Whitepaper

version 1.0

Yearn Finance Bit

Contents
1. Introduction������������������� � � � � � 3 Protocol� � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� 12
7.2. YFBT Lending � � � � � � � � � � � � � � � � � � � � � �� 13
2. DeFi � ������������������������������ � � � � � � 4 7.3. Distribution OF YFB2 � � � � � � � � � � � �� 13
2.1. What is DeFi?������������������� � � � � � � 4 7.4. What Happened with Compound
What DeFi offer����������������� � � � � � 4  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 13
7.5. Yield Farming � � � � � � � � � � � � � � � � � � � � � � � 14
3. YFBT and YFB2� ��������������� � � � � � 5
3.1. Yearn Finance Bit������������� � � � � � � 5
3.2. Yearn Finance Bit2����������� � � � � � � 5 8. Vote � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� 1 5
9. Pre-sale� � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1 5
4. YFBT Ecosystem������������� � � � � � 6
5. Staking������������������������� � � � � � � 7 Token information
5.1. Staking YFB2 � ������������������ � � � � � � 7
10. YFBT Token info � � � � � � � � � � � � � � � � �� 1 7
5.2. Calculating the staking reward
11. YFB2 Token info � � � � � � � � � � � � � � � � � 1 8
for YFB2������������������������� � � � � � � 8
12. YFB2 Distribution � � � � � � � � � � � � � � �1 9
5.3. Value of Q ����������������������� � � � � � � 8
13. Roadmap � � � � � � � � � � � � � � � � � � � � � � � � � � � 2 0
5.4. Calculating the staking reward
14. Social Media� � � � � � � � � � � � � � � � � � � � � � � �2 1
for YFBT�������������������������� � � � � � 9
End

6. Yield Farming � ���������������� � � � � 1 0

6.1. What is Yield Farming?������� � � � � 10
6.2. Stake your LP tokens for rewards
� � ������������������������������������ � � � � 11

7. Lending�������������������������� � � � � 1 2
7.1 Deposit and farm your assets� � 12

7.1. Protocol to fork: Compound

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1. Introduction
We are moving towards a future in which each and every
person will be able to access the services of a “bank,”
regardless of what the political and/or economic climate
may be in the country or region in which they live.

This possibility is what has made blockchain technology and cryptocurrencies the
precursors of the next industrial revolution. This quickly evolving revolution has
been named decentralized finance, or DeFi, and its central player is the Ethereum
blockchain, used by the majority of DeFi applications. Dai, a decentralized stable-
coin (tethered to a currency) and backed by crypto assets minted in the Maker
ecosystem, is another of the cornerstones of DeFi.

Historically centralized financial systems have been and continue to be at the cen-
ter of most economies. All the functionalities of these systems are controlled by
centralized authorities that all act in concert together: governments, banks, and
miscellaneous financial institutions.

People deposit their money in banks and other financial institutions because they
want: 1) to save their money, and 2) to increase those savings by using the fixed and
recurring financial instruments available through conventional centralized finance.

One of the problems with this system of centralized finance is that when someone
deposits their money in a bank or other institution, they give away control over
these assets. They often have little to no knowledge of where their money is actu-
ally invested or how it is managed. This lack of transparency turns individuals into
nothing more than cogs in an institutionalized financial machine where choice is
limited or virtually non-existent.

These centralized institutions use their customers assets to increase their own
wealth by investing in different financial markets using a variety of instruments,
and by granting loans at high interest rates. We continue to see the large profits
regularly made by centralized financial institutions, but only a fraction of those
profits are ever returned to depositors.

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2. DeFi
2.1. What is decentralized finance (DEFI)?
DeFi is a new financial ecosystem: decentralized, global, transparent, resistant to cen-
sorship, without intermediaries and easily accessible. Each user has total control of their
assets. The goal of decentralized finance is to provide a global and transparent alternative
to centralized finance for all the financial services that people use. DeFi is bringing a revo-
lution to personal finance, and yet all that is needed is to become a part of this revolution
is an internet connection and a smartphone! The alternatives to traditional centralized fi-
nance that this new financial ecosystem offers include decentralized loans, decentralized
oracles, and non-custodial token exchanges. These financial instruments put the power
of choice back into the hands of the consumer.

Some of the tools that are used to carry out decentralized finance include: blockchains,
digital assets, decentralized applications (dApps), smart contracts (Smart Contracts),
protocols, and decentralized exchanges (DEX).

The Ethereum blockchain and ecosystem has led decentralized finance from the begin-
ning with Ethereum based projects like MakerDAO and Augur, among others. But little by
little there are other large platforms in the sector, for example EOS, Algorand, and Tezos,
that are also getting ready to claim their share of this rapidly expanding pie.

What does DEFI offer that differs from traditional finance?

2.2. Global access to financial services
Anyone can create DeFi applications (apps), and anyone can use them. DeFi applications
provide global access to financial services, the only limiting factor being the possibility
of local regulation. To access DeFi platforms such as Maker or Compound Finance, users
need only an internet connection and a smartphone, regardless of their location or coun-
try.

2.2.1. Complete control over assets

DeFi offers users complete control over their assets. Anyone can store, trade, or invest
their assets on the blockchain securely without the need for any middleman. This is pos-
sible because the role of the middleman has been taken over by smart contracts, written
by developers for DeFi applications. In this way users can exercise complete control over
their assets.

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2.2.3 Privacy, security, and transparency

With DeFi, users obtain control over their wealth, able to securely transact without the
need for validation from a central party. As all activities are recorded on the blockchain,
all transactions are publicly available and are forever immutable. Thus a transparency and
accountability exists in DeFi that eclipses centralized systems, where records can be eas-
ily modified.

3. YFBT and YFB2

3.1. Yearn Finance Bit
Yearn Finance Bit (YFBT) is a decentralized token under the ERC-20 (Ethereum) protocol.
When purchased it allows users to: earn a yield by staking it, borrow assets, and vote in the
decentralized YFBT ecosystem on governance issues within the community.

The YFBT staking platform enables investors to earn a yield on the YFBT token by depos-
iting the purchased token on the YFBT website in whatever amount one wishes to stake
(deposit.) An Annual Percentage Rate (APR) of 25% is earned on the token’s value, and
staked tokens can be unlocked at any time for a fee. In addition to the financial return
that is earned stakers are rewarded with the governance token YFB2, which allows voting
within the YFBT ecosystem.

Another service in the YFBT ecosystem is borrowing. Borrowers can borrow assets in an
overcollateralized (perpetual) way, selecting USDT (Tether), Ethereum (ETH), or DAI, and
earn YFB2 as a reward for using the protocol.

3.2. Yearn Finance Bit2 (YFB2): The governance token of YFBT

Yearn Finance Bit2 (YFB2) is the YFBT governance token designed to maximize earnings
within yfbit.finance. To maximize yields, staking (depositing) action is required.

YFBT Staking rewards: YFBT reward + YFB2 governance token reward.

YFB2 Staking rewards: YFB2 governance token reward.

YFBT has an APR of 25% on the same token, and in addition to this, you will be rewarded
with YFB2. The APR of YFB2 will be publicly voted on the platform, as well as the minimum
staking amounts for YFBT/YFB2.

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4. YFBT Ecosystem

It consists of keeping
funds in a crypto- staking
currency wallet, to
support the security
and operations of a
blockchain network.
Yield Farming,
In simple words, stak-
“Agriculture of Yield”, is
ing is the act of depos-
an activity carried out
iting cryptocurrencies
by users (investors,
in order to receive
farming traders) who have
rewards.
assets in cryptocur-
rencies to use these to
invest them and obtain
the highest possible
return on their
investment.
Decentralized loans,
which have much
higher returns than lending
those offered by
traditional market
funds, even reaching
18%, compared to
2-3% in the traditional
market.
The community will
actively
participate in the
vote project, through
voting, such as
updates, staking
payments, protocols
for farming, and other
points will be defined
by vote.

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 5. Staking
Staking consists of keeping tokens in a cryptocurrency wallet in order to 1) earn a reward
(25% APR,) and 2) support the security and operations of the blockchain network. Sim-
ply put, staking is the act of depositing cryptocurrencies in a cryptocurrency wallet and
keeping them there in order to receive rewards. A 1% fee is charged to stake, and tokens
can be unstaked at any time for an unstaking fee of 0.25%.

By purchasing and staking the YFBT token you earn both interest and the YFB2 gover-
nance token. The amount of YFB2 you receive for staking YFBT is 22.13% of the value of
YFBT staked. The APR of this YFB2 token will be publicly voted upon by token holders in
the platform at a later date, as will the minimum staking amounts required for YFBT/YFB2.

Staking
YFBT/YFB2
Minimal amount for staking: will be defined
with vote.
APR: 25% to 50% yearly.
Lock: user can unstake anytime.
Tokens: YFBT or YFB2
Staking fee: 1%
Unstake fee: 0.25%

5.1. Example
Say an investor stakes 2 YFB2 tokens in the platform, then the protocol would deduct 1%
from the initial 2 YFB2 tokens as the staking fee, thus leaving a balance of 1.98 YFB2. If
this token balance is staked for 6 months, the user will be rewarded with 0.2475 YFB2 on
their stake (12.5% for 6 months x 1.98 tokens = 0.2475). If the investor decides to unstake
(withdraw) after 6 months, the platform will then deduct a 0.25% unstaking fee from the
original 1.98 YFB2. This would provide a net return to the staker (after fees) of 2.24255
YFB2. Staking and unstake fee will be distributed to staking rewards allocation.

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5.2. Calculating the staking reward for YFB2

Formula:

Staking reward 1 (SR1) = (I2-S1)*(MR*Q)

100
I2= Initial staking balance of YFB2

S1: Stake fee = 1%

S2: Unstake fee = 0,25%

SR1 = Staking reward without unstake fee

SR2 = Final Staking reward

MR = Monthly reward = 25/12= 2.0833 %

Q = Staking duration, in months

W2 = Withdrawal of YFB2 after staking

Final Staking reward (SR2)

SR2 = SR1- [(I2-S1)*S2]
Reward payment for Staking YFB2
W2 = I2 + SR2 (Reward in YFB2)

Where the Value of Q is:

Value of Q is set every 30 days

If you stake 30 days, Q value will be 1

If you stake 15 days, Q value will be 0.5

If you stake 73 days, Q value will be 73/30 = 2,43

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5.3. Calculating the staking reward for YFBT

Formula:

Staking reward 3 (SR3) = (I-S1)*(MR*Q)

100
I= Initial staking balance

S1: Stake fee = 1%

S2: Unstake fee = 0,25%

SR1 = Staking reward without unstake fee

SR2 = Final Staking reward

MR = Monthly reward = 25/12= 2.0833 %

Q = Staking duration, in months

W1 = Withdrawal of YFBT after staking.

WF= Withdrawal of YFB2 after staking

Final Staking reward (SR4)

SR4 = SR3- [(I-S1)*S2]

Reward payments for Staking YFBT

W1 = I + SR4 (Reward in YFBT)
WF = SR2*0.2213 (Reward in YFB2)

Staking reward for YFBT: Staking YFBT you will receive a reward, APY of 25%
yearly (YFBT) and an additional staking reward of 22,13% in YFB2 , considering the token
amount of YFBT for YFB2 calculations. There will be a limited amount of YFBT/YFB2 that
can be placed on the staking function.

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6. Yield Farming
6.1. What is Yield Farming?
Yield Farming, or the “Agriculture of Yield”, is an activity carried out by users (investors,
traders) who have assets in cryptocurrencies to use these to invest them and obtain the
highest possible return on their investment.

Similar to traditional agriculture, it is carried out in cycles of productivity. The Yield Farm-
ers look for opportunities in the network to commit their assets in cryptocurrencies to
make loans to other users, or to request loans from other users who make a living in the
cryptocurrency trade, on the platforms that these offer possibilities. This activity caus-
es more liquidity to occur, and the more liquidity there is in the platform, the greater the
number of amounts that can be borrowed.

All of this allows Yield Farmers to earn a profit, in the form of interest earned on the amount
of cryptocurrency deposited on the platform. And also, in DeFi farmers can receive im-
plicit governance tokens to the platform they are farming. This is part of the earnings
received from the high-interest rate proposed by the loan protocol of the platform itself.

Yield farming is closely related to a model called automated market maker (AMM). It typi-
cally involves liquidity providers (LPs) and liquidity pools. Let’s see how it works.

Liquidity providers deposit funds into a liquidity pool. This pool powers a marketplace
where users can lend, borrow, or exchange tokens. The usage of these platforms incurs
fees, which are then paid out to liquidity providers according to their share of the liquidity
pool. This is the foundation of how an AMM works.

However, the implementations can be vastly different – not to mention that this is a new
technology. It’s beyond doubt that we’re going to see new approaches that improve upon
the current implementations.

On top of fees, another incentive to add funds to a liquidity pool could be the distribution
of a new token. For example, there may not be a way to buy a token on the open market in
any substantial numbers, only small amounts. But liquidity providers can gain access to
and accumulate these tokens by providing liquidity to a specific pool.

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The funds deposited in liquidity pools are commonly stablecoins pegged to the USD –
though this isn’t a general requirement. Some of the most common stablecoins used in
DeFi are DAI, USDT, USDC, BUSD, and others. Some protocols will mint tokens that rep-
resent the deposited coins in the system. For example, if DAI is deposited into the Com-
pound platform, the farmer gets cDAI, or Compound DAI. If the deposit is ETH into Com-
pound, the farmer gets cETH.

As you can imagine, there can be many layers of complexity to this. You could deposit
your cDAI to another protocol that mints a third token to represent your cDAI that rep-
resents your DAI. And so on, and so on. These chains can become really complex and hard
to follow.

Stake your LP tokens for rewards:

WETH Farm WETH Farm UNISWAP Farm

Farming Farming Farming
WETH/YFBT WETH/YFB2 UNI_LP/YFBT
APY: -- APY: -- APY: --

UNISWAP Farm USDT Farm USDT Farm

Farming Farming Farming
UNI_LP/YFB2 USDT/YFBT USDT/YFB2
APY: -- APY: -- APY: --

DAI Farm DAI Farm WBTC Farm

Farming Farming Farming
DAI/YFBT DAI/YFB2 WBTC/YFB2
APY: -- APY: -- APY: --

APY of each farm will be defined

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Deposit and farm your assets:

- USDT

- WETH

- WBTC

- USDC

- DAI

- ETH-WBTC

- ETH-USDT

- ETH-DAI

7. Lending
7.1. Protocol to fork: Compound Protocol
YFBT will fork Compound, and it will be rewarded with YFB2 token. Compound its an Ethe-
reum platform that specializes in making loans in some cryptocurrencies: Ether (ETH),
Dai (DAI), Basic Attention Token (BAT) and Tether (USDT). Its operation is supported by
an application developed on the Ethereum blockchain. Through its protocol, users of this
platform can make deposits and request collateralized loans with a ratio of 1.5x. That is,
you must have at least 1.5 USD in deposit for every dollar requested as a loan.

The operation of Compound is based on the implementation of Smart Contracts (Smart

Contracts) of Ethereum. However, the company Compound Labs, Inc is in charge of man-
aging the financial resources accumulated on this platform, which takes away its decen-
tralized nature. However, its executives have recently stated that they are working to
make Compound a fully decentralized platform.

Through YFBT-Compound the user can request loans, without the mediation of third par-
ties. For this, you can use any of the cryptocurrencies managed by the platform. But in
addition, you can make loans to other users of the platform. The latter makes you a cred-
itor of a profit generated by the interest on this borrowed money. And at the same time, it
injects liquidity into the platform.

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7.2 YFBT Lending
Supply Markets: Basic Attention Token, Dai, Ether, USD Coin, Tether

Borrow Markets: Basic Attention Token, Dai, Ether, USD Coin, Tether.

7.3 Distribution of YFB2: Each day, approximately 2 YFB2 will be distributed to all users
of the protocol, the distribution is allocated to each market (ETH, USDC, DAI, etc), propor-
tional to the interest being accrued in the market. With each market, 50% of the distribu-
tion is earned by suppliers, and 50% by borrowers.

Each time you interact with a YFBT-Compound market, supplying, borrowing, withdraw,
or repaying the asset, YFB2 will be transferred into your wallet, if you have a balance of at
least 0.001 YFB2; you can withdrawal at any time.

7.4 What Happened with Compound

Yield farming drove a flood of capital into Compound — in a single week in mid-June nearly
half a billion dollars was added to Compound, driving total value locked (TVL) from $100M
to over $1.7 B at the peak. $COMP similarly opened trading around $80 and exploded to
over $300.

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On the platform, you can perform multiple operations, multiplying your yield.

It goes like this:

1) Add 100 USDC as collateral to the platfrom

2) Borrow 70 DAI against your 100 USDC collateral

3) Trade 70 DAI for 70 USDC

4) Repeat Step 1

This process is also known as Yield Farming when you maximize your profits without any
additional deposits.

7.5 Yield Farming

Gaining Leverage

YIELD FARMING

SWAP TO 70
USDC

BORROW
100 USDC
70 DAI
Send to APP

collateral

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8. Vote
8.1. Voting

All members of YFBT/YFB2 who hold at least 1 YFBT/YFB2 are eligible to vote in the com-
munity through our platform.

- Any change that the community wants to integrate bust be approved by vote

- Any update that the community wants to integrate bust be approved by vote.

9. Pre-sale
9.1. YFBT PRE-SALE

1° stage. 1 YFBT = 40$ . SOLD OUT.

2° stage. 1 YFBT = 60$ . SOLD OUT.

3° stage. 1 YFBT = 70$ . SOLD OUT.

9.2. YFB2 PRE-SALE

1° stage. 1 YFB2 = 50$ . SOLD OUT.

2° stage. 1 YFB2 = 60$ . SOLD OUT.

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Token info
YFBT
YFB2

1. 16
10. YFBT Token info
Yearn Finance Bit Token information

Yearn Finance Bit

Ticker: YFBT
Official Token address:
https://etherscan.io/token/0xf0a0f3a6fa6bed75345171a5ea18abcadf6453ba

• Total Supply: 4.500 YFBT

• Max Supply: 4.500 YFBT

• Pre-sale allocation: 3.000 YFBT

• Opening Uniswap: 300 YFBT

• Circulating Supply: 3.300 YFBT

• Staking-Farming allocation: 1.000 YFBT

• Tokens burned: 2.500 YFBT

• There will be no more issue of tokens

Listed on:

- Hotbit: https://www.hotbit.io/exchange?symbol=YFBT_USDT

- CoinTiger: https://www.cointiger.com/en-us/#/trade_pro?coin=yfbt_usdt

- Probit: https://www.probit.com/app/exchange/YFBT-USDT

- Uniswap: https://app.uniswap.org/#/
swap?outputCurrency=0xf0A0F3A6FA6bED75345171a5EA18AbcadF6453BA

- CoinMarketCap: https://coinmarketcap.com/currencies/yearn-finance-bit/

- CoinGecko: https://www.coingecko.com/en/coins/yearn-finance-bit

1. 17
11. YFB2 Token info
Yearn Finance Bit2 Token information

Yearn Finance Bit2

Ticker: YFB2
Official Token address:
https://etherscan.io/token/0x59e7b5db9be0bdd26fa048d39e01fee456ab674e

• Total Supply: 5.650 YFB2

• Max Supply: 5.650 YFB2

• Pre-sale allocation: 2.000 YFB2

• Opening Uniswap: 300 YFB2

• Circulating Supply: 3.650 YFB2

• Staking, lending, supplying allocation: 1.850 YFB2

• There will be no more issue of tokens

Listed on:

- Hotbit: https://www.hotbit.io/exchange?symbol=YFB2_USDT

- Probit:

- Uniswap: https://app.uniswap.org/#/
swap?outputCurrency=0x59e7b5db9be0bdd26fa048d39e01fee456ab674e

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12. YFB2 Distribution
Distribution of YFB2 for YFBT holders

BUY YFBT TO WIN YFB2!

Hold YFBT to win YFB2 at external wallets like Metamask, TrustWallet, Atomic,
Coinomi, or any other erc-20 wallet (not exchange wallet).

Rate 1 YFBT = 0.5 YFB2

Distribution date: from 25/SEP/2020 - 22:00 UTC to 7/OCT/2020 - 22:00 UTC

Snapshot: Etherscan “Holders”. YFB2 not distributed: for lending protocol.

Amount distributed per day: randomly.

Those who bought YFBT in presale and moved more than 10 YFBT to exchanges
will be receiving YFB2 tokens in 8 months.

Min. amount to hold to qualify for distribution: 0.2 YFBT.

Don’t move your YFBT during distribution from Metamask or TrustWallet to get
YFB2.

You can deposit but not transfer.

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13. Roadmap
2020/Q2 ++ 2
 020/Q2: Yearn Finance Bit YFBT Planning &
Development
++ 2020/Q3: YFBT Pre-sale
++ YFB2 Pre-sale
++ 1° Marketing campaign for Yearn Finance Bit

2020/Q3 ++ 2020/Q3:
++ Exchange Listings at:
++ DigiFinex
++ ProBit
++ CoinTiger
++ HotBit
++ Top CMC Exchange
++ Uniswap
++ Coinmarketcap for YFBT and YFB2
++ CoinGecko for YFBT and YFB2
++ CoinPaprika for YFBT and YFB2
++ CoinCodex for YFBT and YFB2
++ Ranking websites for YFBT and YFB2

2020/Q4 ++  020/Q4: Yearn Finance Bit launch platform v 1.0

2
++ Staking of YFBT/YFB2, 3° Week of October
++ Farming platform, 2° Week of November
++ Expansion to Europe, Asia, and South America
++ Listing on top 10 CMC Exchange
++ 2° Marketing campaign for Yearn Finance Bit

2021/Q1 ++ 2021/Q1:
++ Fork of Compound, January 2021

2021/Q2 ++ 2021/Q2: 3° Marketing campaign for Yearn Finance Bit

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14. Social media
Follow us on our official social media

WEBSITE: https://yfbit.finance/

TWITTER: https://twitter.com/yf_bit

TELEGRAM: https://t.me/yfbit

CONTACT: [email protected]

1. 21
Yearn Finance Bit

whitepaper version 1.0

yfbit.finance