Degenerative Update— uSTONKS, uGAS, and Rewards Bonus

Yam Finance

Published in

Yam Finance

5 min readMar 9, 2021

We’re excited to share a Degenerative Finance update!

First off, the big news: uSTONKS is now live on Degenerative Finance!

To celebrate this launch we are proud to present extra bonus rewards for both uSTONKS and uGAS!

Bonus Rewards

Currently UMA sends a total of 50,000 UMA each week to the entire synth ecosystem as UMA Dev Mining Rewards. Degenerative Finance receives a proportional share of that based on the total value of uGAS and uSTONKS synths.

Those rewards are distributed as follows:

82% to users minting + LP
18% to Yam Treasury.

This will continue for the next month, but uLABS and YAM will be incentivizing uSTONKS further:

uSTONKS Week 1 (March 9th-March 15)

Additional 5000 $YAM and 5000 $UMA distributed

uSTONKS Week 2 + 3 (March 16-March 29)

Additional 10,000 $YAM and 10,000 $UMA distributed per week

To celebrate the uGAS-Jun21 launch, YAM will also include the following extra rewards for 3 weeks:

uGAS-JUN21 Week 1 (March 9th-March 15)

Additional 5000 $YAM distributed

uGAS-JUN21 Week 2 + 3 (March 16-March 29)

Additional 10,000 $YAM distributed per week

Yam Contributor @nonstoptheo created this table showcasing the potential Liquidity Mining uSTONKS yields when considering the impact of TVL and variable market prices for $YAM and $UMA tokens:

Also there’s more!

We will soon be revealing a set of fun bonus NFTs to reward the first 100 users to:

mint $10K USDC in uSTONKS at the Global Collateral Ratio
LP for 3 weeks

Visuals and features of the NFT will be shared over the next 3 weeks.

uSTONKS Launch

uSTONKS is now officially live on degenerative.finance!

uSTONKS is a synthetic tracking an index of the ten most bullish stocks according to WallStreetBets. Put another way, this synthetic tracks the sentiment, or excitement level, of the r/WSB community.

Because uSTONKS tracks the prevailing sentiment of #WallStreetBets, it gives users the freedom and opportunity to express their opinion on this sentiment outside of the confines of the TradFi ecosystem.

Our first token, uSTONKS-APR21, which expires at the end of April, will be a basket of the following 10 stocks:

A base date will be set where the index is 100 and each stock represents 10 points on the index. The token will base its index off of the December 31, 2020 exchange closes. Each token will be weighed equally in the uSTONKS Index.

This Google Sheet, by the uLABS Team, illustrates the calculations and shows how the Index has performed over the month of January. Feel free to copy the GOOGLEFINANCE functions in the sheet for your personal monitoring of the index value.

What do you think?

Are WSB’s picks undervalued and heading for the moon? Or are you brave enough to short the will of the masses?

Or do you simply want to stay market neutral, mint and LP uSTONKS, and earn high liquidity mining rewards?

uSTONK will launch with a monthly token, uSTONKS-APR21, and its basket of WallStreetBets tickers will rotate throughout the year.

uSTONKS-APR21 will launch in March and run until end of April 2021. The token will expire at 4:00PM EST on April 30th, 2021. The exact closing prices on the NYSE, NYSE Arca and NASDAQ exchanges for each stock will be used to calculate the final settlement of the uSTONKS index.

Similar to uGAS and uVOL, uSTONKS will use the 2-hour TWAP of its own token price to determine whether a position is collateralized or needs to be liquidated. This self-referential logic is needed because uSTONKS is a decentralized synthetic that trades continuously 24/7 whereas the underlying stocks in the uSTONKS index trade during exchange hours which leaves gaps in prices between the 4:00PM EST close and 9:30AM EST open the next day and on weekends and market holidays. Using price feeds from the exchanges to monitor collateral ratios of token sponsors could be problematic outside of market hours especially if there is significant news released on a stock or meaningful macro market forces.

Also please note that the uSTONKS index will not adjust for dividends. Tickers in the current index have little to no dividends being paid and most stocks pay dividends in a predictable manner so there should not be a major impact on the index value from this source. However, we have decided to account for stock splits in the index. If a stock does split uLABS will simply adjust the base price accordingly and the final settlement would have no distorted impact and would only reflect the change in the market capitalization of the company.

For more details on uSTONKS, please see our previous medium post as well as UMA’s.

And now, a quick recap on how to earn UMA and YAM rewards with uSTONKS: