YIP-07: Dual-currency Product Launch on BNB chain

Motivation After our CHI strategy launch, the crypto market has been experiencing turbulence over the past months. With high volatility and extreme short term trends, it is not favorable to generate sustainable yield by being a liquidity provider for DEX (e.g., Uniswap V3). Asset holders on DeFi are in need of a structured financial product to park their assets and earn a stable yield. It will provide a fixed income stream for the asset holders before assets are being sold to stablecoins or being used to buy another token asset. In light of the growth and resilience observed in the BNB chain, we see it as a mature environment for the next product launch with YIN Finance. Proposed launch date will be on 30th of May 2022.

Proposed Dual-currency Product Dual-currency product is constituted by a combination of asset derivatives and other cash generating tools (e.g., staking). Shadow Labs will formulate the strategy. The team and the algorithmic system maintain a close watch on the market on various aspects 24/7, including but not limited to market volatility. Yield generated is then distributed to dual-currency product subscribers.

The dual-currency product will cover BNB, BTC and ETH. For stablecoin, primarily BUSD will be the key focus for now. Each asset type will have two products, namely “Smart Seller” and “Dip Chaser”. Upon expiration, the settlement currency will depend on the comparison between strike price and spot price. For now, all product life-cycles are 7-days, with a potential feature of auto-renewal.

It will have a limited subscription period and expiry date with no withdrawal allowed before expiration date upon successful subscription. Strike price remains unchanged throughout the product life-cycle. New subscriptions might not be accepted when the price gap between spot price and strike price becomes too small. Prior to subscription, the estimated annualized yield will fluctuate, but it will be fixed and unchanged after successful subscription.

About Shadow Labs Shadow Labs is a premium research institution responsible for the research and development of active liquidity strategies for DEXs with AMM mechanism including but not limited to Uniswap V3. This allows DeFi users to navigate an ever-changing environment while ensuring that liquidity providers obtain maximum yield from their liquidity. With the boost from Shadow Labs, liquidity providers are able to automatically reinvest their liquidity, instead of just having their liquidity passively lying around. Members of the Shadow Labs team have a vast wealth of experience in the blockchain industry. This includes two of the Co-Founders of the Hashingbot, who cumulatively have more than 10 years of combined experience in traditional trading and investment industries as well as having managed upwards of $200 million in assets during that time. The other two members of the team have previously worked as a System Engineer at Merrill Lynch, and as a Quant Trader at Deutsche Bank. Please visit our homepage ShadowLabs for more information and reach out to us at contact@shadowlabs.tech.