YieldFlare is the secondary governance token of the Flare Finance ecosystem with its foremost use case focused on the FlareX platform. The max supply of the YFLR token will be 110M with no built-in functionality for further minting. Initial distribution of YFLR will result in 40M YFLR available to Spark (FLR) holders one month after the launch of Flare Network as an Initial DAO Offering, 40M YFLR to the reserve pool in the APY Cloud, 20M YFLR to the Flare Finance Foundation, and 10M YFLR to the team and investors. The YFLR token will be able to participate in a number of governance voting opportunities and applications on Flare Finance. The whitepaper lists possible use cases as the following, which the token is not limited to: exchange and wrapping fees on FlareX and FlareWrap, token listing and pairing voting on FlareX, staking on FlareFarm, liquidity pool participation on FlareX, launchpad participation, collateral on FlareLoans, and as coverage through FlareMutual.
YieldFin is the primary governance and reward token of Flare Finance with a max supply of only 11k tokens. YFIN is used across the entire product suite on Flare Finance and holds a distinct advantage in governance as each YFIN equates to 10k votes versus each YFLR being worth one governance vote. Unlike YFLR, YFIN is not used as a substitute fee token on FlareX or FlareWrap. The YFIN token will be distributed mainly through the utilization of the FlareFarm product via a mechanism design called a fair token distribution, but will also have a smaller percentage amount delivered through early adopters of the FlareLoans and FlareMutual platforms. The distribution of YFIN will be allocated with 8k YFIN going to the FlareFarm to be earned by participants in the FlareX and FlareFarm platforms, 1k YFIN to each the FlareLoans and FlareMutual platforms as a booster for adoption on each application, and 1k YFIN to a reserve pool by the Flare Finance Foundation.
***this table represents the distributions of YFIN through the Flare Farm application
Through the FlareFarm application, YFIN will be fairly distributed over the course of two years with 50% of the total YFIN allocation being distributed in the first six months for each given pool. Every six months a halving of the total allocation to each pool will occur resulting in the daily rewards disbursed through the FlareFarm having its highest rate in the earliest days of the Flare Finance ecosystem. Additionally, borrowers and lenders on the FlareLoans platform will receive the application’s allocated YFIN on the same release schedule as the FlareFarm distributions. Finally, covered entities and coverage providers on the FlareMutual platform will receive the application’s allocated YFIN in the same way mentioned above. Users either purchasing or earning YFIN will be able to used it in every application on Flare Finance.
The Initial DAO Offering (IDO) of the YFLR token will be conducted via a valueless proxy token by the name of DAOFlare. DFLR will total 40M tokens and be distributed to holders of the FLR token, which is native to Flare Network. The formula behind the distribution will equate to:
(40M DFLR / circulating FLR supply) * user FLR supply
The snapshot for the Flare Finance IDO will take place one month after Flare Network launch. It is also important to note that the snapshot will only be taking into account FLR accrued in the first 30 days of the Flare Network and will not include any future airdrops a user may be receiving. After the snapshot takes place, FLR holders will receive their valueless DFLR token, which can then be swapped 1:1 for YFLR on the FlareX platform. To complete this process, users will have to set up a Civic verification for their wallet address and complete the platform’s terms of service and tutorials.
Updates: With the announcement of Flare launching a “Canary Network” in the Songbird Network, 1M YFLR will be redistributed to incentivize participants in this new experimental ecosystem coming out of the 20M YFLR allocated to the Flare Foundation Reserve Pool. This brings the size of the IDO for the YFLR token to 41M YFLR that will be up for grabs to FLR and SGB token holders alike. The airdrop of DFLR for FLR holders will still be 40M; however, participants in the Experimental Finance (ExFi) protocol launching on Songbird Network will be able to earn from a 1M Songbird DFLR pool. Songbird DFLR can be swapped via Flare Finance’s one-click swap portal for DFLR on the Flare Network upon launch of the mainnet. YFLR will then be able to be claimed one month after the Flare Network launch by swapping any DFLR for YFLR via the FlareX protocol. Of the 1M Songbird DFLR rewards, 650K will be allocated to Songbird FlareFarm and 350k to Songbird FlareLoans with an expected distribution period of 63 days.