Perpetual Yield

Recursive Royalty Tokens

Executive Summary

Recursive royalty tokens that propagate revenue shares through unlimited chain depth. When content is remixed, sampled, or derivative works created, the original creator's royalty token automatically extends to the new work. DUAL's Logic Layer calculates cascading royalty splits in real-time.

Token Data Schema

What this token holds — every field is specific to Perpetual Yield:

{
  "immutable": {
    "yield_pool_id": "UUID",
    "underlying_asset": "address",
    "inception_timestamp": "ISO8601"
  },
  "mutable": {
    "tvl": "uint256",
    "apy_rate": "float",
    "last_compound": "timestamp"
  },
  "compliance": {
    "sec_registered": "bool",
    "audit_status": "enum"
  }
}

User Journey

Step 1: Pool Manager

Creates perpetual yield pool with underlying asset and inception timestamp

Token: yield_pool_id created, inception_timestamp immutable

Step 2: Liquidity Provider

Deposits underlying asset (stablecoin, ETH) into pool for yield

Token: tvl incremented, share_tokens minted

Step 3: Yield Oracle

Computes real-time APY based on pool performance and market rates

Token: apy_rate updated hourly, last_compound timestamp set

Step 4: Compounding Engine

Auto-compounds accrued yield back into pool daily

Token: tvl increased, last_compound updated

Step 5: Liquidity Provider

Withdraws shares; receives principal + compounded yield pro-rata

Token: tvl decremented, share_tokens burned, yield_payout transferred

Token Lifecycle

State machine transitions:

CreatedActive EarningDerivative CreatedCascade CalculatedDistributedArchived

Why Not Just a Database?

ApproachPortabilityMutable StateCross-OrgCompliance
Traditional Bond Bond market Issuer-driven modifications Centralized clearing SEC-regulated
DeFi Liquidity Pool DEX-native Fee updates; slippage risk Smart contract only No regulatory contact
Structured Note Bank product Issuer discretion Via investment bank Prospectus-based
DUAL Perpetual Yield Wallet-native + DeFi On-chain APY updates Multi-collateral support SEC + DeFi compatible

Market Opportunity

TAM
$100B+
SAM
$10B
SOM
$300M

Logic Layer calculates recursive royalty splits through unlimited depth; Event Bus tracks derivative creation events; mutable state maintains royalty waterfall; Compliance Layer enforces copyright and licensing rules.

Business Model & Unit Economics

  • Pool Creation: $5,000 setup fee for initiating perpetual yield pool
  • Management Fee: 0.5% annualized on total pool value (TVL)
  • Performance Fee: 10% of yield above baseline APY (e.g., if baseline is 5%, capture 10% of upside)
  • Liquidity Provision: Integrated DEX swap fees (0.05%-0.3%) on deposits/withdrawals
Unit Economics

Per-pool: $5K setup + 0.5% AUM + 10% performance. Avg. $10M pool: $50K/year base + $10K-50K performance = $60-100K/year. COGS: $10K/year. Gross margin: 80-90%.

5-Year Projections

YearARRCustomersNotes
Y1 $300K 5 pools Stablecoin yield pilot
Y2 $2M 30 pools, $50M TVL Multi-collateral support
Y3 $5M 100 pools, $200M TVL Cross-chain yield aggregation
Y4 $10M 250 pools, $500M TVL Institutional liquidity supply
Y5 $18M 500 pools, $1B+ TVL Industry yield standard

Competitive Positioning

CompetitorWeaknessDUAL Advantage
Aave (Lending Protocol) Variable APY; liquidation risk; limited perpetual yield Perpetual yield pools + zero liquidation risk
Curve Stableswap Trading-focused; limited yield farm; impermanent loss Pure perpetual yield; no IL; mutable APY
Traditional Bond (Fixed Income) Illiquid; high minimums; limited retail access Tokenized + daily liquidity + accessible to all

Go-to-Market

Phase 1: Stablecoin Yield Pilot (Months 1-6)

Launch 5 pools with USDC and DAI. Target: $50M TVL, $300K ARR.

Phase 2: Multi-Collateral Expansion (Months 6-18)

Support ETH, BTC, and real-world assets (RWA). Institutional liquidity supply. Target: $200M TVL, $2M ARR.

Phase 3: Industry Liquidity Standard (Year 2+)

Cross-chain yield aggregation. Institutional adoption. $1B+ TVL, $18M ARR.

90-Day MVP

  • Pool creation factory: Deposit asset + set baseline APY
  • Liquidity provider interface: Deposit + withdrawal UI
  • Compounding engine: Daily auto-compound of accrued yield
  • APY calculation oracle: Real-time yield rate updates
  • Performance fee distribution: 10% of upside to pool manager
  • DEX integration: Multi-pool aggregation on Uniswap/Curve

Risk Factors

Smart Contract Risk

Compounding engine or yield oracle may have bugs causing fund loss.

Mitigation: Independent code audit; formal verification where possible; insurance for bug bounties; gradual TVL ramp.

Yield Oracle Manipulation

Oracle provider may be bribed or coerced to report false APY.

Mitigation: Multiple oracle providers; on-chain voting override; yieldreporting insurance.

Underlying Collateral Risk

If underlying asset (USDC, ETH) loses value, pool TVL may collapse.

Mitigation: Support multiple collateral types; dynamic rebalancing; collateral insurance partnerships.

Regulatory Classification

Perpetual yield pool may be classified as unregistered security.

Mitigation: Legal opinion pre-launch; SEC no-action letter request; yield mechanism structuring.

VC Pack Documents

Get Started with AI

Prerequisites: Complete the DUAL Quick Start Guide to set up your environment and API keys before building this concept.

# Build Perpetual Yield Pools on DUAL

You are building a native perpetual yield pooling system. Start here:

1. Design the pool schema: immutable yield_pool_id, underlying_asset, inception_timestamp; mutable tvl, apy_rate, last_compound; compliance sec_registered, audit_status.

2. Create the pool creation factory:
   - Pool manager specifies underlying collateral (USDC, DAI, ETH)
   - Set initial baseline APY estimate
   - Mint pool share tokens
   - Deploy on DUAL network

3. Build liquidity provider interface:
   - Users deposit underlying asset
   - Receive pool share tokens prorata
   - Track TVL growth
   - Enable withdrawal anytime

4. Implement compounding engine:
   - Daily: Accrue yield based on current apy_rate
   - Auto-compound by reinvesting yields into pool
   - Update last_compound timestamp
   - TVL grows with compounding

5. Create APY oracle:
   - Real-time yield rate calculation from underlying protocols (Aave, Curve, etc.)
   - Update apy_rate hourly
   - Prevent oracle manipulation via multi-source

6. Add performance fees:
   - Pool manager earns 10% of upside above baseline APY
   - Monthly settlement of performance fees
   - Transparent fee calculation

Start by deploying a USDC perpetual yield pool and building the compounding engine.