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
Creates perpetual yield pool with underlying asset and inception timestamp
Token: yield_pool_id created, inception_timestamp immutable
Deposits underlying asset (stablecoin, ETH) into pool for yield
Token: tvl incremented, share_tokens minted
Computes real-time APY based on pool performance and market rates
Token: apy_rate updated hourly, last_compound timestamp set
Auto-compounds accrued yield back into pool daily
Token: tvl increased, last_compound updated
Withdraws shares; receives principal + compounded yield pro-rata
Token: tvl decremented, share_tokens burned, yield_payout transferred
Token Lifecycle
State machine transitions:
Why Not Just a Database?
| Approach | Portability | Mutable State | Cross-Org | Compliance |
|---|---|---|---|---|
| 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
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
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
| Year | ARR | Customers | Notes |
|---|---|---|---|
| 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
| Competitor | Weakness | DUAL 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
Launch 5 pools with USDC and DAI. Target: $50M TVL, $300K ARR.
Support ETH, BTC, and real-world assets (RWA). Institutional liquidity supply. Target: $200M TVL, $2M ARR.
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
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.
Oracle provider may be bribed or coerced to report false APY.
Mitigation: Multiple oracle providers; on-chain voting override; yieldreporting insurance.
If underlying asset (USDC, ETH) loses value, pool TVL may collapse.
Mitigation: Support multiple collateral types; dynamic rebalancing; collateral insurance partnerships.
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
Complete pre-seed investment package:
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.