Yield Yak reveals Platypus launch strategy including treasury contribution and double-rewards pool to kickstart stablecoin yields
As we await the final whitelisting from Platypus, we wanted to update the community on our strategy at launch and why we believe this will deliver the highest possible stablecoin yields to regular users, whilst working harmoniously to support Platypus’ future by perpetually staking significant amounts of PTP.
- Stablecoin pools for USDC, USDC.e, USDT, USDT.e, and DAI.e will have no deposit/withdrawal fees
- Yield Yak will bootstrap its PTP pool from its own Treasury with 250K PTP over the course of the next 18 months, starting with 25K tokens deposited at launch and adding 12.5K tokens every month, representing over $1M added to the pool at current prices
- Users can deposit PTP in exchange for yyPTP which can be staked for double rewards to receive: 10% of the PTP generated from stablecoin pools + 4 YAK per day distributed to yyPTP stakers over the first 14 days
- Yield Yak’s Platypus strategies have been audited by CoinFabrik (audit can be found here).
- Wen ape? More details will be announced when PTP and stablecoin pools are open for deposits.
What is Yield Yak’s approach?
When PTP is generated from the stablecoin pools and reinvested, 80% will be compounded back into the underlying stablecoin asset, 10% will be staked into the PTP Vault, and 10% will go to yyPTP stakers. These ratios are subject to change for the health of the ecosytem.
Here’s an overview:
Depositing PTP into our PTP Vault is an irreversible action and you’ll receive yyPTP at a 1:1 ratio. The PTP Deposited will be staked with Platypus and used to mine vePTP to increase stablecoin yields for all Yield Yak depositors. This is how normal users are able to earn yields typically reserved for whales: by leveraging the large vePTP balance Yield Yak accumulates over time.
But why should you deposit your PTP with Yield Yak? yyPTP has benefits now, and those benefits will grow as Platypus will develop, including:
- 10% of PTP generated from stablecoin pools awarded immediately
- At launch, 4 YAK/day for first 14 days
- When Platypus begins to distribute platform fees to PTP stakers, these rewards will accrue to yyPTP
- Bribes for future PTP governance could accrue back to yyPTP holders
- Secondary trading markets for yyPTP may be created, allowing you to trade yyPTP in the future and opening new incentive possibilities.
Should I deposit my PTP with Yield Yak? What are the risks?
Depositing your PTP on Yield Yak (and other platforms built on top of Platypus) bears certain risks. The token you receive in exchange could end up being worth less or more than the PTP you deposited based on the success of the protocol and its strategy. A few factors to take into consideration when making your decision:
- If you’re currently staking PTP and stablecoins on Platypus and have accrued a vePTP balance that gives you higher yields than on Yield Yak, then it probably doesn’t make sense for you to move your PTP and stablecoins to Yield Yak to earn lower yields. We expect the Yield Yak Platypus yields to grow over time as our vePTP balance grows, but this will not be immediate
- The immediate rewards for staking yyPTP vs your value of PTP which will only be known after launch depending on how much yyPTP is being staked and how much PTP is being generated by the stablecoin pools.
- Your expectation of the long-term success of yyPTP and Yield Yak’s strategy.
We believe we are in a strong position to succeed because of the Treasury contribution, our track record, strong ecosystem partnerships, and most importantly the Yak community, but as ever, DYOR and use at your own risk Yakheads.
For more info on Platypus and Yield Yak’s approaches, read on.
Platypus has created an innovative new system to offer incredibly low slippage on stablecoin trades, even better in most cases than competing stableswap platforms such as Curve.
It achieves this through “single-sided open liquidity pools”; what this means is that, instead of having rigid pools of 2 or 3 stables like in classic systems, here, all the stablecoins participate in one single pool.
This system allows for more flexibility: if in the future, more stablecoins were added to Platypus, they would be contributing to the same pool, whereas on Curve they would need to create a new pool just for that.
Now on to its liquidity mining system and how high stablecoin yields are generated.
It works through 2 reward pools of PTP: a ‘base’ pool and a boosted pool. To be rewarded from the base pool you simply deposit your stablecoins and start farming PTP, receiving an amount proportional to the percentage of the pool of stablecoins you contribute to.
The boosted pool is based on vePTP (which stands for Voted Escrow PTP):
- To earn vePTP, which are non-transferable and non-tradable, you need to stake PTP
- By staking PTP you will accumulate vePTP up to a maximum of 100 vePTP per each PTP you stake
- If you unstake any PTP you will lose all the accumulated vePTP
The amount of PTP that you receive from the boosted pool will depend on how many vePTP you own in proportion to the entire pool of vePTP.
So if you have deposited stablecoins in Platypus AND have vePTP you will receive PTP from both the standard pool and the boosted pool, whereas if you don’t have any vePTP you’ll receive PTP only from the standard one.
Yield Yak’s Strategy Explained
Yield Yak was an early investor and partner to Platypus and as such acquired PTP tokens which we will stake as we receive them in order to mine vePTP for Yield Yak users, which will in turn boost yields. 25,000 PTP tokens will be staked at launch from the Treasury, with 12,500 PTP added to the PTP Vault every month for 18 months, totalling 250K PTP contributed by the Yield Yak treasury to boost the yields of all its users.
How this works:
- We stake PTP to accumulate vePTP
- We deploy stablecoin strategies where you will be able to deposit your stablecoins
- Since we are accumulating vePTP all our strategies will be rewarded from the boosted pool and the standard pool, enjoying the highest returns
- Every time that these pools are reinvested 3 things will happen: (1) Part of the earned PTP will be exchanged for the deposited stablecoin, to make the pool of stablecoins grow (i.e. your deposit grows), (2) Part of the earned PTP is staked to accumulate more vePTP (i.e. Yield Yak PTP Vault grows), (3) yyPTP stakers earn PTP (users who deposited their PTP with us are rewarded)
This will generate a positive loop in which the increase of vePTP will boost rewards, generating more PTP and yield without having to worry about managing it yourself. As usual, sit back, relax, and let Yield Yak do the hard work for you.