Moremoney to use Yield Yak to increase yields on collateral
Yield Yak is partnering with soon-to-launch native Avalanche project Moremoney to optimize collateral deposits which can be used to take out interest-free loans. This innovative concept opens up more ways than ever to increase your yields combining Yield Yak and Moremoney’s platforms.
For more information on Moremoney and it’s $MONEY and $MORE tokens and how it leverages Yield Yak, read on.
What is Moremoney?
Moremoney is a protocol for borrowing a stable coin against your liquidity pool tokens and other interest and non-interest bearing tokens, while still earning a healthy interest on the collateral. The protocol can convert most popular tokens e.g ETH, WBTC, USDT, AVAX into interest-bearing tokens (ibTKNs).
Simply put, with Moremoney users can keep their position, keep earning yield and still be able to extract liquid cash at 0% interest rate.
$MONEY is a USD-pegged stablecoin backed by interest bearing collaterals, present and future yield.
$MONEY is issued when a debt position is opened and it is destroyed when debt is paid back and collateral withdrawn.
At launch, there is a one-time 0.5% issuing fee.
$MORE is the governance and fee distribution token for Moremoney.
$MORE will be distributed to liquidity providers and early adopters.
How Moremoney leverages Yield Yak
Every collateral asset in Moremoney has yield generation strategies assigned to it. In the case of single-asset strategies which use Yield Yak, yield earned by the underlying collateral is auto-compounded which means that the value of collateral and its borrowing power increases over time.
“Moremoney is a truly exciting project that we’ve been impressed with as we’ve collaborated with them as they prepare for launch. Self-repaying loans using yield is a novel concept that simplifies the collateralized loan journey for users. Users simply deposit their collateral, take out a loan, and the rest is taken care of for them as the loan is either repaid or their collateral and associated debt ceiling increase. This opens up even more avenues for Avalanche DeFi users to maximize their yields.”
— Dylan, Comms at Yield Yak
For example, depositing AVAX may leverage the Yield Yak Benqi AVAX strategy. The underlying collateral grows over time due to compounding effects of Yield Yak which makes a stronger and more valuable collateral token that becomes more resistant to liquidations over time by effectively repaying itself.
“We’re excited to be bringing self-repaying loans and Ultrasound $MONEY to Avalanche, and partnering with Yield Yak to optimize yields on collateral was a no-brainer. We can’t wait to reveal our platform and begin engaging with the Avalanche DeFi community.”
— Dronoms, Co-Founder Moremoney
Collateral Migration with a single click — Moremoney will also offer users the ability to seamlessly move collateral from one Yield Yak strategy to another with a single click in order to further optimize their positions.
How It Works
Taking a loan is easy:
- Deposit Collateral and Borrow $MONEY
- Swap and use in other DeFi protocols
- Enjoy seeing your Yield Yak collateral grow!
The protocol will automatically deposit collateral into a yield bearing strategy and compound yield earned, increasing the collateral value and the users debt ceiling.
About Yield Yak
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.
Moremoney is a protocol for borrowing against your liquidity pool tokens and other interest and non-interest bearing tokens, while still earning a healthy Interest on the collateral. The protocol has the ability to convert most popular tokens e.g ETH, WBTC, USDT, AVAX into interest-bearing tokens (ibTKNs).