May 17, 2022
yyAVAX launches with capped 100K yyAVAX token Opening Ceremony
As Yield Yak’s new yield-bearing liquid staking token yyAVAX is launching with a 100K yyAVAX capped Opening Ceremony.
yyAVAX differentiates itself from the competition with better yield that’s easier to realize for users. Read on for more details.
TL;DR
- 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.
- DeFi utility and yyAVAX farming opportunities to be announced soon
- 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
The Opening Ceremony
yyAVAX is launching with a 100,000 yyAVAX supply cap. As yyAVAX is yield-bearing immediately from its deployment, the value of yyAVAX constantly increases vs AVAX, so it is not minted at a 1:1 ratio.
Yield is generated from staking rewards on the Avalanche P-Chain with fee-savings 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).
The initial cap is in place as an extra measure of caution to ensure that the liquid staking and yield-generating infrastructure built with our partners Geode Finance and Eden Network is working as intended. We outlined our partnership with Geode and Eden recently on our blog.
Better Yield
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.
Easier to Realize Yield
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, we expect 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.
Earning rewards on top of yyAVAX
Simply holding yyAVAX means you are earning yield as it constantly accrues in value vs AVAX. However, additional yield farming opportunities will be announced soon. Yield Yak plans to use the 5% of fees it receives to help drive yyAVAX adoption across the Avalanche Ecosystem. Yield on top of yield.
What does yyAVAX mean for $YAK?
Yield Yak receives 5% of generated yield from yyAVAX. At launch, this 5% will be put to work to drive adoption and DeFi utility. YAK also holds governance rights to yyAVAX.
Security
yyAVAX’s smart contracts, created by our partners Geode Finance, have been audited by CoinFabrik and reviewed internally by Ava Labs engineers.
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 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.
