Yield Yak introduces bonds with Olympus Pro

Yield Yak x Olympus Pro

Yield Yak has partnered with Olympus Pro as part of the Avalanche Cohort 1. You can now purchase discounted YAK in exchange for YAK/AVAX LP tokens on yieldyak.com/bonds

What Is Olympus Pro?

Olympus Pro is a service for protocols looking to own more of their own liquidity. Through the bonding service, these protocols accumulate the crucial infrastructural liquidity that they generally service via liquidity mining. Instead of renting or ‘paying’ for that liquidity, they simply purchase it, turning a value-draining perpetual expense into revenue-producing assets that facilitate the functionality of the rest of the platform.

How does bonding work?

How Yak Bonds Work

All bonding can be done directly on the yieldyak.com/bonds site. From there, you can deposit your LP token (only if the discount is beneficial to you), as well as claim your YAK rewards. You also have the option to do this directly on the Olympus Pro site.

Why Yield Yak is offering bonds

We believe this to be a benefit both for users and Yield Yak. With bonds, a user can exchange their YAK/AVAX LP position with the Yield Yak Treasury for discounted YAK.

The treasury immediately owns on the LP position, and the user receives YAK over the course of 7 days with continuous, linear vesting. The benefit to a user varies with the discount. If the discount price outweighs the rewards from LP’ing, then purchasing a bond is beneficial.

Through this process, Yield Yak takes on more of their own liquidity, which longer-term has several benefits for Yield Yak and YAK stakers:

  1. Goal Alignment between Protocol and YAK holders: LPs are currently incentivized by high reward rates to provide liquidity for YAK in exchange for these LPs taking on the risk of IL. In the case of Yield Yak a majority of staking rewards (currently 60%) are used to incentivize LPs. If Yield Yak owned more of their own liquidity, these fees could be redeployed towards users who would prefer to stake YAK single-sided.
  2. Impermanent Loss. YAK holders would no longer need to subject themselves to the risks of IL in order to share in the platform’s revenues.
  3. Greater price stability. Yield Yak owning more liquidity ensures that during times of price volatility, the depth of liquidity remains. Currently, LPs may choose to remove their liquidity to avoid IL during a market crash or spike, further accentuating price impact of a YAK trade. Yield Yak owning more of its liquidity ensures more permanence of liquidity.

If you have any further questions about bonding, jump into our Telegram or Discord communities where Yak Guides will be able to answer any questions you may have. Happy bonding!

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.

Web | Twitter | Docs | Telegram | Discord

--

--

--

Earn more yield. Tools for defi users on Avalanche.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Pizza Carnival, Trade to Win 50,000 USDT

The voting process to list the WOOP on Gate.io will take place on April 15 and 16

Vote to list Woonkly Power on Gate.io since GMT 04:00 04/15–16

What’s So Trendy About Cryptocurrency That Everyone Went Crazy Over It?

The only key NFT that’s opening all the right doors

Could Blockport be the next big crypto exchange? Let’s find out.

Do you own a 1000 Bitcoins?

Value Creation & Preservation

How to buy BDC tokens from Metamask

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Yield Yak

Yield Yak

Earn more yield. Tools for defi users on Avalanche.

More from Medium

Introducing MONEYCRV: a new Stablecoin Pool with Vesting Rewards

Securing Our Network

Day 5 of #7Daysof Growth: Partnership with Weave Finance

QiDao Weekly Updates — Week 37 (01/10–01/16/2022)