We’ve received a ton of questions asking what we are building, why it will matter, and how it will compare to other yield aggregators and farming projects. This article should shed some light on our flagship project: the MetaVault.
Our primary goal at yAxis is to build a "meta" yield aggregator that chooses the best yield farming strategy for you. This will be a single vault that is platform-agnostic and takes advantage of other aggregator/vault products such as yVaults, APY.finance, pJars, etc. The MetaVault isn’t comparable to something like a yVault; it operates a layer above these strategies where it harvests yield and switches automatically to a better opportunity. Our product can be divided into two simple parts.
- The Multi-Asset MetaVault
Users will be able to deposit multiple types of stable coins and will receive a single type of token in return. This MetaVault token (MVLT) will represent the user's share of the MetaVault. The MVLT token is analogous to yVault yTokens (ie yDAI for the yearn DAI vault).
Behind the scenes, MVLT will accrue value as the MetaVault puts the deposited funds to work in the best yield aggregator strategy. This will all be done while pooling gas, which will decrease fees that often eat away at rewards, especially for smaller depositors.
When a better strategy presents itself, the MetaVault will convert deposited funds into the appropriate asset and deposit into the appropriate yield aggregator. For example, the vault may choose to switch from the DAI yVault to the sCRV pJar by withdrawing DAI from the yVault, converting DAI to sCRV, and depositing sCRV into pJar.
When users wish to withdraw their funds, they simply return their MVLT to the MetaVault, which will then distribute their deposits plus interest. Users can choose to withdraw into any stable coin.
2. Custom governance platform
The community will determine the MetaVault strategy by staking YAX governance tokens in a custom governance platform. YAX holders will choose from a “menu” of yield aggregators and will stake their YAX tokens in a contract that represents what they believe is the best strategy.
When voting on strategy changes, YAX holders won’t just consider aggregator APY, but also strategy risks, vault withdrawal fees, price slippage/fees from converting assets, and overall DeFi market sentiment. This will be displayed in governance UI. In return for voting, our community has expressed interest in paying YAX voters a performance fee from the MetaVault.
YAX voters are essentially signaling their preferred aggregator strategy on this governance platform. Initially, there will be a snapshot taken at regular time periods to determine if a MetaVault strategy change should take place. Plans for a more continuous model are in discussion. In early stages, multi-sig will have veto rights over strategy changes. Discussions are underway to further decentralize vetos.
A separate voting mechanism will allow YAX holders who are involved in strategy voting to vote for general proposals that influence yAxis. Determining which yield aggregators should be considered for voting is one such task.
🔭 Roadmap and Updates 👀
YIP-01 is live and includes the following changes to YAX distribution:
- End emissions with the conclusion of rewards epoch 2 (~10/15/2020).
- Reserve 30% of total supply (300,000 YAX) for future incentives
- Remove current community pools (YFV and YFL)
- Increase Uniswap YAX/ETH rewards to 3x
- Add a YAX BULL Balancer pool (90/10 YAX/USDC with 2x rewards)
As a reminder, rewards epoch 2 is live (weeks 3-4) and has reduced rewards from 200,000 YAX per week to 150,000 YAX per week. Emission will continue until block 11069800. yAxis governance will vote soon on MetaVault incentives, which will continue emissions after rewards epoch 2.
We intend to launch the first iteration of our MetaVault shortly after emission ends: the week of 10/19/2020. Exact time of launch will be announced at a later date. This will allow time for the community to vote on items such as initial MetaVault strategy, YAX voter rewards, YAX incentives for MetaVault depositors, and deciding which aggregator products should be considered for strategy changes.
✨ Summary ⚡️
The yAxis MetaVault takes advantage of existing DeFi “money legos” to further simplify yield farming for users. The MetaVault is a true “set it and forget it” product for users who want to take advantage of the best yield farming strategies while minimizing gas fees and transferring difficult management decisions to an incentivized governance community.
The MetaVault isn’t only limited to yVaults and will take advantage of current and upcoming aggregator projects such as pJars, APY.finance, and eventually cross-chain strategies. We believe that these aggregator projects are where strategy writers compete for capital and strategy fees. The yAxis MetaVault, on the other hand, operates in a layer above these projects, where DeFi users can truly automate their yield farming.
📣 Community 📱