# Problems

## Major issues

Inflation and unsustainable APRs affect the majority of the DeFi space. In the early stages, DeFi protocols attract users with incredibly high APRs, which as the number of stakers grows, starts to decrease, leading to a decline in interest level. These economic models lead to a steady drop in trading volume and high token inflation which cannot be covered. Token devaluation will increase at an extremely high rate.

Nowadays most of the DeFi ecosystems are unsustainable because of their inadequate revenue distribution, which means that even as interest increases they can only generate diminishing returns.

## Competitors

The demand increasing rapidly from consumers in the crypto market for developments with comprehensive economic models.

The above-mentioned problems have recently been addressed by a number of projects under the heading of real yield, which is still only marginally achieved.

After researching the options presented by competitors, we determined that we needed to build an economic model that **maximizes revenue flows**. That's completely separate from the previous continuous token emission and inflation methods because the Yieldz system does not include a **mint function**, it is focusing on **the most optimistic use** of the rewards generated by the protocol.

## Main Contents

In the following document, we will demonstrate the Yielzd ecosystem, which is based on real-yield solutions, to solve the following problems:\
&#x20; ▪️ Token inflation\
&#x20; ▪️ Decreasing and uncovered APRs\
&#x20; ▪️ Unstable revenue flows\
&#x20; ▪️ Unpredictable movements\
&#x20; ▪️ Selling pressure\
&#x20; ▪️ Sustainability


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://balloondao.gitbook.io/wpp/overview/problems.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
