The team at yAxis is excited to be rolling out v2 today. We believe this is a tool to make DeFi easy and accessible, and is a big step towards our final vision in v3.
How is yAxis different?
yAxis has built a layer on top of other yield aggregators that allows us, for the first time in DeFi, to fulfil the role of a fund manager.
Just as in TradFi, most people invest into a savings scheme to benefit from a professional's knowledge and time.
Similarly; the benefits for MetaVault are:
- No time spent researching and managing your portfolio.
- No knowledge of DeFi required to gain attractive returns.
- Lower risk; go to sleep, switch off your phone, travel without worry.
- Save on gas fees; which cumulatively become significant over time when trading yourself.
- No 'Impermanent Loss' (IL).
Our aim is to secure long-term sustainable growth for users, not chase quick, risky gains. And especially for smaller accounts, a chance to secure their financial future.
Theoretical Example: Someone with $5,000 will struggle to maintain high principal growth as transaction fees and IL constantly eat into profits. By pooling fees under one vault, and actively managing these funds 24/7 - we can offer a viable long-term yield farming solution.
At our current 35% APY, MetaVault could grow that $5,000 into $100,000 over 10 years. And while the current demographics of DeFi aren't looking at those time horizons, a wider potential audience is.
As the bull run wears off and more people come to DeFi, we believe many will be looking for capital preservation and income.
Whereas today, the FIRE (financial independence, retire early) movement still requires a fairly high amount of capital (~$1m) to live off a safe withdrawal rate through index trackers - DeFi and the MetaVault can offer the same passive income with far lower capital requirements.
And that's what people want: To be free from the grind. To not have to worry about their future anymore.
How it works: Overview
We built an abstract base layer into the MetaVault that we can plug strategies into. This means investors are not presented with a long list of choices to make, they simply deposit into the top of the vault. One step in, and one step out.
Our goal here is to hide away the complexities and confusion of DeFi, and focus on simple onboarding of funds.
On the other side of the desk, the funds are then DAO-directed. The YAX governance token holders act as a 'decentralised fund manager', and they signal which strategies to add or remove. They are providing a real value-added service, and get a real percentage of the profits earned.
Our pluggable strategies allow for a seamless switching of fund allocations between projects in the layer beneath, whilst pooling the transaction fees involved.
Example: the DAO could choose to deposit 20% into the $YFI yVaults, 50% into dy/dx, and the rest into a $PICKLE pJAr.
Whilst YFI, PICKLE and DYDX are harvesting those strategies and giving rewards back to users, they also (usually) add their own token on top.
yAxis on the layer above additionally harvests those tokens from across projects, and sprinkles $YAX on top for leading APY.
MetaVault is not a competitor to these yield aggregators, we are effectively just a large user of them.
How it works: Technical
The yAxis strategist is a permissioned role with strictly limited functions: To add and remove strategies, change strategy orders, apply caps, and withdraw funds back to the safety of the vault.
Funds going into MetaVault look for the first strategy they can fit in, based on a priority order. The strategist picks that priority order, and applies a funding cap to it.
Example: the strategist picks YFI for the first $20m, then DYDX for the next $50m, then Pickle for the next $30m.
Extra deposits go into a temporary overflow of a pure CRV strategy, until the caps are updated.
In the above left picture, if a fund deposited $30m, it wouldn't go into Dydx, as it can't wholly fit in to the pool. Instead it would all go to the CRV overflow until the caps are updated.
Why not be all in the 'best' strategy?
Higher APY often comes with higher risk, and often doesn’t last long.
- What if that vault gets exploited and you lose all your funds?
- What if that vault is flooded with investors and the returns drop?
- What happens if the pool closes, or emissions slow?
- What if hidden IL negates all the APY?
You aren't even notified of these events. It's easy to be drawn in by the 'best' APY, but what you are really taking away is a lot of stress, and far lower than advertised returns; we've all been there.
A traditional fund manager doesn’t put all their assets into one stock for good reason.
As part of a healthy risk profile, we practice diversification. That's only possible from our abstract layer, where we can split allocations across many strategies and projects.
At the same time, we can adjust our portfolio reactively to the market, or add new strategies from upcoming projects, ensuring we always stay on top of the industry.
What returns can I expect?
MetaVault v2 accepts stablecoin deposits in USDC, USDT, DAI and 3CRV. Our upcoming v3 will expand this to other asset types.
Current APY of MetaVault is 35% on USD stablecoin assets.
Theoretical Example; a $5,000 deposit would grow to $100,000 over 10 years. But note, this APY is likely to fluctuate over time.
A personally managed $5,000 deposited equally across other yield farming platforms would struggle to maintain high growth after transaction fees incurred.
MetaVault pools these fees, so they do not cut into users long-term growth. This is a key benefit to smaller accounts.
As TVL is deposited and withdrawn, emissions lower, or fund allocations are varied, the APY will change.
Are funds safe?
yAxis has done everything we can to strengthen our project.
MetaVault v2 has received two full independent audits from Quantstamp and Haechi Audit. https://certificate.quantstamp.com/full/meta-vault-v-2
We have an open bug bounty: https://immunefi.com/bounty/yaxis/
Our code is public: https://github.com/yaxis-project
MetaVault simply disallows smart contract interaction with the vault, which prevents flash loan exploits and other common attack vectors. We can also run simulated exploits in real-time to test our systems.
Our processes are governed by a 7 seat multi-sig, and hardware wallets. We also operate a 24hr timelock for contract changes.
How to use MetaVault?
It's straightforward to use MetaVault v2. Go to our website yaxis.io, and go to the Vault account page. You can then choose any combination of USD stablecoins to deposit, and click confirm.
Now comes a network transaction fee paid through your wallet. This is a higher than normal tx fee due to the number of conversions going on in the background.
We've recently made a change to adjust the 'earn limit', which results in noticeably cheaper fees for smaller deposits.
This is a one-time fee. Once you're in the MetaVault there are no further fees until you withdraw your funds. You can withdraw into any stablecoin of your choosing.
ETH fees are an industry-wide issue that everyone is struggling with. A number of solutions are underway.
Who's on the team?
We are a globally-diverse, community-sourced team, and although publicly anonymous we are known to each other. There are no founders, and no VC's.
We have a background in Enterprise Software, Tech Startups and Smart Contract development. The project and team have been operating for almost 6 months.
@Bobby is acting team lead and blockchain startup founder.
@transferAndCall is our rockstar trusted solidity developer in the industry.
@getgouda is another big hitter dev on front-end; both work at high profile blockchain companies.
@Vinrock is our ex-Facebook and Apple UI/UX designer.
@dogperrokukur is an experienced social media manager for a smart contract company and filling our communications role.
@Mr.G is another startup founder working on the business side.
@draukan is a front-end dev and creator of Trade Butler Bot (TBB).
@Ashitake is a management consultant at a prestigious US company.
What is the YAX token?
The YAX token governs the project. With YAX, holders can vote on changes and signal choices for the management of funds, and earn a portion of the profits. Acting and rewarded as a 'decentralised manager' of the MetaVault.
YAX had a fair start distribution, with no pre-mine or pre-sale. There are no founders and no VC's. All tokens are owned by the community, except for 40k tokens (4%), openly mined alongside distribution into the multi-sig treasury for future development.
Current Supply: 938,282 from a fixed cap of 1,000,000 tokens.
YAX can be traded on Uniswap and Linkswap.
The token address can be found on Etherscan: https://etherscan.io/token/0xb1dc9124c395c1e97773ab855d66e879f053a289
And CoinGecko: https://www.coingecko.com/en/coins/yaxis
Always cross-check a valid token address before purchase.
What are the tokenomics of YAX?
For playing the role of fund manager, YAX stakers receive a portion of the earnings as a fee.
YAX and MetaVault work together on opposite sides of the trading desk. The success of the project will revolve around TVL (Total Value Locked) deposited into the MetaVault.
There's a spinning wheel effect at play:
More TVL -> more fees earned. More fees earned -> higher $YAX price. Higher $YAX price -> higher APY in MetaVault. Higher APY in MetaVault -> more TVL.
Please note: YAX must be staked on yaxis.io in order to earn rewards.
What are the reward mechanics of MetaVault?
Please refer to the 'How it works' diagram above. The rewards earned are 20% of the governance tokens harvested at the strategy layer, whilst the other 80% and the full underlying strategy profits all goes to MetaVault.
Worked Example: A Pickle.finance strategy that harvests an underlying CRV LP, gains $CRV tokens and adds $PICKLE tokens on top.
- The CRV LP is providing liquidity and earning it's own fees. These CRV LP fees all goes to the MetaVault users.
- Then the harvested tokens, $CRV and $PICKLE ,are used to automatically buy $ETH on Uniswap.
- Then the split. 80% of this $ETH is converted and also given back to MetaVault users.
- The remaining 20% of that $ETH is used to buy $YAX and given to YAX stakers.
The same thing is happening for each respective strategy plugged into MetaVault, not all strategies will provide these tokens to harvest.
What's left to do?
On the UI, we're actively working on a number of improvements of known issues:
- Additional wallet support.
- Graphs that track your personal MetaVault or Staking account balance. Currently only YAX price.
- Volume displays.
- Historic MV performance statistics.
- Detailed strategy breakdown.
- Snapshot migration.
There will be a few other 'nice to haves' and numbers/calculations to insert. Nothing big, and that will be taken care of over the next couple weeks.
If there's anything missing, please let us know in the Discord channel.
What's next on the roadmap?
Governance and Insurance contracts. As a DAO-directed project, we will be moving towards on-chain voting for decision making.
The new governance contract will allow token holders to drive the protocol, specifying exactly what the strategist will be able to perform.
yAxis currently uses quadratic voting, which accounts for tokens held across all pools, to ensure large holders don't have an unfair balance of power, or anyone punished for not being in a particular pool.
We will introduce an insurance pool which gives additional yield.
A loss of funds will be covered by insurance (provided insurance is collateralized).
MetaVault strategy caps are based on the insurance pool size, and the pool will cover all vaults and strategies. Governance can trigger an insurance event.
An insurance event pulls funds from the insurance pool in order to cover the loss amount. Impermanent locking prevents withdrawals when the insurance pool has a debt.
Governance receives no yield when insurance pool has a debt which helps prevent governance from voting in insecure farms
v3 will upgrade us to a Canonical Vault with delegated strategies. It's the same concept of v2, but applied to any ERC20 token we can leverage.
What that means in practice is: BTC, ETH and LINK vaults for starters. With many firmly holding their favourite assets, they should be earning yield on the value they represent.
So the new BadgerDAO WBTC vault is an obvious strategy to deploy. The Canonical Vault would then harvest $BADGER, $DIGG and $YAX.
We will be using Aave to collateralize and borrow off the value of these tokens, and put them to work earning yield.
You can deposit any set of ERC20 tokens at the same time. For example a 'Deposit All' could accept 10 different coins in one transaction, each going to it's respective Canonical Vault.
Similar to the MetaVault MVLT token, each set of assets will have it's own Canonical Vault token. CV:BTC, CV:ETH, CV:LINK etc.
Whilst we don't like to publish timelines, we should have this shipped before Summer.
We see v3 as the true vision of yAxis, and will be spending the time and resources building our community and story in the run up to release.
We hope this has helped. Any further questions, you're welcome to reach out on our Discord. https://discord.gg/cuK2QzE