Luka, founder of Ryvo, walks through the three ways yield could work in Ryvo, and the one he thinks is ideal
"I'm personally excited about yield because it reminds me of banks and how they operate. But the yield part isn't fully fleshed out, because there are many ways to do it. What some providers do is, say you have $100 sitting in your wallet, they take that money and deposit it somewhere else, then withdraw it when you want to use it. That's inefficient, it adds friction, you're constantly depositing and withdrawing to these yield protocols, so that's not the way to go"
"Another way is Ryvo integrates into lending platforms, creates and manages strategies to optimize yield, and issues our own internal stablecoin you can use to pay for things. Then we handle the exchange rate, so one Ryvo stablecoin might equal a different amount of real USDC. That complicates things, because when you're paying in Ryvo stablecoin you have to account for the exchange rate"
"The third way, which I personally think is ideal, is where you have a stablecoin you don't need to deposit anywhere, just by holding it you're generating yield. There's another Ownership project that does that, releasing soon. I still have questions around how they track who gets the yield, but there might be a solution there that works for Ryvo too. Essentially, you have all this onchain liquidity, all these stablecoins in the protocol, but the activity, the micropayments by agents, happens offchain. So what if we could make the money work onchain as well? That's the idea of yield"
FT
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