Yield Generation Mechanism

Yield Generation Mechanism

Dollar Infinite generates yields through a dual-engine system that combines stable passive income with dynamic algorithmic trading — all fully automated and non-custodial on the Binance Smart Chain (BSC).

Two Sources of Yield

1. Liquidity Pool & Lending Strategy (~70% of funds) Funds are deployed into carefully selected, audited DeFi protocols to earn reliable, low-volatility returns.

   Selected Protocols & Allocation Example:

   Platform	Pair / Strategy	Expected APY	Risk Level	Allocation %
   PancakeSwap	USDT/BUSD LP	5–8%	Low	~30%
   Biswap	USDT/USDC LP	4–7%	Low	~25%
   ApeSwap	USDT/DAI LP	6–9%	Low	~15%
   Venus/Alpaca	Stablecoin lending	5–12%	Low	Variable

   How it works:

   • Provide liquidity to stable pairs → earn swap fees

   • Lend USDT → earn borrowing interest

   • Fees and interest are auto-harvested and reinvested or distributed

   • Focus on audited protocols and stablecoin pairs to minimize impermanent loss

2. AI Trading Bot Strategy (~25% of funds) Proprietary AI algorithms execute trades 24/7 to capture additional profits.

   Main Trading Strategies:

   • DEX Arbitrage — Exploits price differences across exchanges (success rate ~99.8%)

   • Market Making — Provides liquidity and captures bid-ask spreads (profit per trade 0.3–2%)

   • Trend Following — Momentum-based entries/exits using indicators

   • Mean Reversion — Contrarian trades when price deviates from average

   Performance Highlights:

   • Historical win rate: 99.7%

   • Total operations: 26,000+

   • Average profit per trade: ~1.2%

   • Daily trades: 50–200 (when conditions met)

   • Max drawdown: <5%

Combined Yield Calculation

The blended APY comes from both sources:

Base Calculation Example (simplified):

• Liquidity/Lending (70% allocation): ~7.5% APY

• AI Bot (25% allocation): ~70% APY (high-variance)

• Reserve (5%): 0%

Effective base APY ≈ (0.70 × 7.5%) + (0.25 × 70%) + (0.05 × 0%) = 22.75%

With Lock Period Multipliers:

• 1 Day: 22.75% × 1.0 = 22.75% annualized

• 5 Days: 22.75% × 1.2 = 27.3%

• 10 Days: 22.75% × 1.5 = 34.1%

• 20 Days: 22.75% × 2.0 = 45.5%

Important: These are illustrative figures. Actual returns vary with market conditions, bot performance, and protocol rates. No guarantees.

Risk Management in Yield Generation

Risk Type	Mitigation Strategy
Impermanent Loss	Stablecoin-only pairs
Trading Losses	Strict parameters (max slippage 0.5%, min profit threshold)
Smart Contract Risk	Audited code, reentrancy guards, pausable
Liquidity Risk	Reserve buffer for withdrawals
Oracle / DEX Failure	Diversification across protocols

All yield-generating activities are on-chain and verifiable via BSCScan. The protocol is designed to prioritize capital preservation while seeking optimized returns.

→ Next: Reward Distribution

Last Updated: February 2026 For current performance and real-time stats, check the official dashboard at dollarinfinite.com