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Pegbreaker
  • Whitepaper
  • platform and features
    • Platform Features
    • Minting Strategy
    • LP Staking Program
    • Yield Strategy – Sustainable On-Chain Yield Generation
    • Lending platform
    • Epoch Staking and Reward System
    • Bond Issuance and Management
    • Governance, Proposals and Delegation
    • Points System
    • Maximizing Profits Through Risk-Free Approach
    • Leveraging AI Tools to Simplify the Experience for Users
    • AI-Driven MEV Bot Strategy
    • Exploring DeFi Vulnerabilities
    • Roadmap and Future Developments
    • Security and Compliance
    • Frequently Asked Questions
  • DAPP
    • WIP....
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On this page
  • How the PegBreaker Yield Strategy Works
  • USDC Deposits
  • ETH Deposits
  • DAI Deposits (Auto-Swapped to USDC)
  • This structure ensures that yield is consistently generated without exposing users to price volatility risks.
  • Yield Distribution Model
  • Unlike inflationary rewards, PegBreaker distributes real yield that enhances token value instead of diluting it.
  • Why This Strategy Works
  • This model makes PegBreaker a sustainable, long-term yield ecosystem rather than a short-lived farming scheme.
  • Implementation & Next Steps
  • Why This Model is the Future of DeFi Yield
  1. platform and features

Yield Strategy – Sustainable On-Chain Yield Generation

The PegBreaker Yield Strategy is designed to generate consistent, risk-managed yield using on-chain delta-neutral strategies. This ensures sustainable rewards for DPB stakers while maintaining deep liquidity for DPG as a yield-bearing stablecoin.

Unlike traditional inflationary DeFi rewards, PegBreaker’s model creates real yield through ETH staking, perpetual funding rates, and liquidity incentives, making it self-sustaining and long-term viable.

How the PegBreaker Yield Strategy Works

Users can deposit USDC, ETH, or DAI, and the system automatically allocates those funds into various DeFi yield sources, ensuring optimal capital efficiency and risk hedging.

USDC Deposits

  • 50% of USDC is converted into ETH.

  • 50% of USDC is used to short ETH on a perpetual DEX (e.g., GMX, Drift).

Yield is generated from:

  • ETH staking rewards (via Lido, EigenLayer).

  • Perpetual funding fees (if short ETH funding is positive).

  • Liquidity mining & stablecoin yield strategies (Curve, Uniswap).

ETH Deposits

  • ETH is deposited as collateral to borrow USDC.

  • Borrowed USDC is used to short ETH, creating a delta-neutral position.

Yield is generated from:

  • ETH staking rewards (Lido, EigenLayer).

  • Perpetual funding rate arbitrage (shorting ETH with positive funding).

  • Liquidity pool fees (if ETH is paired with stable assets).

DAI Deposits (Auto-Swapped to USDC)

  • DAI is converted into USDC, ensuring full collateralization.

  • USDC follows the standard yield strategy, generating returns from staking, shorting, and liquidity incentives.

Liquidity Management:

  • 90% of USDC remains locked on Uniswap forever, ensuring deep liquidity.

  • 10% is allocated to the DAO Treasury for strategic incentives.

This structure ensures that yield is consistently generated without exposing users to price volatility risks.

Yield Distribution Model

Once the strategy generates yield, it is distributed strategically to sustain the PegBreaker ecosystem.

50% to DPB Staking Rewards

  • DPB stakers earn real yield instead of being diluted by token emissions.

  • Encourages long-term staking, reducing circulating DPB supply.

  • Ensures stakers retain full governance voting rights while earning passive rewards.

50% to DPB Buybacks & Burns

  • A portion of the yield is used to buy back DPB tokens from the market.

  • A percentage of these tokens are burned, decreasing total supply and increasing scarcity.

  • This creates constant demand for DPB, strengthening price action and ensuring sustainability.

Unlike inflationary rewards, PegBreaker distributes real yield that enhances token value instead of diluting it.

Why This Strategy Works

  • DPG Becomes a Yield-Bearing Stablecoin – Users can earn passive yield while holding a stable, fully collateralized asset.

  • Self-Sustaining Liquidity – 90% of USDC remains permanently locked on Uniswap, ensuring deep liquidity.

  • Risk-Neutral Yield Generation – The delta-neutral hedging ensures PegBreaker isn’t exposed to market volatility.

  • Boosts DPB Utility – Encourages both staking and active trading, increasing PegBreaker’s overall liquidity.

  • No Inflationary Emissions – PegBreaker distributes real yield, not artificially minted tokens.

This model makes PegBreaker a sustainable, long-term yield ecosystem rather than a short-lived farming scheme.

Implementation & Next Steps

Smart Contract Deployment

  • Automated ETH staking, perpetual shorting, and liquidity routing mechanisms.

  • Smart yield-splitting contracts to distribute staking rewards and buybacks.

Governance Vote on Yield Allocation

  • DAO members determine the exact yield allocation split and adjustments over time.

  • Future governance proposals can adjust yield percentages dynamically.

Liquidity Onboarding & Adoption

  • Incentivize USDC, DAI, and ETH deposits to drive ecosystem growth.

  • Target yield-seeking DeFi users looking for passive income with minimal risk.

Why This Model is the Future of DeFi Yield

PegBreaker’s on-chain delta-neutral strategy creates a self-sustaining, high-yield ecosystem where DPG remains stable, DPB retains value, and users benefit from real, external yield sources.

  • Fully on-chain, eliminating reliance on centralized T-bills.

  • No inflationary emissions, ensuring long-term token value.

  • Deep liquidity with locked USDC pools, preventing market instability.

  • Risk-hedged, delta-neutral strategies that generate consistent rewards.

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Last updated 4 months ago