LGPSY
Earn Rental Income
LGypsy is a yield-bearing vault, which in DeFi are assets that provide some form of added gain on top of ordinary asset-holding. In the case of Gypsy, LGypsy is staked Gypsy tokens that earn rental income & home appreciation. Rental income is paid in the form of more Gypsy tokens. Therefore, every month LGypsy holders are earning compounding real estate equity which earns further rental income.
ERC-4626 Standard
ERC-4626 is a standard to optimize and unify the technical parameters of yield-bearing vaults. It provides a standard API for tokenized yield-bearing vaults that represent shares of a single underlying ERC-20 token. ERC-4626 also outlines an optional extension for tokenized vaults utilizing ERC-20, offering basic functionality for depositing, withdrawing tokens and reading balances.
Dividend payout
On the first of every month, Gypsy will send its dividend payment after expenses. Investors are sent 90% of the profits and Gypsy earns 10%. Gypsy is paid in USDG, while the Investors are paid in GPSY. In order to pay investors with Gypsy, the treasury mints new GPSY at the backing price of Gypsy and uses that Gypsy to send to investors.
Utility
Self-Repaying Loans
In DEFI there are decentralized borrowing protocols that allow you to deposit a yield-bearing token as collateral and borrow stablecoins against the value of that collateral.
Examples:
MakerDAO's and their DAI Stablecoin
Abracadabra and their MIM Stablecoin
These tokens can then be exchanged for fiat-stablecoins and off-ramped through centralized exchanges. These loans often have low-interest rates (1-2%) while the yield of Gypsy will likely be higher. Therefore these loans will pay back themselves. This makes it an optimal asset to use as collateral for yield farming.
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