interacting with:
 
Fantom Staking:
 
Polygon Staking (Validator ID subject to changes due to reward changes):
 
Aave (example):
 
Sand Staking
 
There will also be yield generating products making use of the Uniswap V2 protocol. A list of used LP contracts:
 
LINK-WETH
MATIC-WETH
WETH-USDT 
AAVE-WETH 
WBTC-WETH 
WBTC-USDC 
MANA-WETH 
SAND-WETH 
UNI-ETH 
BAT-WETH 

https://etherscan.io/address/0xb6909b960dbbe7392d405429eb2b3649752b4838

HEX – WETH https://etherscan.io/address/0x55D5c232D921B9eAA6b37b5845E439aCD04b4DBa

PEPE – WETH https://etherscan.io/address/0xA43fe16908251ee70EF74718545e4FE6C5cCEc9f

RNDR – WETH https://etherscan.io/address/0xC0a6BB3D31bb63033176edBA7c48542d6B4e406d

SHIB – WETH https://etherscan.io/address/0x811beEd0119b4AfCE20D2583EB608C6F7AF1954f

OCEAN – WETH https://etherscan.io/address/0x9b7DaD79FC16106b47a3DAb791F389C167e15Eb0

V3 LP contracts on ARB

WBTC – ETH 0xe2e7068442788d5523337a3ac8dd873C6954276F

ARB – ETH 0x5e12B9BD41A18FB96eB8D03c08523057647e0CbD

LINK – ETH 0x49dcf2807A5e4336F25dDC8f7369f70317470173

RDNT – ETH 0x0FE1853aAa799f6f84222f0a2CA49DC78F52E6B8

GMX – ETH 0xa1607f9D2c8D1E32D6c57B5c060B37b38cAA85E0

USDT – ETH 0xB962f0Bda748967563Ebba13943306f36AE1cC91

USDC – ETH 0xAb9072143d34D864A8401eaAC9138c654D845876

ARB – USDC 0x12E98519d2cdB6cC97f0f4Ce2Af4dE031F01135d

PENDLE – ETH 0x6c33409bf2fe5cE2f862013cece54ad9aD7AcaE6

RWA – ETH 0xEdA3Cf04de48CAaAEB926A4DfEb660ea1cbA35A7

LINK – ETH (2) 0x2785ddE5665AAEb2C585d37CC2cF30041fD2813d

MAGIC – ETH 0xca5F3403A2C26700873197C838f73d8B1157A7eE

Fee structure

Our customers will be charged by two different fee types:

Figure 7: Fee structure

All two fee components depend on the YieldFlow Token YFlow. The more you stake, the less you pay. This way, we can reward investors who stay with the project and be sustainable partners. 

A performance fee is calculated based on your earnings. It is 100% performance related. If you earn, we earn. Last is the management fee based on your deposit annually.

But we don’t keep it, see how you can participate.

Unlike other projects YieldFlow does not take any deposit or withdrawal fees!

Recommendation program

To motivate our community, we are spreading the spirit and actively promoting the project YFlow. Our YieldFlow Utility Token rewards it. We share up to 90% of our fees with our community. For details, see the table below:

Figure 8: Recommendation Program

We track your recommendations and reward you with up to 25% of your performance fee and up to 75% of the management fee. Participating in our project is an essential aspect of YieldFlow. That is why we share most of our income with the YieldFlow community.

The Flow by YFlow

Investing and owning YFlow enriches every digital asset portfolio and elevates it to the next level. By participating in five different ways, YFlow is a passive flow-generating token:
  • Participate in performance fees of up to 25%
  • Participate in management fees of up to 75%
  • Participate in staking up to 20.50%
  • Save own fees in performance fees
  • Save own fee in management fees
Bring flow to your portfolio with YFlow.

Utility Token – YieldFlow Token

By our recommendation program, your utility token YFlow enhances the experience by reducing fees and contributing to your flow of yields.

Tokenomics

YieldFlow Token: YFlow Max supply: 50.000.000 Distribution is as follows:

Figure 9: Tokenomics

As stated in the distribution, our essential aim is to run the staking for the community for up to 10 years. This will ensure long-term staking cash flow for our community.

Staking

As mentioned, we followed the sustainable approach at YieldFlow and calculated the Proof of Stake rewards and total supply for ten years.

We offer to stake with three different lock durations, as stated below.

Figure 10: $YFlow staking rewards per year

The Vault is for our long-term partners and includes 36 months lock. The staking reward increased significantly based on the 12-month option.
2023

Integration of DeFi with BOT automation

Integration of DeFi Services like UniV3 and deploy a bot which is automatically ensuring optimal parameters in DeFi

2024

Implementation of non-fungible tokens

Access unique features and YieldFlow fee sharing

2024

Integration of smart flow models to connect staking - lending - defi to one product

Combining Lending – Staking – DeFi into single products to enhance yields

2024

Integration of digital real estate assets / art assets

Reflecting the value and cash flow of a real estate portfolio by a token.

2024

Implementation of governance tool

(Voting System) Integration of the voting system included in YFlow

2025

Connect flow model and digital real estate / art asset

Lending / borrowing and defi combined with real estate / art assets.​ Combining the smart flow models with the real estate token to provide further value added like leding for real estates

2025

Integration of digital assets based on stock market

Creation of digital assets fully linked to commodities and stock market. 100% backed by the real world assets

2026

Decentralized passive trading

Integration of swap services enriched by the possibility of dezentralized limit orders

2027

decentralized passive trading with leverage

Based on the decentralized spot trading and enriched by the leverage possibility