Introducing yPRT: The Parrot Yield Token

The Parrot Yield Token is a new token design to incentivize long-term participation in the Parrot Protocol. Holding yPRT will entitle you to incentives within the Parrot ecosystem, compounding your yPRT holding. Furthermore, incentive programs will be issuing yPRT instead of PRT to encourage liquidity providers to participate over a longer time horizon.

TLDR:

  • Incentive programs will issue yPRT instead of PRT
  • yPRT can be converted to PRT over a vesting period of 1 year
  • Converting PRT to yPRT will entitle you to receive additional yPRT, thus compounding your PRT holdings

You can stake PRT to get yPRT, or convert yPRT back to PRT at :

Staking PRT locks your tokens, which requires vesting to unlock. Vesting unlocks tokens every second. Approximately 20% of the staked PRT tokens will be unlocked in the first month, and about 50% will be unlocked in three months.

The yPRT Staking Incentive Program

The yPRT staking incentives starts on November 4th UTC 00:00. For the next 30 days, 2,000,000 yPRT tokens per day will be distributed to yPRT holders, for a total of 60M yPRT tokens.

Hourly snapshots of yPRT wallet balances will be taken, and the yPRT rewards divided in proportion to the yPRT balances. Every Friday yPRT rewards will be airdropped to yPRT holders.

yPRT being vested will not receive yPRT staking incentives.

The PRT:PAI incentives will be terminated when the yPRT staking incentive program starts.

Tutorial for staking PRT is available here:

https://doc.parrot.fi/guide/yprt.html

The yPRT Vesting Curve

yPRT tokens are one-to-one convertible to PRT. You can always convert 1 yPRT to 1 PRT, and vice versa. By staking 1 PRT, you will get 1 yPRT. To convert back to PRT, deposit the yPRT in the vesting program. Once the vesting has started, yPRT tokens will be converted to PRT every second, and will become fully vested in 365 days.

The vesting schedule for yPRT follows an exponential decay curve with a half-life of 3 months. This means that every 3 months 50% of the vesting yPRT tokens remaining will be converted to PRT.

Here a table of the unlock % for the first 12 months:

At the end of 12 months, 93.75% will be unlocked. Theoretically the exponential decay curve never reaches 100% unlock. Therefore, the vesting vault has a special rule that allows you to unlock the entire remaining amount if the vesting duration of a vault has reached 1 year.

The amount of PRT unlocked per second is determined by the following formula:

Where i is the number of seconds elapsed since vesting had started.

Here’s a table of the expected unlock amounts per day per 100,000 yPRT vested:

https://docs.google.com/spreadsheets/d/1wWrTOlV-_HTYcAKFAEnkwmoTkXvZ3oWSPvYRHJGe-Nk/edit?usp=sharing

Why does yPRT vesting use an exponential decay curve instead of a linear vesting schedule? For two reasons:

  • Exponential decay unlocks more % of tokens earlier in the vesting schedule
  • Exponential decay makes it possible to add more yPRT tokens to an existing vesting vault at any time, yet all additional vesting amounts still follow the same vesting schedule

yPRT Incentive Programs

Parrot will start using yPRT for its incentive programs. The yPRT incentives will be rolled out for the following areas:

  • yPRT holders
  • PAI trading pairs
  • Parrot SOL liquid staking pool
  • PAI and pSOL stability pools, to help maintain the stable swap pegs
  • Deposits in +EARN vaults
  • And other new use cases as the team launches new features

Because yPRT allows long-term PRT holders to compound, and requires vesting over a longer period of time to realize its full value, the Parrot Yield Token is an important tool to create long-term alignment between the protocol liquidity providers and the PRT holders.

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