#7 Investment Proposal - Yei Finance

Investment Proposal
, ,
1

1. Project Overview

Project Name : Yei Finance
Company Name : Dagobah Fintech Ltd.
Company Location : Seychelle
Category : DeFi
Official Website : https://www.yei.finance/

Whitepaper : https://docsend.com/view/veychq2skg3jx8p5

TGE Timing (expected date) : Q2 2025

Token Information

  • Token Ticker: YEI
  • Token Type: ERC-20
  • Explorer Link: Before TGE
  • Total Supply: 1,000,000,000
  • Current Circulation Supply: N/A(Before TGE)
  • Smart Contract: N/A(Before TGE)
  • Audit Report: Audit Report
  • Market Cap: N/A(Before TGE)
  • Unlock Schedule: Unlock Schedule

2. Team

Executive Members

  • CEO: Austin Chien
  • CTO: Frank Wang
  • CMO: Jason Hsu

History and Milestones

  • April 2023: Project development initiated
  • June 2023:
    • June 4: Mainnet launch on Sei Network
    • June 15: Reached $10M TVL milestone
    • Late June: Became the largest protocol on Sei Network
  • July 2023:
    • July 4: Achieved $50M TVL milestone
  • September 2023:
    • September 20: Surpassed $100M TVL
  • December 2023:
    • December 1: Exceeded $150M TVL
  • Community and User Growth
    • Over 100,000 participants in Points Campaign
    • Daily Active Users (DAU) exceeding 4,000
    • Total user base surpassing 120,000
    • Successfully conducted DeFi campaigns with major exchanges:
      • Bitget
      • Gate.io
      • OKX (Combined participation exceeding 100,000 users)
  • Twitter community growth: Over 80,000 followers

3. Business

Business Status

Project Description

Yei Finance – Next Generation Omnichain Liquidity Infrastructure
Yei Finance is an omnichain liquidity infrastructure designed to solve pain points in DeFi by maximizing capital efficiency and unlocking multiple layers of yield through Liquidity Stacking. Yei transforms single-use liquidity into a multi-functional resource, combining a money market, swap, and cross-chain hub into a seamless super app.

  • What Makes Yei Finance Unique?
    Yei Finance introduces a Liquidity Stacking mechanism that first deposits user liquidity into a Core Yield Layer to earn base lending yield. Unutilized liquidity is then stacked into a Stacked Yield Layer to power additional use cases like trading (via YeiSwap) and modular money markets.
    This innovation delivers unmatched capital efficiency and generates the best yields across ecosystems. By enabling permissionless creation of lending pools and simplifying multi-chain DeFi navigation, Yei Finance eliminates barriers for retail and institutional users alike.
    As the first truly omnichain liquidity platform, Yei can onboard any new L1/L2 ecosystem with core DeFi features faster, more efficiently, and with fewer resources than current players.

  • Why Invest in Yei Finance?

    • Best-in-class capital efficiency through Liquidity Stacking
    • Multi-chain support with a rapidly growing user base
    • Superior yields compared to other DeFi platforms
    • Permissionless lending pools for modular flexibility
    • Seamless onboarding for new L1/L2 ecosystems
    • Early traction with $135M+ TVL and significant investor backing

Problems to Solve

  1. Limited DeFi accessibility and complex user experience in traditional DeFi protocols
  2. High entry barriers for new users in the DeFi space
  3. Inefficient capital utilization in existing DeFi platforms
  4. Lack of sustainable yield generation mechanisms

Project Features

  1. Lending & Borrowing Protocol

    1. Flexible lending options for multiple assets
    2. Competitive interest rates
    3. Real-time collateralization ratio monitoring
    4. Smart liquidation mechanisms
    5. 11 asset support

  2. E-Mode

    1. Higher borrowing capacity for correlated assets
    2. Enhanced capital efficiency
    3. Specialized risk management for asset categories

  3. Isolated Mode

    1. Risk-controlled borrowing environment
    2. Asset-specific isolation
    3. Limited exposure to risky assets

  4. Altcoin Market Integration

    1. Wide range of supported altcoins
    2. Market-specific risk parameters

  5. Yield Layer

    1. Automated yield optimization
    2. Multiple yield strategies
    3. Compound interest optimization

  6. Cross-Chain Functionality

    1. Seamless multi-chain operations(Sei, Base, Arb, OP, BNB)
    2. Bridge integration (Stargate, CCTP)
    3. Cross-chain asset transfer

  7. Additional Benefits:

    1. Intuitive user interface
    2. Gas optimization
    3. Enhanced security measures
    4. Mobile-friendly design

Key Achievements

  • Rapid TVL growth from launch to $150M+ within 6 months
  • Largest protocol on Sei Network
  • 120,000+ total users
  • 4,000+ daily active users
  • Strong community engagement with 80,000+ Twitter followers
  • Successful partnerships with major exchanges (Bitget, Gate.io, OKX)
  • Over 100,000 participants in points campaign

Competitor Comparison

  • Superior user experience compared to traditional DeFi platforms
  • More competitive APY offering
  • Better capital efficiency
  • Faster transaction processing on Sei Network
  • More accessible entry points for new users
  • Enhanced security features

Tokenomics

Token Utilities

  1. YEI Token

    1. Rewards for liquidity providers
    2. Convertible to veYEI through locking
    3. Base for governance weight
    4. Protocol fee sharing
    5. Ecosystem participation incentives

  2. veYEI (NFT Format)

    1. Governance voting power
    2. Vote-directed emissions
    3. Bribe rewards earning
    4. Enhanced reward multipliers
    5. NFT transferability benefits

Revenue Model of the Protocol

  1. Fee Generation

    1. Lending and borrowing fees
    2. Protocol fees from transactions
    3. Liquidation fees
    4. Cross-chain bridge fees

  2. Value Capture

    1. Protocol revenue distribution to veYEI holders
    2. Bribing marketplace fees
    3. Custom pool creation fees
    4. Performance fees from yield strategies

Value to Kaia Ecosystem

  1. Innovation

    1. NFT-based governance token model
    2. Efficient bribing marketplace
    3. Advanced yield strategies
    4. Cross-chain capabilities

  2. Market Impact

    1. Enhanced liquidity depth
    2. Improved capital efficiency
    3. Reduced market fragmentation
    4. Sustainable yield generation

  3. User Benefits

    1. Multiple revenue streams
    2. Flexible participation options
    3. Governance involvement
    4. Long-term value alignment

  4. Ecosystem Development

    1. Attracting new projects
    2. Supporting token launches
    3. Building sustainable DeFi infrastructure
    4. Creating network effects

Strategies

Tokenomics Design

  1. Long-term holder incentivization through veYEI
  2. Balanced emission schedule
  3. Vote-escrowed mechanism for stability
  4. Bribing system for liquidity direction

Business Plan

Marketing Strategy

  1. Digital Presence

    • Social media campaigns (Twitter, Discord, Telegram)
    • Educational content creation
    • Influencer collaborations
    • AMA sessions and live events
    • Regular market updates and insights

  2. Growth Initiatives

    • User acquisition campaigns
    • Referral programs
    • Trading competitions
    • Airdrops and incentive programs
    • Regional marketing focus (Asia, Europe, Global)

  3. Brand Building

    • Professional media coverage
    • Thought leadership content
    • Industry event participation
    • Regular ecosystem updates
    • Community-driven content

Community Strategy

  1. Engagement Programs

    • Ambassador program
    • Community rewards system
    • Regular community calls
    • Governance participation incentives
    • Multi-language support

  2. Education Initiatives

    • Tutorial series
    • Documentation in multiple languages
    • User guides and workshops
    • Technical deep dives
    • Community-created content rewards

  3. Community Development

    • Local community building
    • Regional moderators
    • Community-led events
    • Hackathons and contests
    • Regular feedback sessions

Partnership Strategy

  1. Strategic Alliances

    • Major DEX integrations
    • Cross-chain bridge partnerships
    • Wallet integrations
    • Infrastructure collaborations
    • CEX listings

  2. Ecosystem Expansion

    • DeFi protocol integrations
    • Layer 1/2 blockchain partnerships
    • Data provider partnerships
    • Security audit collaborations
    • Market maker relationships

  3. Business Development

    • Institution onboarding
    • B2B partnerships
    • Integration support
    • Joint marketing initiatives
    • Research collaborations

Backers

Venture Capital Partners

  • Sei Foundation
  • Manifold Ventures
  • Kronos Venture
  • DWF
  • Side door Ventures
  • Blockchain Founders Fund
  • Woo

Advisory Board

  • DeFi experts: BD lead from Gaunlet
  • Industry leaders: Andrea Chang
  • Marketing leaders: Leo Chiang

4. Industry

Industry Overview

DeFi Lending Market

  • Current TVL: ~$50B across major protocols
  • YoY Growth: 25-30%
  • Key Players: Aave, Compound, Morpho
  • Market Share Distribution: Top 3 control 65% of TVL
  • Innovation Cycles: 12-18 months

Cross-Chain Infrastructure

  • Total Bridges TVL: ~$15B
  • Monthly Transaction Volume: $8-10B
  • Growth Rate: 40% annually
  • Security Incidents: Major bridge hacks highlighting security needs
  • Technology Evolution: Moving towards modular solutions

Market Overview

Current State

  • Market Maturity: Early-to-mid stage
  • User Base: 5M+ active DeFi users
  • Protocol Revenue: $2B+ annually
  • Infrastructure Development: Rapidly evolving
  • Regulatory Environment: Increasing scrutiny

Market Dynamics

  • High competition in established chains
  • Emerging opportunities in L2s
  • Growing institutional interest
  • Increasing demand for cross-chain solutions
  • Focus on security and compliance

Potentials

  1. Consumer Adoption (Payments & Credit)
  • Market Size: $2.5T potential by 2025
  • Growth Rate: 40-50% YoY
  • Key Products:
    1. Crypto credit cards
    2. Payment solutions
  • Target Users: 1B+ globally
  1. AI-Powered DeFi
  • Market Potential: $50B+ by 2026
  • Key Features:
    1. Automated portfolio management
    2. Risk assessment
    3. Yield optimization
    4. Cross-chain operations
  • Growth Rate: 200% YoY
  1. Modular Lending Protocols
  • Current TVL: $50B
  • Growth Potential: 50x ($2.5T)
  • Key Drivers:
    1. Asset tokenization
    2. RWA integration
    3. Institutional adoption
    4. Technical innovation

5. Investment Overview

  • Term : SAFT
  • Investment Amount Proposed : US $300,000