October 11, 2023

PsyFi is thrilled to announce the commencement of a new era for the community — the launch of 'PSY Reloaded,' a total transformation of PSY’s tokenomics.

Introducing PSY Reloaded

PSY Reloaded represents a complete transformation of the PSY Token and its value accrual mechanisms. Fundamentally, PSY Reloaded is composed of three distinct phases:

Reloaded Phase I - PSY Accelerated Vesting


On-chain vote to unlocked all PSY vesting tokens on Realms has passed. Prior investors now have ability to exit their token position and ensuring that only the most committed and steadfast parties continue to be part of our community. Accelerating vesting ensures that no token overhang exists from initial investors.

Reloaded Phase II - Launch PSY Staking Program

Status: On Track for Q3 2023.

The foundation of the PSY Reloaded strategy is the PSY Staking program where PSY holders can earn rewards from protocol activity. The Program allows wallets to lockup PSY for a variable duration. The longer the duration, the more weight (for voting and rewards) the wallet will receive. Rewards can be in the form of a single token, or multiple tokens. PSY Single Sided Staking will plug into SPL governance so users no longer have to decide between earning rewards or participating governance.

Reloaded Phase III - Deploying DeMUX, an Automated Protocol Revenue Sharing/Splitting Engine

Status: On Track for Q3 2023

DeMUX is the engine that fuels the PSY Reloaded flywheel. DeMUX can be configured via governance to channel fees autonomously from any number of programs into PSY buybacks or directly to PSY stakers. Demux can be setup by PSY community vote to divide PsyFi protocol fees to three token streams:

  • PSY-USDC Protocol Owned Liquidity - A portion of all fee streams will be used to buy PSY and USDC to deposit to Armada’s concentrated liquidity management vautlts, increasing PSY onchain liquidity.
  • PSY Stakers Fee Distribution - Another portion of the fee stream will be sent directly to PSY stakers.
  • PsyFi Treasury - Lastly a small portion of fees will be sent to PSY’s treasury accounts on realms.

Why PSY Reloaded ?

Since its inception as a DEX and one of the inaugural winners of the Solana hackathons in 2021, PsyFi has evolved into a burgeoning ecosystem of products, including:

  • PsyVaults
  • PsyLend
  • SDX
  • Armada

Each of these products has distinct fee structures and fee capture methods. This expanding ecosystem necessitated PSY Reloaded to set PSY up with no token overhang and to create a flywheel that ensures PSY stakers accrue rewards from the entire product portfolio.

The PSY Reloaded flywheel was needed to ensure that every PSY token holder had a compelling reason to utilize one of the platforms listed above, rather than an existing alternative. Now PSY holders can stake their PSY, use PSY products to boost protocol usage, and then receive rewards for participating.

Why Should You Care?

PsyFi is a pioneer among Solana protocols, implementing accelerated vesting alongside a novel token design.

We are excited about the future of PsyFi DAO and are committed to ushering in DeFi 2.0 alongside our community.

Please feel free to reach out with any questions via our Discord or Twitter. We can’t wait to kick off this new chapter of Solana DeFi together with you all.