Disclaimer: this post may appear stupid.

In crypto, Gaming has more ability to increase crypto’s adoption and Defi has more ability to increase crypto’s retention. Both are appearing like complete dislike poles. These are just my thoughts/imagination on how to get the best from both. The objective is to divert the Defi rewards into the game-fi.

let’s imagine a new token standard called yield token, this appears like mess (read completely or stop now).

1. YIELD TOKENS-These tokens represent your yield in a particular time interval. The yield tokens are generated when someone locks any token that generates yield. The value of yield is equal to the value of yield tokens. Every token has its own yield token. One can burn their yield tokens to unlock their actual tokens and actual yield.

Example — You have 100 eth, let the present apr of eth be = 5% . If you lock your eth for 6 months, you will get 100 eth-yield tokens whose worth is equal to 2.5 eth. Here locked eth goes to lido to generate yield.

These tokens can also be generated while farming but this time as yield-lps. Yield-lps represents the yield that can be generated by farming particular lp in particular time intervals.

Example — you have 100 usdc-usdt lp ,apr = 30 % in ‘ x ‘ tokens , if you lock then you will get 100 usdc-usdt-yield which is equal to 30 x tokens .

Yield tokens dealing with variable apr and apy

When yield decreases the value of yield tokens decreases and vice versa.

Example — initially eth staking apy = 2 %, so People got 100 eth-yield for 100 eth stake , but now lets suppose it is 6% … staking apy increased, if burn their eth-yield tokens they can get more actual yield now

Apply the same thing to borrowing and lending mechanisms.

Example — suppose Aave’s usdt deposit apy — 3 percent,then one can borrow some other assets like eth and also get 100 yield-d-usdt tokens by locking their deposit. Two tokens at same time.

This can be applied for leveraged lending and borrowing, but this time one will be awarded many yield tokens, but super risky.

How Yield tokens can actually help P2E games ?

One must have NFT to enter into most P2E games but with yield tokens, one can enter directly by locking their eth, Now one must have eth-yield tokens to rent an nft, in one way they are sacrificing their ETH’s staking rewards to the game to enter the game.

Replacing play to do mission model can happen in this way

- A unknown project announces liquidity mining with the help of a game.(they will announce to get network effects and liquidity from the game)

- Players have to add liquidity to participate in the game, so they will get some x-lp yield tokens which are like tickets to enter the mission.

• The first player who completes the mission earns most rewards, and rewards decreases as more players complete the mission.

2) RENTAL NFTS- All NFTs are owned by the game,One need to pay rent/fee to the game to use the nft in the game. Recycle this fee to pay for gamers. In one way it is just another subscription model.

This kind of mechanism may increase defi’s network effects and liquidity and increases gaming’s sustainability. This kind of games require normal and degen modes to avoid distruction.

IF THIS POST HAS ERRORS, FEEL FREE TO SAY IN THE COMMENTS.

Disclaimer: This post reflects the current thoughts and imagination of the author. It does not constitute investment advice or a recommendation or a solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision.

Disclaimer: this post may appear stupid.

In crypto, Gaming has more ability to increase crypto’s adoption and Defi has more ability to increase crypto’s retention. Both are appearing like complete dislike poles. These are just my thoughts/imagination on how to get the best from both. The objective is to divert the Defi rewards into the game-fi.

let’s imagine a new token standard called yield token, this appears like mess (read completely or stop now).

1. YIELD TOKENS-These tokens represent your yield in a particular time interval. The yield tokens are generated when someone locks any token that generates yield. The value of yield is equal to the value of yield tokens. Every token has its own yield token. One can burn their yield tokens to unlock their actual tokens and actual yield.

Example — You have 100 eth, let the present apr of eth be = 5% . If you lock your eth for 6 months, you will get 100 eth-yield tokens whose worth is equal to 2.5 eth. Here locked eth goes to lido to generate yield.

These tokens can also be generated while farming but this time as yield-lps. Yield-lps represents the yield that can be generated by farming particular lp in particular time intervals.

Example — you have 100 usdc-usdt lp ,apr = 30 % in ‘ x ‘ tokens , if you lock then you will get 100 usdc-usdt-yield which is equal to 30 x tokens .

Yield tokens dealing with variable apr and apy

When yield decreases the value of yield tokens decreases and vice versa.

Example — initially eth staking apy = 2 %, so People got 100 eth-yield for 100 eth stake , but now lets suppose it is 6% … staking apy increased, if burn their eth-yield tokens they can get more actual yield now

Apply the same thing to borrowing and lending mechanisms.

Example — suppose Aave’s usdt deposit apy — 3 percent,then one can borrow some other assets like eth and also get 100 yield-d-usdt tokens by locking their deposit. Two tokens at same time.

This can be applied for leveraged lending and borrowing, but this time one will be awarded many yield tokens, but super risky.

How Yield tokens can actually help P2E games ?

One must have NFT to enter into most P2E games but with yield tokens, one can enter directly by locking their eth, Now one must have eth-yield tokens to rent an nft, in one way they are sacrificing their ETH’s staking rewards to the game to enter the game.

Replacing play to do mission model can happen in this way

- A unknown project announces liquidity mining with the help of a game.(they will announce to get network effects and liquidity from the game)

- Players have to add liquidity to participate in the game, so they will get some x-lp yield tokens which are like tickets to enter the mission.

• The first player who completes the mission earns most rewards, and rewards decreases as more players complete the mission.

2) RENTAL NFTS- All NFTs are owned by the game,One need to pay rent/fee to the game to use the nft in the game. Recycle this fee to pay for gamers. In one way it is just another subscription model.

This kind of mechanism may increase defi’s network effects and liquidity and increases gaming’s sustainability. This kind of games require normal and degen modes to avoid distruction.

IF THIS POST HAS ERRORS, FEEL FREE TO SAY IN THE COMMENTS.

Disclaimer: This post reflects the current thoughts and imagination of the author. It does not constitute investment advice or a recommendation or a solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision.