Protocol Profitability

A Calculated Bet on Memecoins' Continued Extreme Volatility

Meme coins are inherently extremely volatile, anyone with an understanding of the crypto industry knows this.

The innovation of the Meme Coin Yield Platform started with the question "how can we capture profit from the obvious future continuation of meme coin volatility".

The Memecoin Yield Platform is our answer.

As mentioned,

The Meme Coin Yield Platform functions is: holders of a multitude of large and smaller/lesser-known meme coins can stake any of these meme coins RISK FREE in the Meme Coin Yield Platform and earn yield.

This yield is paid in a separate (second) native token $LFYIELD. $LFYIELD is minted and paid out by the protocol.

$LFYIELD's value is driven by capital injections from the LFGrow Protocol's Treasury, as well as rewards and a myriad of benefits throughout the LFGrow ecosystem for staking/burning $LFYIELD.

Here's the beautiful part of how the Meme Coin Yield Protocol functions:

There is a staking fee, and unstaking fee for all memecoin stakers.

With the constant extreme volatility of meme coins, LFGrow makes a carefully calculated bet on meme coin holders constantly staking, and unstaking from the protocol (much more often than an asset such as USDC or BTC) as their meme coins swing violently in price. Meaning, the value we generate from these fees will be an extreme amount greater than the protocol treasury funds we need to dedicate to drive value to $LFYIELD.

This profit the protocol generates is then added to the LFGROW treasury and ultimately utilized to combat the sell pressure on $LFG. The innovation of the Meme Coin Yield Platform is that it is completely scalable, with the $LFG token itself as the offer of risk free profits for otherwise idle assets earning no yield allows us to accrue large TVL inflow immediately.

The Perpetual Profit Loop of Meme Coin Staking:

The Meme Coin Yield Platform functions similar to a business, with expenses and profit margins.

The Expense is the capital injected into $LFYIELD from the LFGROW Protocol Treasury, in order to ensure the yield offering of the MemeCoin Yield Platform is exciting and attractive for stakers at all times.

The Revenue from the Meme Coin Yield Protocol is derived from the staking entry and exit fees.

Profit is achieved when the revenue outweighs the expense of the Meme Coin Yield Platform.

The profitability of the Meme Coin Yield Platform is derived from a carefully calculated bet on fee revenue from the constant staking and unstaking of memecoin holders heavily outweighing the required protocol capital to drive value to the $LFYIELD reward token.

The Perpetual Profit Loop looks like this in action:

This simple, yet incredibly powerful flywheel, fuels unmatched sustainability for the LFG ecosystem.

There is no other protocol to date that takes advantage of this phenomenon.