Yield Yak x Geode Finance x Eden Network team up to bring liquid staking to Avalanche
Yield Yak is thrilled to announce a first of its kind collaboration for DeFi which has a singular objective — bring more yield than ever to Avalanche users.
In partnership with Geode Finance and Eden Network, Yield Yak will launch the innovative yyAVAX token, a yield bearing liquid staking token with token opening ceremony details to be released soon.
TLDR:
- Yield Yak will be launching yyAVAX, a new yield-bearing liquid staked version of AVAX which will unlock rewards currently reserved for AVAX staked on the Avalanche P-Chain
- Geode will provide the trustless liquid staking product with dynamic withdrawals via Yield Yak’s user interface
- Eden Network, core infrastructure specialists who redistribute miner extractable value on the Ethereum network, will run validators on the P-Chain and reward yyAVAX holders with additional yield generated from their operations, further boosting the yyAVAX value vs AVAX
- Geode’s Avalanche Fuji Testnet launch is in progress. Contracts are currently under audit. Launch is being targeted in coming weeks with more details on yyAVAX utility still to come
We believe this to be the most dynamic liquid staking solution yet designed, collaborating multiple projects and protocols together to generate the most value and utility for the yyAVAX end user.
How does it work for users?
Users will be able to deposit AVAX on Yield Yak and receive yyAVAX.
The price of yyAVAX to AVAX will be monotonic, meaning that yyAVAX will always increase based on the yields from the P-Chain progressively being distributed to yyAVAX holders.
Put simply, yyAVAX is the interest-bearing version of AVAX. As the DeFi utility of yyAVAX grows, our vision is for it to become the default and most trusted version of liquid AVAX used across the Avalanche DeFi ecosystem. Here’s what the process will look like behind the scenes:
What is Liquid Staking?
Currently, ~60% of all circulating AVAX is locked on the P-Chain which secures the Avalanche network. Validators and delegators earn AVAX rewards in exchange for staking (for a minimum of two weeks). AVAX on the P-Chain lacks any additional utility, as it cannot also be used on the C-Chain to take part in the burgeoning Avalanche ecosystem.
Liquid Staking solves this, as it allows users to stake AVAX and receive a new token, yyAVAX, which is an Avalanche C-Chain representation of staked AVAX on P-Chain. Thus users are able to earn both the rewards for securing the network AND take part in the Avalanche DeFI ecosystem.
Geode is responsible for the yyAVAX smart contracts, which ensure the correct value of yyAVAX based on rewards earned on the P-Chain.
Eden will operate the back-end infrastructure to optimize yield generation for yyAVAX holders. This will include working to support Avalanche subnets as a validator.
To learn more about the differences between the Avalanche C-Chain and P-Chain, click here.
What’s Next?
Geode’s liquid staking product is currently in testing on Avalanche Fuji Testnet and an audit is already in progress with the yyAVAX launch date targeted in the coming weeks.
Stay tuned for opening ceremony details, as well as planned DeFi integrations for yyAVAX.
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.
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About Geode
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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About Eden Network
Eden is a priority transaction network that protects traders from frontrunning, aligns incentives for block producers, and redistributes miner extractable value. They also pioneered staker extractable value, an initiative that allows stakers of the EDEN token to earn rewards based on their trading volume. Get paid to trade.
