This document compiles some of the frequently asked questions related to the YETI Chain. For more details, check out this documentation.
Do you have two tokens? But LUNA also did, and it collapsed!
If some single-token system goes bankrupt, it doesn't mean all single-token mechanics are doomed. We have fundamentally different mechanics from LUNA, self-sufficient and not directly tied to the real world. Thus, it cannot be broken by external manipulation, as it happened with LUNA.
How will I be able to deposit or withdraw money from YETI?
In the beginning, a bridge with Ethereum will be set up to interact with the outside world, allowing users to use wrapped ETH in YETI. It will also be possible to withdraw capital from the YETI network using this bridge.
Bridges to other popular blockchains will be created in the future. If necessary, it will be possible to make a bridge with reverse logic, where YETS or YET is withdrawn from YETI, and in another blockchain, the user receives wrapped YETS or YET tokens.
What happens if no one puts YET in the Grinder?
That won't happen. At least, the YETI Team will put a single YET in the Grinder queue at a price sufficient to issue a billion YETSs. And we have no doubt that there will be many such overpriced orders.
YET will not be burned when trading on the exchanges. Will it break the system?
There will be DEX in YETI, so it will be possible to trade YET for YETS outside the Grinder.
If the price of YET on DEX drops much relative to prices in the Grinder queue, it will open up an arbitrage opportunity. Anyone can buy a cheap YET on the exchange and put it into the Grinder at a much higher price.
If the price on the exchange exceeds the price in the Grinder, it would be more profitable to cancel the Grinder's order in the queue and sell the YET on the market.
Thus, the price on the exchange and in the Grinder queue will strongly correlate. But the burn price in the Grinder will likely be slightly higher than the exchange rate since it will take some time to process the order via the Grinder. In other words, if there is a possibility to swap YET on the DEX immediately or through Grinder, say, within a week, then, obviously, the long wait must be somehow compensated.
What happens if YET collapses?
As has already been said, the prices in the Grinder queue and on the exchange correlate. If the price of YET falls (relative to YETS), then the Grinder will start to consume (and burn) significantly more YET. Therefore, at moments of deep YET drawdowns, it will be burned at an accelerated pace.
Where will the first YETS tokens come from?
The initial YETS tokens must appear somehow to launch the system. Otherwise, it will be impossible to make any transactions. For that, YETI will have a rule (both initially and in the future) that each new validator will receive 100 YETS as a gift.
Will YET be distributed evenly?
YET will be distributed among validators as a reward. Since we plan to launch a network with about a thousand initial validators, and about 10% of the total YET supply will be distributed among them in the first year, there should be no large YET holders.
Well, except for the YETI Team, which needs a lot of tokens to create bridges, provide liquidity for centralized exchanges, offer grants for developers, etc. The additional reward the Team will receive as Routers' rewards by operating the network layer.