# Dual - Token Model

### How the system works?

Yieldbase is using a new type of solution to provide the ETH + USDT rewards for the staking pool. To eliminate the token minting, we have implemented several ways to monetise the staking pool:

<figure><img src="https://3664289310-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZsY0sB3SflQc3sWVLNod%2Fuploads%2FHGJ0yH6fuRUlkg3lzWMu%2Fyieldbase%20(3).png?alt=media&#x26;token=720191d3-964c-49f5-9bc6-7fe7494696be" alt=""><figcaption></figcaption></figure>

1. **Transaction Fees**: On every sell transaction, there is a 2.5% fee and the contract split into ETH and USDT tokens which is automatically added as rewards in the staking pool. There will also be a 2% fee on purchases for the first 48 hours, which will automatically be added to the staking pool for the stakers. The purchase fees will be reduced after the expiry date.
2. **Early Unstaking Fee** solution for the Farm, which means a 10% fee for if you want to unstake within 6 weeks period. This mechanism ensure the price of the YB and allow stakers to enjoy the high APYs without getting sceptic, because if someone early unstake their tokens, helps stakers with even higher APYs.
3. Our **APY boosting mechanism** is a cutting-edge feature that utilizes the power of smart contracts and decentralized finance (DeFi) to provide YB token holders with the opportunity to increase their returns on investment. The mechanism works by allowing YB token holders to lock their tokens in a common pool. When enough tokens are locked in the pool, the smart contract is triggered, and the APY for all investors is increased by 15%.

**How the early unstaking  fees are divided:**

* 6% to the reward pool (...+...)
* 2% Auto-Burn
* 2% Marketing


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