As Yield Yak’s new yield-bearing liquid staking token yyAVAX is getting closer to launch, they can now share specific launch mechanics, notably a 100K yyAVAX capped Opening Ceremony and rewards for LP providers.
yyAVAX differentiates itself from the competition with better yield that’s easier to realize for users. Read on for more details.
- 100K yyAVAX will be available to be minted for AVAX starting at a 1:1 ratio
- yyAVAX holders will immediately start earning yield generated from the Avalanche P-Chain.
- Users can provide liquidity for yyAVAX by pairing it with AVAX in its native liquidity pool which serves as liquidity to allow for instant withdrawals.
- LP providers can stake their LP tokens on Yield Yak to receive 5% of yyAVAX’s yield
- yyAVAX will be available to trade using Yak Swap (warning: trade with caution once the cap is met vs simply waiting to mint until after the cap is raised)
The 100,000 yyAVAX can be minted starting at a 1:1 ratio with AVAX. Users will receive yyAVAX, which will immediately start accruing value vs AVAX.
Yield is generated from staking rewards on the Avalanche P-Chain with fee-savings and and added revenues thanks to opportunities from running validators.
During the opening ceremony, yyAVAX will be available on a secondary market (i.e. can be swapped for instead of minting). They plan to raise the cap over time, so keep this in mind if you choose to pay more than the mint price.
The initial cap is in place as an extra measure of caution to ensure that the liquid staking and yield-generating infrastructure built with their partners Geode Finance and Eden Network is working as intended. They outlined their partnership with Geode and Eden recently on their blog.
yyAVAX will be constantly accruing value to AVAX, and Yield Yak and its partners will be doing everything they can to bring the most yield possible to yyAVAX holders.
On top of unlocking yield for AVAX stakers securing the Avalanche network on the P-Chain, yyAVAX will receive yield earned by Validator yield-generating opportunities such as supporting Avalanche Subnets. The Validator yields will be generated by the Eden Network of Avalanche Validators. Eden Network receives 5% of yyAVAX yields in exchange for providing these services (running validator network, supporting subnets, returning additional yield generated to yyAVAX holders).
You can read more about Eden Network’s strategy to generate yield on Avalanche on their blog here.
Many liquid staking tokens require that you wait a 15+ day period to move from the liquid staking derivative back into native AVAX. Alternatively you could use an AMM and potentially suffer serious slippage and swap fees which eat into any gains and benefits of holding the derivative token.
It is currently an under-reported problem that many users purchase and sell liquid staking tokens and unintentionally eat up all of their yield (and then some) when moving in and out of the token.
- Imagine a Typical Liquid Staking Token with a daily yield around 0.02%
- Swap costs 0.3%, plus slippage
- Lose 15+ days of yield per trade
With yyAVAX, the team expects losing closer to 2 days of yield per trade via its dynamic withdrawal pool. The dynamic withdrawal pool allows users to redeem yyAVAX for AVAX at minimal slippage. At launch, using this pool (which can be accessed via Yak Swap) will prevent users from being hurt by swap fees and slippage negating their gains. And no need to wait 15 days if you wish to return to native AVAX.
While additional utility for yyAVAX will be added after the 100K yyAVAX cap is lifted, users who make it into the Opening Ceremony will be able to earn rewards by providing liquidity in the dynamic withdrawal pool which will receive 5% of yyAVAX yield. Yield on top of yield.
Yield Yak receives 5% of generated yield from yyAVAX. At launch, this 5% will be put to work to bootstrap liquidity in the dynamic withdrawal pool. In the future it may be that this 5% is best served elsewhere, in which case some could be repurposed to other areas, such as to YAK stakers. YAK also holds governance rights to yyAVAX.
yyAVAX’s smart contracts, created by their partners Geode Finance, have been audited by Omniscia and reviewed internally by Ava Labs engineers.
They will soon reveal yyAVAX’s Opening Ceremony launch date as well as specifics on how to LP yyAVAX and earn rewards once launched. Join their Community Channels to keep up to date.
Yield Yak makes numbers go up. Ape into new autocompounder farms with quick releases and high yields. Swap on Yak for the best prices on trades with zero aggregator fees. Sit back and just earn, including big APYs on stablecoin farms.
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Geode Finance provides DAOs like Yield Yak with the ability to provide a liquid staking solution to their users. By providing DAOs with the infrastructure, their own staking token derivative and exit liquidity, Geode are able to open up the opportunity for vastly improved yields and capital efficiency for users across the whole of DeFi.
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Eden Network is a user-focused blockchain infrastructure provider. On Ethereum they operate the Eden Rocket RPC; a private network that provides DEX traders with transaction protection, and NFT minters with transaction priority.
With their expansion to Proof-of-Stake blockchains, Eden Network also provides key liquid staking and validation infrastructure to optimize yield generation, increase TVL and drive network growth.
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