YND & veYND Tokenomics
YieldNest's token economic model
Last updated
YieldNest's token economic model
Last updated
YieldNest operates on a two-token model consisting of YND and veYND. veYND is acquired by staking YND. veYND holders earn all protocol revenue through a buyback-and-distribute model, aligning incentives between governance participants and the protocol’s long-term growth.
The YieldNest governance system is built on Aragon V2, leveraging its framework to strengthen and refine DAO operations continuously. When users stake YND, there is a brief warmup period before governance power activates, but they immediately start earning yield, which grows alongside their voting power. For detailed information, check the veYND Parameters or ask the community for more info. We love ideas, input, and collaboration. This will be rewarded.
Exiting veYND to reclaim YND requires a 30-day queue and a minimum deposit of 42 YND for locking. For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with StakeDAO and Convex, will provide an alternative staking solution. These liquid lockers will not be available at launch but will be rolled out over time. veYND holders will have the option to merge or unmerge their positions, offering greater flexibility in governance participation and yield optimization.
Users deposit assets into the YieldNest ecosystem, where funds are allocated across:
YieldNest Integrations
YieldNest Products
YieldNest subDAOs
These assets are deployed into LRT Strategies, where they immediately start generating auto-compounding yields for users optimized and supported by NEST AI.
Yield & Fee Generation:
The yield distributor collects returns from LRT strategies.
Fees are dynamically taken per strategy and flow into the fee distributor.
Incentive gauges, governed by veYND holders, allocate YND across a selected set of whitelisted gauges that are monitored and optimized by NEST AI in collaboration with Merkl.
Governance & Revenue Distribution:
By default, veYND holders govern LRT strategy fees, with fee distribution set to 20% to the Treasury & subDAOs and 80% back to veYND holders.
Fees collected are used in a buyback-and-distribute model, where YND is bought back and distributed to veYND holders.
YieldNest subDAOs generate additional revenue, which also feeds into this system.
YND & veYND Governance Mechanics:
YND holders stake their tokens to receive veYND.
veYND represents governance power, which scales with the lockup period—the more governance power owned, the higher the share of collected fees.
veYND holders vote on key decisions related to fee distribution, integrations, products, and subDAOs, all supported by NEST AI.
veYND holders directly benefit from protocol revenue, making it profitable to stake YND and participate in governance.
For those who prefer delegated voting and auto-compounding without the exit queue, liquid lockers, developed in collaboration with StakeDAO and Convex, will provide an alternative staking solution. These liquid lockers will not be available at launch but will be rolled out over time. veYND holders can merge or unmerge their positions from the liquid locker, providing greater flexibility in governance participation and yield optimization.
veYND holders directly profit from MAX LRTs, which function as an evolving, intelligent DeFi engine. These AI-enhanced yield aggregators continuously analyze data, discover new strategies, and optimize capital deployment, ensuring that the collective efforts and yield generated by both human and AI-driven decision-making flow back to veYND stakers.
MAX LRTs evolve continuously through NEST AI, which operates 24/7 to identify, test, and propose new strategies. Initially, these strategies are integrated externally, rigorously monitored, and assessed for safety and efficiency. Once validated, they are enshrined within MAX LRTs under the governance of a dedicated subDAO, ensuring optimal execution. This hybrid model—where AI autonomously scouts and oversees strategies while governance fine-tunes parameters—creates a self-expanding system. Over time, MAX LRTs could transition toward full autonomy, redefining yield optimization at scale.
Read the full MAX LRT docs for more info.
As more data is fed into the system, MAX LRTs learn, adapt, and refine their strategies over time. New strategies are first introduced as external integrations, undergoing rigorous testing and monitoring. Only those that demonstrate long-term safety and efficiency are enshrined within the MAX LRT, operating under subDAO governance.
The modular and flexible architecture of MAX LRTs ensures that strategies always sync back to their main settlement layer. For example, ynETH MAX (ynETHx) settles on Ethereum L1 but can deploy and integrate strategies across Ethereum L2s or any trustless interoperable chain, optimizing capital efficiency while maintaining L1 settlement assurances.
As MAX LRTs autonomously integrate and expand, veYND holders benefit in multiple ways:
All profits and protocol revenue from MAX LRTs are distributed to veYND holders via a buyback-and-distribute model.
The increasing intelligence of MAX LRTs enhances capital efficiency, growing the overall yield potential of the system.
AI-driven strategy optimization ensures continuous improvement, compounding the value captured by veYND holders over time.
By staking YND for veYND, holders position themselves at the core of this DeFi engine, benefiting from the AI-driven evolution of MAX LRTs. As the system expands, refines, and automates, the yield flow back to veYND holders increases, making it a highly profitable long-term staking mechanism.
This hybrid model of AI automation and governance oversight could ultimately lead to a fully autonomous, self-optimizing financial system, redefining yield generation and risk-adjusted returns at the highest level. 🚀
