Introducing Avo Yield Protocol

Avo Yield

4 min readFeb 20, 2021

[Hartgill, 1997]

When asked to name the greatest invention in human history, Albert Einstein simply replied “compound interest.”

The “8th Wonder of the World”, few understand…

Chill Farm with $AVO & Enjoy the Compound Interest Wonders

AvoYield is the first BSC token to re-imagine the concept of frictionless yield generation and deflationary mechanisms.

AVO charges an adjustable transaction fee ranging anywhere from 1–10%. The mechanics of the fee goes as follows:

Initial transaction fee will start at 2% and will be increased daily by 0.5%, until the community according to the community vote.
75% of the fee will be re-distributed to existing AVO holders instantly and automatically at the time of each transaction.
The remaining 25% will be burnt instantly, thereby deflating the total supply at each transaction.
In the near future there will be a DAO governance contract allowing the adjustability of the fees, pushing further the decentralisation of the protocol.

After the initial period, governance by AVO holders will decide how high the fees should be, which further improves the decentralisation of the protocol.

The Problem

The Problem of unchangeable fees: These risks come with any mechanic of a smart contract. By deciding on a fee that cannot be changed, the Token therefore cannot adapt to a change in the free market. Frictionless Yield protocols did very well while Ethereum fees were fairly low and the price of these protocols was increasing steadily. After initial sell-offs and high gas fees on the Blockchain however, there was a change in the dynamic of the market. Incentive to pay up to 12% of your USD value to buy a Token, knowing that you will have to pay another 12% once you want to sell it, was shrinking drastically.
By setting these fees as a constant and leaving them unchangeable, it is therefore impossible to appropriately respond to changes in the market.
Problem of fees on the Ethereum Blockchain: Most of the current DeFi projects have been built on the Ethereum Blockchain, increasing the power of the network effects and enhancing the security of the protocol. Although, this has also led to the appeciation of the ETH price which has skyrocketed Ethereum transaction fees. The result is that the Ethereum Ecosystem is becoming a pay-to-win network mostly accessible by the wealthiest wallets.

The Solution

AVO is uniquely designed to address these problems and reduce the mentioned risks and shortcomings.

The Problem of unchangeable fees: By introducing adaptable reallocation tax and burn rate, AVO essentially is able to respond to any changes in the market. During the initial phase, we adjustments will be called by the Team. Afterwards, we will launch governance contracts and let the holders decide how high the fees should be at any given point. This further improves the decentralisation of AvoYield.
Problem of fees on the underlying Blockchain: By launching AVO on the Binance Smart Chain, we effectively avoid the problem of high fees. BSC has a tiny fraction of fees compared to Ethereum, which in turn creates much more trading volume and therefore more AVO rewards for holders and higher deflation.

AVO Supply & Tokenomics

The maximum supply of Avo is 1,000,000, which is continuously burned by 25% of the current fee applied to each transaction.

AVO Token Distribution

40% Public Sale
32% Initial Liquidity
10% Private Sale
10% Dev Fund
5% Marketing
3% Community Rewards

Presale & Listing

Information about the presale will be announced soon through our telegram group, where cool avocados hang around.

We will list on Pancakeswap after the presale is completed.

Next Steps

Community growth through marketing actions & partnerships
Governance contracts to let holders decide tax and burn rates
Dashboard — Visualisation of current yield, calculations of compounded yield for your holdings, current burn rate and burnt tokens, projection of deflation