The following content is for analysis and discussion only, Not financial advice.

In the DeFi Summer of 2020, Compound Finance launched Liquidity Mining (LM) with millions of dollars flowing into Compound smart contracts. Liquidity providers (LPs) maximize returns by lending, then borrowing the same assets and lending again. Not to be outdone, Balancer then launched the BAL LM campaign; the high-yielding LPs that emerged from the fork of Uniswap V2 also eventually led to the vampires of Sushiswap launching an attack on it. In the past, the goal of the DeFi protocol Ecosystem has been to get an attractive compound return by taking as many tokens as possible and selling them off. This created a death spiral for later token prices to plummet, deposit yields to fall, and LPs to leave.

There is no denying that new things are always new in the midst of trial and near destruction. As of 2023, Uniswap V3 has gone steady. DeFi protocols are making new ecological attempts, with the UVT ECO Protocol attracting attention with the combination of POS mining and smart algorithms.

[Project Overview]

UVT ECO's new POS Mining analyzes the protocol through the unique features and variables made by liquidity mining deflation, will arithmetic, consensus sharing, locked supply ratio, stake time and arithmetic pool model. Note that the arithmetic power follows a two-decrease system (as opposed to binary, where the base 0 and 1 bits are halved on every 2) while the yield is supplied in a range of stepped/D values, with dual nodes having a constant fluctuating effect on TVL. All the proceeds of arithmetic will enter the bottom pool for centralized liquidity management, the combined effect of turnover rate, and flow affect Token price, and the automatic destruction part is automatically triggered by the protocol to execute into the black hole.

Paradigm Highlights

a.UVT ECO ecosystem POS mechanism, i.e., the amount of Staked Crypto-assets to obtain blockchain bookkeeping rights, which is rewarded with Cryptocurrency.

b.UVT ECO jointly influences token yield with equity miners and Validator, and is jointly influenced by arithmetic power, ecological consensus (variable), locked supply ratio, Staking time and arithmetic pool model, which has been embedded in smart protocols for automatic execution.

c. Following the two-decrease system of arithmetic power, the yield is supplied in a range of stepped/D values, while the data in the arithmetic pool library is actively attributed to the main pool to stimulate the impact of market liquidity.

d. Enter the UVT ECO ecology for verification of contributors to set the pass filter, the repurchase access to the initial tokens of 90% will be directly destroyed in the black hole.

e. In the first paradigm of data relations in the protocol using DPOS distributed nodes, collection of DPOC distributed storage to ensure the security and stability of the protocol data.

Main prevention Measures

a. The potential risk of the main direction in the current core ecological protocol is the possible lack of momentum under the sentiment of the general Crypto market environment. UVT ECO protocol developers also pay attention to this risk point, yield algorithm system range value fluctuations.

b. As the ECO protocol is implemented in the form of on-chain smart contracts, the access threshold is high for ordinary users, the ongoing proof of interest and new Validator must be for the use of the wallet and the understanding of the Dapp function, the ECO protocol developers need to pay attention to the results of the community voting interaction upgrade.

Ecological Deflation Logic

a. In the UVT ECO protocol, all participants are given blockchain bookkeeping rights by the number of Staking, and block rewards and yields will be allocated to both miners and Validator. Miners and validators exist in a quantitative ratio, and when miners stake more rewards than validators, validators will be rotated to ensure the sustainable operation of the ecological protocol.

b. Introduction of regional centralized liquidity which can allocate part of the liquidity to the initial validators it sets up (NFT nodes and LP nodes are the initial validators) for more advantageous block rewards and more attractive to the initial contributors to the ecological protocol.

c. Black hole destruction and two-minus system arithmetic reduction (widely used in computing technology to produce reverse calculation of binary numbers.

1. The innovative halving of 0 and 1 bits as the base for every 2, i.e., the relationship between yield and arithmetic power is a/β, and the operating rule is a=0.5a when β*2; key factor 1).

2. (The range variable yield-arithmetic power relationship is (a, β), and the operating rule is that when β is in [1,2] then, a is constant 16/unit 10 thousand with decreasing ratio; when β is in (2,+∞) then a is constant 8/unit 10 thousand with decreasing ratio *10000/unit Day; key factor 2:)

Ensures that the token supply does not inflate the circulation, while increasing the TVL (total locked-in value, i.e., the total amount of liquidity in the liquidity pool).

d. Miner contributors who want more rewards will need more votes to have a chance to run for validator, which seems to be an intentional orientation of the protocol? This could be useful for miners to Staking by buying more tokens to get more votes. (See veTokenomics type DeFi protocol for bribe voting) and also does effectively increase the demand point for tokens from miners.

e.UVT ECO is not a single variable DeFi protocol, as ecosystem protocols exist with more complex financial models, a simple TVL is hardly a single indicator to measure its market share. Including for consensus sharing in the factor setting, the reward and destruction weight is 1/9, further accelerating the reduction of market supply (the inevitable game with the demand of bribers).

Abstract：

UVT ECO as a multivariate compound financial model, will automatically trigger adjustments through the key factor over a long period of time to steadily gain ties to miner contributors and validators, Token holders stake their tokens over a sustained period of time to generate higher returns for themselves, and have an effective impact on market liquidity (trading volume, bribe demand & yield reduction hedging game together) to make an effective impact.

Extended reading by the same author：

'Progressive Decentralization Evolves into a Clear Windfall of Protocols - DYDX Releases V4 Decentralized Off-Chain Order Book and Matching System'

The Graph, which eliminated hosting services, is working to migrate centralized hosting services to a decentralized network

Lido Votes to Not Limit the Number of Staked ETH, Plans to Complete Decentralization by Adopting Distributed Node Technology

UVT Twitter：https://twitter.com/UvTokenOfficial

UVT Website：http://www.uvtoken.com/#/