It seems that all anyone can talk about in the crypto industry currently are AI coins and Trump coins. Almost everything else has been brushed aside.
However, crypto as an industry is unique. If your product does not fit the popular narrative, it is very hard to stay afloat and keep things running. But if you have a strong community, you can weather almost any storm.
There is no community that is more autistic, resilient, and die-hard than the Berachain community. Despite having to wait so long for the mainnet, they have not lost any patience and continue to believe in a Bera future.
Something else that is really admirable about Berachain is that slightly old-school degen vibe that most of the projects have to them.
After spending a whole year trading unfunny and uninspiring memes, it feels good to look at projects that have some interesting 2021-style DeFi ponzinomics to them. Even though it may be unsustainable, they are interesting financial experiments that can eventually lead to something bigger.
Amongst all the projects on Berachain, there is one ponzi, or should I say bonzi, that really takes the cake. That’s none other than Yeet.
YEET! YEET! YEET!
What is Yeet?
Yeet is the self-proclaimed “Bremier Bonzi of Berachain.”
It’s a financial game with no real dominant game theoretic strategy to win. The premise of the game is simple.
There is a pool into which players can yeet BERA tokens. The last person to yeet BERA into the pool will win 80% of whatever is in that pool. The remaining 20% is split amongst 10 random players, so everybody still has some incentive to play.
Players can yeet as much as they want into the pool as long as it is greater than 0.5% of the current pool value. This ensures that the game actually ends and that there is a winner declared.
Note that every Yeet is taxed. 15% of the Yeet is taken as tax and distributed as follows:
- 5%: Yeet treasury
- 1%: BERA8 — retroactive ecosystem and public goods funding by The Honey Jar
- 9%: YEET stakers via the liquidity trifecta vault. The 9% is deposited into a yield vault, which mints new vault tokens. These tokens are awarded to YEET stakers and can be withdrawn at any time.
Before we go any further, let’s quickly delve into the liquidity trifecta vault.
Typically, it is a vault that adheres to the ERC-4626 standard to create an automated farming system for the YEET/BERA pair.
You see, after some collaborations, those who provide liquidity to the YEET/BERA pair will be eligible for rewards in the form of oBERO through Beradrome, KDK plus xKDK from Kodiak. Swap fees from the pool, as well as BGT from the Beradrome validator.
However, to get these rewards, the user must first provide liquidity on Kodiak and then stake the LP token on Beradrome, after which they have to keep harvesting their rewards. This process is tedious and time-consuming, so the liquidity trifecta vault automates it.
The yield generated from the 9% allocated to this vault is redistributed on a pro-rata basis (proportionally) to YEET stakers.
Just before we move on, there are a couple more important things to note before you participate in the Yeet games.
The current game only ends if one hour passes with no new Yeets made into the pool. Every time a new Yeet is made, the timer resets, and the yeeter will have to wait for one hour. Then, once a game concludes, anybody can permissionlessly call a function to start a new game.
Now, you might be reading all this and thinking that it seems highly unlikely that you get anything out of this. Well, don’t worry. There are rewards for everyone.
There is a pre-determined amount of YEET tokens that will be emitted every day. One of the ways the token is distributed is by users yeeting their BERA into the game and getting YEET as a reward just for participating.
Of course, the amount of YEET you receive will be proportional to your volume, but there is a way to get boosted rewards and that’s through the Yeetard NFTs.
Yeetard NFTs
Look at the cute little Bera.
Yes, it’s cute, but it also gives you boosted YEET rewards when you participate in the game.
On top of this, you get a bunch of exclusive rewards within the Bera ecosystem. This could be an airdrop from a partner protocol, a whitelist, or even a special incentive mechanism. There’s a plethora of different options for Yeetard holders.
The total supply of Yeetards is 5555, but true to their name, the Yeetard community often does yeetarded things like burning them or getting tattoos of them. True degens in all their glory. You’d really love to see it.
You can find the full collection here.
YeetBonds
The Yeet game is just one aspect of the protocol. The YeetBonds takes this thing to a whole new level.
The Yeetards aren’t as yeetarded as you think anon; they’re actually quite smart.
The YeetBonds are simple. They allow any Berachain protocol to issue tokens to prospective buyers, accepting any ERC-20 token in exchange for payment. It’s sort of like a permissionless OTC sale.
YeetBonds work similarly to the bonding system that most DeFi degens might already be used to (think Olympus DAO 2021). When purchasing tokens through a bond, they are locked for a short period as users can buy them at a discount.
With YeetBonds, there are two options: a fixed discount or a Dutch-auction style discount, where the price keeps decreasing until buyers intervene.
YeetBonds will play an important role within the Berachain ecosystem:
- Protocols
Other Berachain protocols can greatly benefit from YeetBonds, as they are a way for them to raise cash without having too much market impact. The cash can then be used to grow the protocol.
Protocols can also use these bonds to acquire strategic assets, which will allow them to diversify their treasury and broaden their profit-generating horizons.
Another benefit, and arguably the most important one, is that it is a great way for a protocol to own its own liquidity. For example, they can allow LPs to give in their TOKEN/BERA LPs in exchange for a discounted rate, and this way, the protocol owns their liquidity.
- Founders and whales
Say you’re either a protocol founder or have a massive stake in the protocol's token, making you a whale.
You want to exit your position, but you know everybody has your wallets and will bring out the pitchforks once you sell. Secondly, you selling will have a massive market impact, which may decimate the coin and ultimately result in poor execution on your part.
The alternative is to create a bond to sell your stake. It’s basically a permissionless OTC deal with several different buyers. This way, the market impact is reduced, and you get your exit.
I think that’s what they refer to as a win-win.
- Buyers
Say you're a humble pleb like myself, trying to make it in the crypto dark forest.
It is very hard to find an edge, but you put in the work and know this protocol is going to absolutely turbo-send in a couple of months. Lucky enough for you, they have a bond available.
Now, you can purchase the tokens you want at a discounted rate. After the short lock-up period, you can now sell the tokens and cash in your profit and finally book that trip to the Soneva Fushi villas in The Maldives.
YEET token
Finally, the piece of the puzzle that ties everything together — the YEET token.
You can proclaim YEET in three ways:
- Buy it
- Earn it through the Yeet game
- Accept YEET bribes
Its main utility comes from staking. By staking YEET, you earn a portion of the revenue share from the protocol, which is essentially free money since you earn the YEET from participating in the Yeet game.
Users can unstake at any time; however, there is a 10-day unstaking period. If the user chooses to wait for the entire 10 days, then they get their entire position with no extra fee. However, if they want to unstake earlier, a variable fee will be placed when the ‘RageQuit’ function is used.
Beyond this, stay tuned to their socials, as they will have many incentive programs and flywheel setups with their different partners, which can present interesting profit-making opportunities.
The total supply is 1,000,000,000.
It is distributed as follows:
This is what the emission schedule looks like:
As far as yeeting rewards are considered, 0.154% of the total supply will be rewarded in week one, and the emission will decrease by 0.5% each week.
The YEET sale
In terms of the token launch itself, they have a really interesting mechanism being used.
The sale will be done through Ramen Finance and will work as follows:
When you’re on the sale page, you choose how much BERA you want to bid with and input the price at which you want to bid, effectively defining the FDV that you would like to bid at.
Wait what? I decide the FDV?
Yes, anon, you heard that right.
You choose the valuation that you would like to bid YEET at. The higher the valuation you put, the higher the chance that your bid will be successful and included in the sale.
Once the auction is over and the FDV is decided, all users pay the same price.
So, for example, say you put your price at $100 million FDV, but by the final FDV at the end of the auction was $25 million, your entry price will be at $25 million FDV. What’s better? You also get 4x the amount of tokens with the money you bid with.
Say you bid at $15 million FDV; your bid would be unsuccessful, and the amount you bid will be fully refunded. This ensures that buyers do not end up paying a price they feel is overvalued.
This creates an avenue for price discovery, as every Yeetard can make bids based on how badly they want to be included in the sale. FOMO will make people continuously place their bids higher, thereby making the auction end at a higher FDV but also protecting those who may not be comfortable with an overinflated FDV.
Bonzinomics.
For a more detailed breakdown of how this will work, check out this thread by Lord Pemberton Squigglebop.
Concluding thoughts
In an industry full of Yeetards, you must become the biggest Yeetard to win.
It’s refreshing to see the 2021 spirit back in crypto when all we’ve had this year is pure meme debauchery.
The Yeet game itself is a very interesting concept and given how degenerate the Berachain community is, I’m sure you’re going to see a lot of Yeetards yeeting unholy sums of money into it.
But beyond the game, they also introduce a bonding mechanism to provide true value to the entire Berachain ecosystem.
Yeet perfectly sums up Berachain, a little degen with a little bit of fun, but also providing serious value at the same time.
It’s time to embrace Yeetism and become a Yeetard!
