EOS Yield+ Blue Paper

Author

EOS Network Foundation

Date

May 27, 2022

Overview

Yield+ is an EOS working group and community initiative that was started to help develop the EOS DeFi ecosystem, grow the amount of total value locked in EOS DeFi, and increase opportunities for users to earn yield off of their EOS assets.

DeFi, or decentralized finance, has quickly proven itself to be one of the killer apps of blockchains and smart contract platforms. DeFi competes with legacy finance by offering users more control, ownership, and earning potential.

Today, a number of smart contract platforms have robust DeFi ecosystems that compete for users across the crypto space. The Yield+ Working Group was formed to make EOS a more competitive and attractive platform for DeFi applications, builders, and users.

Our goal is to create a system of economic incentives that brings more liquidity and opportunity for on-chain yield to the EOS Network. To do this, we have designed a Liquidity Rewards Program for EOS that we have outlined and analyzed in this paper.

Abstract

DeFi is currently fractured across many different blockchains. Chains like Ethereum and Solana lead the way, while others like BSV, Avalanche, and Fantom are growing rapidly. Unfortunately, EOS is not currently participating meaningfully in this market – it lags behind other comparable chains in terms of overall DeFi activity.

Other chains, notably Fantom, have introduced Liquidity Rewards Programs that have greatly increased the amount of developer and user activity within their DeFi offerings. These programs create frameworks for measuring the total amount of DeFi activity across various decentralized applications (dApps) and services and then provide token rewards to those that generate the most activity.

This paper presents an overview of comparable programs on other chains and proposes a custom Liquidity Rewards Program for the EOS Network. Our goal is to adapt and improve upon existing programs to benefit the EOS DeFi ecosystem as a whole, bring more activity on-chain, and increase earning opportunities for users.

Team

The Yield+ working group consists of a number of individuals from various companies and teams throughout the EOS ecosystem including: EOS Nation, Greymass, 0rigin, DefiBox, Joe Louis, Pizza DeFi, and EOS Asia held advisory roles and contributed significantly to the research, writing, and work that went into this paper.

Summary

We strongly believe that DeFi is one of the most powerful existing use cases for smart contract platforms, and that driving this activity onto the EOS Network should be a priority for the community.

In this paper, we will attempt to show with objective data the success of similar programs on other blockchains. Then, we propose a design for a custom Liquidity Rewards Program for the EOS Network, as well as a plan to build and maintain that program.

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EOS Network

The EOS Network is a 3rd generation blockchain platform powered by the EOS VM, a low-latency, highly performant, and extensible WebAssembly engine for deterministic execution of near feeless transactions; purpose-built for enabling optimal web3 user and developer experiences. EOS is the flagship blockchain and financial center of the Antelope protocol, serving as the driving force behind multi-chain collaboration and public goods funding for tools and infrastructure through the EOS Network Foundation (ENF).

EOS Network Foundation

The EOS Network Foundation (ENF) is a not-for-profit organization that coordinates financial and non-financial support to encourage the growth and development of the EOS Network. The ENF is the hub of the EOS Network, harnessing the power of decentralization as a force for positive global change to chart a coordinated future for EOS.