Proposal: Switching YAPE payout for DAI (Stable Coin) for the veYAPE investors

Why was it decided to do a buyback and then redistribute in YAPE. What if we switched to DAI?
I believe if we used DAI it would give the investor a few options:
Option 1: convert the DAI into cYAPE which represents, true, long-term belief in Yapeswap. (HIGHEST YAPE APY)
Option 2: Convert back in YAPE to either swap for more veYAPE or maybe throw into the YAPE/ETH pool. Both creating buy back pressure.
Option 3: swap DAI for other tokens on the protocol creating more fees for LP’s.

We could also implement an additional burn, where a certain percentage of the buy back goes to burning YAPE tokens.

The veYAPE which once was YAPE is being burned slowly over the lock period of the investors choosing.


Industry standard is to distribute dividends using the protocol token. The idea is to provide utility to the protocol token and to make it convenient to then lock for governance. If YAPE is truly desirable then we should provide opportunities for long-term believers to acquire YAPE.

You’re saying since the Yapeswap DAO has high YAPE incentives in cYAPE (long-term believer) pool then the most convenient route is to acquire DAI, swap for cYAPE, and burn. Maybe we provide options for veYAPE holders either they get DAI or YAPE or a mix of both?

And what percent would you recommend burn rate be?

We have to separate ourselves. If we provide DAI or at least a choice then it puts pressure on the Yape community to keep building a solid project. Not to say if we redistributed the buy back Yape it wouldn’t. But I believe the long term effects of dishing out Yape for the pools, cYape and veYape will devalue the Yape token.
Provide the Dai and make the LP, investor buy back or given them the option. They can swap the dai from the pools for other tokens or Yape

I think we’re on the right track to working towards more buy-pressure for the protocol, which I think long-term is critical to adding value to Yape.

That said, wouldn’t a buy-back of Yape that is distributed as DAI first have to be converted from Yape to DAI? If so, then it’s counter-productive to do this.

Burn rates IMO should incremental, but I’m not an economist either lol, ill have to brainstorm this further to give any solid input on this…but I think it’s another aspect that should coincide with the emission schedule that will create deflationary value to Yape long-term.

I think it’s fine to have a token burn implemented - this actually makes a difference. But distributing rewards as DAI will make virtually no difference. If the users want dai, they will sell the yape they get for dai (and thus, the yapeswap protocol will get 2 transaction fees: 1 for the yape buyback, one for the yape sell). If the users want yape, they will keep it.

On the contrary, if we just distribute as dai in the first place, only the users that want yape will generate transaction fees for yapeswap. Other swaps will likely still take place on other platforms, unless it is cheaper on yapeswap (which is unlikely with the amount of liquidity we have). So your option 3 is actually false.

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My issue is the printing of YAPE and the price. Won’t the selling of the YAPE create sell pressure?

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The yape is first bought back. If it is 100% sold after, the buy pressure (from the buyback) and sell pressure (from the selloff) fully negate each other (except there are transactions that can only be done on yapeswap that occur in this case, so yapeswap ends up slightly ahead due to the swap fees).

It would be the same as if yape was not bought back and instead dai was distributed and 0 of it was used to purchase yape. Except in that case, we wouldn’t have the transaction fees from the swaps in and out of yape. It’s a subtle difference

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ok then if thats how it works currently, then my suggestion would need to be updated to a burn / dai (stable coin) payout. Similar to how dividends work in the stock market.
For those unfamiliar I’m going to use the stock/company Wellsfargo.

If I own 1 share of Wellsfargo stock, depending on the revenue for the quarter they will pay me a certain amount for every share of stock I own. Then if I want to, I can buy Wellsfargo stock with that money or any other stock, or deposit it into my bank account to use in my current everyday life.
Some investors seek out companies that pay dividends and set it up to always just buy the stock every quarter when the dividend is paid out.

I think something similar would benefit Yapeswap long term. If we had a dividend program, paid out as DAI (or just a stable coin) and then had a certain % of the dividend money to buy back YAPE and burn it or buy it back (throw it into a reserve fund for business purposes), I believe all this would benefit Yapes and Kongs involved.

I’ve wanted to know, are we burning YAPE currently by investing into veYAPE and the veYAPE depreciates over the time period locked or what happens to it…

I’m going to be frank here. I just spelled out why it makes less sense to pay as stablecoin vs as yape itself, and you still stick with your initial thought.

I will use all governance power at my disposal to vote against this if it ever goes to vote.

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You get your YAPE back when the lock up time expires.

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