Yieldly is a brand new Defi project launched on the Algorand network. For now it offers no-loss lotteries and staking of its native token, YLDY, however there are many more things planned for the future (you can find the roadmap on the official site: https://yieldly.finance/). Compared to Ethereum, where you need assets worth at least a couple of thousands of dollars to partcipate in Defi in order to justify the high transaction fees, the Algorand network is near feeless (and transactions are pretty much instant), each transaction costs 0.001 ALGO (around $0.001). That means that even people with very little ALGO can participate.
The available products are:
1. No-loss lotteries - you can stake your ALGO in exchange for tickets. 85% of rewards generated by all the staked ALGO are then paid out to a lucky winner every week. Each ticket holder also earns YLDY tokens at around 15% APY, paid out weekly as well. Keep in mind that the chance to win is miniscule unless you have a lot (multiple thousands, possibly millions) of ALGO staked so don't count on winning.
2. YLDY Staking - you can stake your YLDY tokens (for now they can't be bought, they could've been obtained in the IDO or can be earned by staking ALGO in the lottery) to get more YLDY. In addition to that, 15% of the rewards generated by ALGO staked in the lottery are distributed to all the YLDY stakers. The Current APY is around 220%.
In order to participate in the lottery you need to do the following (note: from other users' experience it doesn't work on mobile just yet so use the desktop app):
1. Use My Algo wallet. As this point no other wallets are supported. I'd recommend creating a new wallet in My Algo and transferring some funds from your main one. Once the funds are in, you can add the YLDY ASA to the wallet (mind the check mark, it confirms that it's an approved asset):
Important note: you should not import your Ledger account as you won't be able to sign the required transactions. The device doesn't support multi signature transactions (yet?) which means that you will not be able to use Yieldly.
2. Go to the Yieldly app, here you will have to connect your wallet. Click the button in the top right corner, unlock your My Algo wallet, connect to the app.
3. Once connected, click on the 'Get Tickets' button under 'No-Loss Lottery'. Since you are using the site for the first time opt-in to Yieldly (if you haven't already done that, see the 1st point) and opt-in to smart contracts. The total cost is 0.004 ALGO (0.001 to opt-in to YLDY and 0.003 to opt-in to smart contracts). This is a one-time procedure, if you use the same wallet to stake more ALGO you won't have to repeat this step. Once this is done a window will appear, here you can put in how many ALGOs you want to stake, the more you stake the higher your chance to win is.
Note: If you choose to stake 100% of your ALGO you might see an error, the actual max amount you can stake is visible at the bottom of the page in the second box ('x of y Available', where x is the actual max amount you can stake):
4. After clicking Next you will be prompted to sign a transaction, the total cost is 0.003 ALGO
5. Congratulations, you are now eligible for the lottery!
Each week you have a chance to win the grand prize: 85% of rewards accrued on the staked ALGO. You also get a guaranteed reward paid out in YLDY. It is also distributed once a week and can be then claimed. It's important to note that your staked ALGO can be withdrawn whenever you want.
The YLDY tokens were sold for $0.002 during the IDO, as of now there aren't any functional DEXes on the Algorand network whch makes it difficult to say how much they are really worth, this will change once Algodex is launched. If the Yieldly project takes off, the tokens are sure to go up in price and hopefully yield a decent ROI. The Algorand network is quickly growing and there are more exciting things coming!
If you are looking to start earning interest on your other crypto, even on the tokens that are not stakeable, I can recommend Celsius Network. It offers high interest rates (8.88% APY on stablecoins, 5.05% APY on Ether), weekly payouts, it's transparent, safe and they offer free withdrawals. You can earn $40 in Bitcoin for free on your first transfer of $400 or more in many different cryptos when you use my referral code when signing up: 1083379578 or simply click on the link: https://celsiusnetwork.app.link/1083379578. Find out more about Celsius and other similar platforms in the second part of my article.