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Platform Economics and Staking Rewards

Collection of Platform Fees#

Platform fees accrue from its users as a result of different events and transactions. When minting youves tracker tokens, 1.5625% of the price of the minted youves tracker token is deducted from the minter's wallet (in tracker tokens). Furthermore, the platform applies interest rates. There is a liability interest rate/lending fee on the outstanding balances of minters and there is an asset interest rate on the total youves tracker token balance of holders. The minters pay the liability interest rate, and the holders receive the asset interest rate. The liability interest rate is roughly 1.00% per annum higher than the asset interest rate. This difference is claimed by the platform on an ongoing basis.

The collected fees are used to calculate staking rewards based on when the fees are recognised by the platform. The minting fee is recognized at the act of minting. The amount of interest difference is recognized whenever the platform updates its interest rate calculation.

Cost for Gas and Storage Fees#

Costs incurred by the platform predominantly consist of blockchain related fees for gas and storage when deploying new smart contracts or when updating the smart contracts on calculation requests originating from the platform. These are deducted from the accrued platform fees when calculating the staking rewards.

Staking Rewards#

Minters may claim free governance tokens (YOU tokens) depending on the volume of their minting activity or they can buy them on the secondary market.

Besides voting on the further development of the platform, holders of YOU tokens have the possibility to stake their YOU tokens.

These stakers are eligible to receive staking rewards from the platform. However, if there are ever vaults with a collateral ratio under 100%, the stability mechanism will be activated. As a consequence the YOU tokens in the staking pool will be locked and the necessary proportion of YOU tokens will be used to recapitalise these vaults all the way up to the emergency level. In each second, the platform observes the recognised staking rewards vs. the number of staked YOU tokens, calculates the rewards per staked YOU token and does the allocation.

These allocated staking rewards remain available to holders without expiry date and can be claimed at any point in time in the future.

The governance model is further described in section Governance.