Wayland is a new DeFi 2.0 platform based on Decentralized Reserve Currency protocol. Each WAND token is backed by a basket of assets (e.g. BUSD) in the Wayland treasury, built in the BSC $WAND is one of the firts DeFi 2.0 in BSC.
Wayland DAO consists of its protocol managed treasury, protocol owned liquidity (POL), bond mechanism, and staking rewards that are designed to control supply expansion, owns liquidity and rebase system for more profitable protocol.
Bond sales generate profit for the protocol, and the treasury uses the profit to mint WAND and distribute them to stakers. With liquidity bonds, the protocol is able to accumulate its own liquidity.
How do I participate in Wayland?
the firts step is go to pancakeswap and buy $WAND, connect your wallet and after the purchase go to the main web.
Inside the web there are two main strategies for market participants: staking and bonding.
Stakers stake their WAND tokens in return for more WAND tokens.
while bonders provide LP or BUSD tokens in exchange for discounted WAND tokens after a fixed vesting period, there are the two main ways to participate in Wayland Dao.
The benefits of wayland it divides in two tipes, the stakers and the bonders:
Stakers: The benefit for stakers comes from supply growth. The protocol mints new WAND tokens from the treasury, the majority of which are distributed to the stakers. The gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
Staking allows you to earn a passive WAND income via auto-compounding. By staking your WAND with Wayland DAO, you receive sWAND (staked WAND) in return at a 1:1 ratio. After that, your sWAND balance will increase automatically on every epoch (every 5 hours there is a rebase) based on the current APY.
Bonders: The benefit for bonders comes from price consistency. Bonders commit a capital upfront and are promised a fixed return at a set point in time; that return is in WAND and thus the bonder's profit would depend on WAND price when the bond matures. Bonders benefit from a rising or static WAND price.
Protocol-Owned Liquidity (POL). POL is one of the innovations, the protocol has its own perpetual liquidity and so never needs to worry about liquidity providers suddenly drying up.
Features of POL
-POL ensures that there is always ample liquidity for $WAND on Pancakeswap
-POL continually earns LP fees, allowing for continual growth.
There is no independent access to the POL, which means zero rug pull risk, and reliable liquidity
FAQ
WAND is backed, not pegged. Each WAND is backed by 1 BUSD, not pegged to it. Because the treasury backs every WAND with at least 1 BUSD, the protocol would buy back and burn WAND when it trades below 1 BUSD. This has the effect of pushing WAND price back up to 1 BUSD. UDO could always trade above 1 BUSD because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.
You might say that the WAND floor price or intrinsic value is 1 BUSD. We believe that the actual price will always be 1 BUSD + premium, but in the end that is up to the market to decide.
How does treasury mechanics works?
When WAND trades above 1 BUSD, the mints and sells new WAND.
When WAND trades below 1 BUSD, the protocol buys back and burns WAND.
This results in the Wayland protocol effectively managing a treasury that can be used to stabilize the value of an WAND token against the basket of assets held by the protocol. WAND maintains more than enough reserves to account for the market buying/selling required during high-volatility days.
How does bonding work?
Bonds are another strategy used by Wayland DAO to provide more liquidity to the protocol while also providing a more conservative and reliable return. The bonding function allows you to trade for WAND at a discount to the price at the time of the trade. Bonding provides locked liquidity in the Pancakeswap pools that facilitate market operations and protect token holders. You will need an equal amount of WAND and BUSD (in value). Once you add them to WAND-BUSD Pancakeswap liquidity pool you will receive a LP which you then bond on Wayland, and after a 5 day vesting period you sell bond to the protocol.
How does staking work?
When you stake your WAND it gets locked in the protocol which means less WAND on the market - creating value for protocol. You can unstake whenever you want.
Staking rewards on WAND tokens are variable and are extremely high right now. The rewards are tweaked by the protocol in response to the eventual stabilization of WAND value. The goal of these rewards, which are a part of the initial growth phase of the protocol, are used to drive users to grow the total amount of WAND they hold. WAND wants to encourage the accumulation of more WAND, expecting that these APYs will compensate for the potentially lower price that WAND will stabilize at in the future (which is a function of treasury, yield, and market forces).
Why is PCV (Protocol Controlled Value) important?
As the protocol controls the funds in its treasury, WAND can only be minted or burned by the protocol. This also guarantees that the protocol can always back 1 WAND with 1 BUSD. You can easily define the risk of your investment because you can be confident that the protocol will indefinitely buy WAND below 1 BUSD with the treasury assets until no one is left to sell.
As the protocol accumulates more PCV, more runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer term because more funds are available in the treasury.
Why is POL (Protocol Owned Liquidity) important?
Unus aims to own most of its liquidity with its bond mechanism. This has several benefits:
WAND does not have to pay out high farming rewards to incentivize liquidity providers a.k.a renting liquidity.
WAND guarantees the market that the liquidity is always there to facilitate sell or buy transaction.
By being the largest LP (liquidity provider), it earns most of the LP fees which represents another source of income to the treasury.
All POL can be used to back WAND. The LP tokens are marked down to their risk-free
What is rebase?
Rebase is a mechanism by which your staked WAND balance increases automatically. When new WAND are minted by the protocol, a large portion of it goes to the stakers. Because stakers only see staked WAND balance instead of WAND, the protocol utilizes the rebase mechanism to increase the staked WAND balance so that 1 staked WAND is always redeemable for 1 WAND.
What is reward yield?
Reward yield is the percentage by which your staked WAND balance increases on the next epoch. It is also known as rebase rate.
What is APY?
APY stands for annual percentage yield. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of Wayland, your staked WAND represents your principal, and the compound interest is added periodically.
One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 2%, if you start with a balance of 1 UDO on day 1, after a year, your balance will grow to about 1377.
The power of compounding
Why does the price of WAND become irrelevant in long term?
As illustrated above, your WAND balance will grow exponentially over time thanks to the power of compounding. Let's say you buy an WAND for $400 now and the market decides that in 1 year time, the intrinsic value of UDO will be $2. Assuming a Daily compound interest rate of 2%, your balance would grow to about 1377 UDO by the end of the year, which is worth around $2754. That is a cool $2354 profit! By now, you should understand that you are paying a premium for WAND now in exchange for a long-term benefit. Thus, you should have a long time horizon to allow your WAND balance to grow exponentially and make this a worthwhile investment.
What will be WAND's intrinsic value in the future?
There is no clear answer for this, but the intrinsic value can be determined by the treasury performance. For example, if the treasury could guarantee to back every WAND with 100 BUSD, the intrinsic value will be 100 BUSD. It can also be decided by the DAO. For example, if the DAO decides to raise the price floor of WAND, its intrinsic value will rise accordingly.
How does the protocol manage to maintain the high staking APY?
Let’s say the protocol targets an APY of 100,000%. This would translate to a rebase rate of about 0.6328%, or a Daily growth of about 2%. Please refer to the equation above to learn how APY is calculated from the rebase rate.
If there are 100,000 of WAND staked right now, the protocol would need to mint an additional 2000 WAND to achieve this Daily growth. This is achievable if the protocol can bring in at least 2000 BUSD Daily from bond sales.
Do I have to unstake and stake WAND on every epoch to get my rebase rewards?
No. Once you have staked WAND with Wayland, your staked WAND balance will auto-compound on every epoch. That increase in balance represents your rebase rewards.
Roadmap
DECEMBER 2021
-PRE-SALE
-WAYLAND launch
-Staking and Bonding live
-App live
-Marketing operation initiates
-BUSD, USDT Bonds
Q1 2022
-Coingecko and Coinmarketcap listing
-Marketing PUSH
-RugDoc KYC
-Landing Page
-Further partnerships
-Additional Bonds
-Certik Audit
-NFT Collection (Wayland Characters)
2022 and Beyond
-Lending and Borrowing protocol on Wayland DAO
-Listing on Centralised Exchanges
-General cross-chain expansion
-Wayland BRIDGE
-WAYLAND LAUNCH: launchpad to incubate innovative start-ups
-More exchange listings
