Anyone who is the least bit familiar with decentralised finance and the opportunities provided to enthusiasts by crypto projects has likely heard of massive staking APY rates marketed online.
In the cryptosphere, the saying “If it’s too good to be true, it probably is” has come a long way since the initial release of Bitcoin, both in positive and negative ways.
There have been absolute disasters in the space that damaged both the reputation of crypto and the participants’ digital wallets – think Bitconnect, but at the same time, there have been legitimate projects providing massive value to the user and advancing the DeFi space further by simply innovating existing protocols and distribution mechanics.
With this in mind, whenever a new project promises sky-high returns, impact, and immersive experiences appears, people should be highly sceptical before and while doing their research.
The rise of decentralised finance has enabled mechanisms never imagined or attempted in traditional markets, and therefore they have existing parties using them for value creation purposes as well as for user manipulation through buzzwords and false promises.
How Should We Judge Projects With Big Promises?
Where does one find the right information to decide whether they should trust these new systems and should we be bothered about high-return promises in the first place?
For starters, the average user can hardly be completely sure about someone’s legitimacy without investing a lot of time into legal, economic, and ethics due diligence – that does not sound efficient. To shorten the process, we have thought of a simpler process to handle new attractive yet uncertain information in the cryptosphere:
- Research the team. One must note that many projects today have anonymous teams, and in many cases, that is a bad sign. Otherwise, a quick look at the core team’s Linkedin profiles should give an idea of who you’re dealing with.
- Read their White Paper. Sure, a flood of technical terms can both be overwhelming and intimidating deterring one from digging deeper. However, even for the average user this can be a glimpse into the inner workings of a given ecosystem, and that’s important. White paper > Marketing copy.
- See if they’re compliant with appropriate rules and regulations – can be found on website policies, usually on the footer. This is a no-brainer when thinking of larger and riskier investments.
- If accessible, check who else the project is working with. Partnerships can be great for a project, but sometimes there can be shady activities taking place behind the scenes, with shady partners.
The points above should give a brief yet effective overview of most projects in the cryptosphere today, and provide either more suspicion or trust. From here, it would be worth taking into account existing projects that have promised massive APYs and rewards to the community, and see how they have succeeded or failed.
A Deep Dive Into Existing High-Yield Protocols
To start comparatively lower, in a space where APYs can get to incredible heights, let’s consider a DeFi 2.0 protocol Titano, which offers automatic staking through fast rebase rewards that get paid out to customers cyclically. Titano works to offer a 102,483% APY because of its proper token distribution to Risk-Free Value (RFV) modelled system and its consistent PancakeSwap pair liquidity provision that ensures coverage.
Another famous DeFi yield provider that showcases a 382,945% APY is called Safuu, which is also a sustainable autostaking compound interest-based ecosystem protecting its users through the Safuu Insurance Fund and a platform section for burning tokens. High-APY-focus projects that are legitimate have a series of traits and features that allow them to operate in such risky environments.
One of these features is the insurance fund – a place where quite a large portion of all transaction fees go. Another is the burn pit, where tokens get burned to manage supply and demand, and also, there is the automatic staking function paying a platform’s users out in set cycles.
One of the soonest to launch six-figure APY projects is KyotoProtocol.io which offers an eye-watering 916,474% APY for the first 12 months. Like the aforementioned projects, KyotoProtocol.io works because of its auto-staking mechanism that in this project’s case, pays out staking rewards to users every 15 minutes, or 96 times per day – the rewards get compounded, hence the incredible APY.
More Cylinders Under The Hood Of KyotoProtocol.io
However, KyotoProtocol.io is not just about high flashy APYs, it is about saving the planet whilst receiving additional income on the side. The project is building a multi-layer carbon credit protocol which is to be released through a fair launch in the next few weeks.
The team must have realised how carbon credits have been misused throughout the years and had little proven efficiency at scale. Therefore, KyotoProtocol.io aims to decentralise carbon credits by implementing their core functions on the blockchain, making the planet-saving permits accessible to everyone in the cryptosphere.
KyotoProtocol.io will be conducting launching through a fair launch mechanism, which will see 49% of the Kyoto Token supply to the participants, with the unsold portion of the token burned to manage supply.
In addition, to increase the sustainability of the protocol, the project will distribute fees from users’ purchases and sales of the $KYOTO token to its robust set of protective mechanisms. The Kyoto Foundation will build and manage DeFi apps like a carbon credit marketplace and integrate them into one multi-layered bridge.
The Kyoto Insurance Fund will keep a portion of the collected transaction fees to mitigate downside risk and prevent bank runs.
The Kyoto Burn Pit will be the place for the destruction of tokens where ecosystem sustainability is grown and protected, and The Kyoto Token Liquidity Generator will be the part of the protocol where 5% of the fees go to constantly provide liquidity. In terms of the total fees to be paid by users, 15% shall come from purchases and 20% from sales.
In short, KyotoProtocol.io is one of the first projects to bring certified carbon credits on-chain and using a set of decentralisation-focused tools, enable anyone to earn simply by buying and holding, and to help revive the planet along the way.
The new protocol has recently partnered with influential projects like NEAR Protocol and CUDOS – two parties that can help both the rewards and the planet revival happen.
It will be quite interesting to see where such high promises as a 916,474% APY coming from a sustainability-focused project can bring to the world of crypto.