Mining is one of the most popular and fastest growing asset management strategies in DeFi. In short, mining is a strategy that generates revenue by placing idle assets into the DeFi protocol. The rate of return depends on the tokens involved, risk appetite and the effort put into switching strategies. Many of the annual returns from mining are in the double or even triple digits, making it very attractive to put capital into such strategies.
However, new money entering the space faces a steep learning curve. It is difficult for users to evaluate mining opportunities and exploit them effectively. In addition, high gas fees keep the best strategies out of reach of small users who cannot afford to pay thousands of dollars to execute revenue farming transactions.
A number of asset management protocols called “yield aggregators” have emerged to help users increase the yield of their assets with minimal effort. For example, Yearn has grown into a multi-billion dollar behemoth, suggesting that there is a market for a unified, one-stop solution where the protocol can take care of all aspects of revenue farming for any given token in exchange for a portion of the strategy’s profits.
yAxis is the latest addition to the burgeoning field of revenue aggregators. yAxis is dedicated to bringing DeFi gains to users through a seamless user-friendly interface that abstracts away much of the base costs and complexities of mining. Holders of the protocol’s governance token, YAXIS, act as fund managers – designing and recommending profitable revenue mining strategies that earn a 15% revenue fee without user intervention.
Revenue Aggregators are an emerging growth area for DeFi with lucrative revenues. For Yearn, Vesper, Badger and Harvest, their total locked-in value (TVL) has tripled this year to $6.1 billion.
Competition is fierce. Yearn has re-emerged as the dominant player in the space with 40% of the overall market, while newcomers Vesper and Badger have been growing rapidly, attracting around $2 billion between them. Badger focuses on seamless tokenized bitcoin use cases (it has also partnered with Yearn to develop its bitcoin machine gun pool). Vesper has been gaining market share by aggressively using its highly inflationary tokens to gain rewards.
What is yAxis?
Over the next year – divided into four quarterly “eras” – yAxis has big plans to bring high returns at low cost, without sacrificing DeFi, to all Seamless, frictionless revenue farming.
Beginning April 17, “Era 1” coincides with the launch of three key elements that are often considered critical to the success of revenue farming.
The strategy library, in this case for multi-strategy “Metavaults”
The governance token YAXIS, which can be pledged to receive rewards, voting rights and a percentage of the agreement fee
Liquidity pool on Uniswap, allowing for token purchases, which will provide incentives overall in the early stages
While still developing a seamless UX for newbies, yAxis has started in the right direction with a very easy to use interface. yAxis offers DeFi users double-click access to its v2 MetaVault, where they can store any of the top 3 stablecoins (DAI, USDC and/or USDT) in exchange for 3CRV tokens, which can then be deposited in exchange for MetaVault tokens (MVLT) ). MVLT tokens can then be pledged to earn YAXIS rewards. This all-in-one approach is superior to other protocols, which typically require the user to take multiple steps to set up.
Strategies are developed and approved through custom governance that involves YAXIS holders voting on the strategies. Once a new strategy is approved, the YAXIS holder can find the best yield aggregation strategy for the deposited funds. yAxis focuses only on single-asset machine gun pools, and they do not have the risk of unpredictable losses that can occur in a two-asset machine gun pool strategy.
While yAxis’ broad approach to revenue aggregation is still in its early stages, its TVL, backed by YAXIS, has taken off since April 18, surpassing $200 million after just 12 days.
In implementing its first machine-gun pool strategy, yAxis joined a very crowded marketplace designed around depositing stablecoins into Curve to generate revenue from transaction fees and CRV governance token rewards, which totaled between 11.1% and 85.3% of APY.
Metavault manages the pledge, harvest and exchange of Curve and other reward tokens, as well as the reinvestment of proceeds (reducing agreement fees).
In late April, Metavault added the Yearn v2 DAI strategy, which offers lightning credits through major DeFi lenders, including Aave and Compound.
While developing a new v2 strategy and long-term plan, yAxis offered some aggressive returns in the revenue aggregator space: 87% of this 78.20% APY was paid in full through the yAxis governance token YAXIS.
Such a protocol is indeed complex, but two security audits by Quanstamp and Haechi and a large vulnerability bounty may reassure users.
What sets yAxis apart from its competitors is that it was created by an anonymous team. Yearn, Vesper and Badger at Cronje, Jeff Garzik and Chris Spadafora are extremely charismatic leaders and popular leaders respectively. This makes the development of the yAxis community imperative, and indeed necessary. The first step in building an incentive group of strategists and users was to offer token rewards to the earliest supporters.
YAX Conversion to YAXIS
Prior to the launch of yAxis v2, the founders realized that YAX tokens with a supply cap – the original yAxis protocol tokens – limited yAxis’ ability to offer rewards to attract new users. Since April 17, one million YAX tokens can be exchanged for new YAXIS tokens. The process is almost complete, with only 168,000 tokens needing to be exchanged. The YAXIS token uses the ERC-677 standard, which is backward compatible with ERC-20, but also allows for both transfer and call functionality in a single transaction. Since no pre-exchange approval is required, the cost of entering and exiting a transaction is halved, saving on gas fees, which is another boon for smaller investors.
The long-term goal envisioned for running in yAxis v3 is that the protocol approximates a community-run hedge fund. Currently, YAXIS holders can suggest and vote on strategies. The voting system is quadratic to limit the power of large holders.
Most new protocols subsidize the liquidity of AMMs that trade the protocol’s tokens for a short period of time after launch. yAxis has incentivized such LPs on Uniswap. As of May 1, the token pair pool has 146,245 YAXIS tokens with 2,159 ETH, providing a source of YAXIS for new entrants and for token purchases that require a revenue fee to be paid to YAXIS pledgers at harvest.
On April 17, the exchange of YAX for YAXIS marked the beginning of the first era. yAxis plans to offer a BTC bridge at the start of the second era on July 17 and launch the commissioned multi-strategy Canonical machine-gun pool.
The Canonical Machine Gun Pool will add ETH, BTC and LINK strategies, expanding the entire addressable market from stablecoin holders to the three largest cryptocurrencies. Bitcoin Bridge will allow a seamless transition from local BTC to tokenized BTC that will be stored in the yAxis Machine Gun Pool, resulting in higher returns than those currently offered by BlockFi or Celsius.
A fiat currency channel is also planned, which will ease the friction in the token acquisition process, especially for new entrants. There is no need to acquire a small amount of stable coins from other protocols, LINK, tokenized BTC or ETH.
New revenue aggregators new protocols often need to entice mining farmers away from other protocols by offering high incremental rewards in their own tokens. Alpha Homora’s DAI stablecoin machine gun pool offers two-thirds of its ALPHA token’s 20% yield, while Vesper’s VSP token rewards account for three-quarters of the advertised APY. Rewards such as these have contributed to the rapid growth of both protocols as well as Badger.
The original protocol token, YAX, had a fixed supply and was launched fairly to the community last year. However, yAxis quickly learned that token rewards are an extremely effective way to attract new users. The yAxis team also hopes to use the tokens to bring VCs to the platform for advocacy, coverage and validation. The tokens will also be used to incentivize community activity.
Starting with 1 million YAXIS tokens generated by the YAX exchange, the supply of tokens will increase to 11 million over the course of a year (four eras). The vast majority of tokens will be made available to the user and administrator community. Currently, over 1 million tokens remain unclaimed as certain YAX tokens remain unclaimed, and the reward season called The Great Harvest has already begun.
Uses of YAXIS tokens will include the following in the following ways.
Incentivizing pledging of tokens for governance and strategy development purposes
Incentivizing liquidity providers on Uniswap
Boosting APY to attract early adopters to the new protocol and grow TVL
Compensating strategists and community participants
The YAXIS distribution plan for Times1 is as follows.
The remaining 8,000,000 tokens are available for the remaining 3 epochs.
A total of 11,000,000 tokens are planned to be allocated over the 4 epochs ending April 17, 2022, as follows
1,000,000 (9.1%): Initial redemption with YAX holders
4,000,000 (36.3%): Pledgor and liquidity provider rewards
4,000,000 (36.3%): Machine gun pool depositor’s bonus
800,000 (7.3%): To be determined
500,000 (4.5%): Competition program
400,000 (3.6%): Development
300,000 (2.7%): Team
Currently, YAXIS awards are distributed as follows.
Revenue performance fees will be converted to YAXIS and distributed to pledgers on a regular basis. This has a virtuous cycle that has the potential to drive value into YAXIS tokens. The higher the TVL, the more tokens allocated to repo multi-signature addresses and the less reward tokens paid to Metavault depositors per unit of fee revenue.
The Future of yAxis
yAxis has managed to achieve rapid TVL growth in a short period of time based on a stablecoin strategy (backed by access to a large number of YAXIS token rewards). However, the ultimate goal is much more than just developing a multi-strategy machine gun pool. The Time 2 Canonical machine gun pool as well as the BTC and fiat currency channels are dedicated to targeting the large number of crypto users who are not yet using DeFi, especially institutions. The vision of the project’s founders is to create a “decentralized BlockFi…” for retail and professional investors.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/learn-about-the-revenue-aggregation-protocol-yaxis-in-one-article-making-it-easy-for-more-people-to-enjoy-the-benefits-of-mining/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.