Modeling Assumptions

The APY projections utilize conservative growth assumptions validated against established market benchmarks. The DFY/USDC pool launches with $53,000 daily trading volume, scaling to $122,000 daily volume by year-end through consistent monthly growth. These figures represent moderate adoption compared to leading stable yield protocols like Ethena that processes approximately $52 million in daily DEX volume.

Key Modeling Parameters:

• Initial Daily Volume: $53,000

• Year-End Daily Volume: $122,000

• DFY+ Conversion Rate: 70% of DFY holders convert to yield-bearing positions

• Base Collateral Yield: Diversified returns from Avantgarde strategies

• Revenue Retention: APSS profits and conversion fees flow to overcollateralization

The 70% conversion assumption reflects typical yield-seeking behavior in stable asset markets, where the majority of holders prioritize returns over pure stability. This conservative estimate ensures projections remain achievable while allowing for upside if adoption exceeds expectations.