The Weekly Yax #3: Understanding Canonical Vaults
The Weekly Yax is the easiest way to keep up with the yAxis Project.
Every Sunday, we highlight major news and developments, alongside key takeaways from the week’s episode of Ya Herd?
Major News & Developments
- May 3rd CoinMarketCap listed YAXIS.
- May 4th 1inch, the popular DEX aggregator, whitelisted YAXIS.
- May 6th introduced the Autumn season of Era 1.
- May 7th marked the 3rd episode of Ya Herd?
- May 9th revealed The Great Harvest & Winter Stash details.
Ya Herd? Week #3 Key Takeaways
- Canonical Vault Assets: BTC | ETH | LINK
- How Canonical Vaults Earn Yield: (1) Deposit the BTC | ETH | LINK into a lending platform like Aave or Compound, borrow stablecoins against the asset, and find higher yielding stablecoin farms. (2) Deposit the BTC | ETH | LINK directly into a vault or pool that accepts the native asset. By pooling capital, Canonical Vaults are gas-efficient and increase access to these strategies for smaller users. Automated harvests and auto-compounded rewards should add additional efficiencies over the MetaVault.
- Market Landscape for Canonical Vaults: Overall, BTC | ETH | LINK are a less penetrated market for yield than stablecoins, allowing yAxis to deploy a smaller amount of emissions per dollar of TVL attracted. For instance, Bancor’s LINK pool is the primary venue to earn yield on LINK with nearly $500 million in TVL. These LINK are earning just 11.8% yield and the pool is constantly full. Canonical Vaults and yAxis’s ties to the Chainlink Community present an immense opportunity to attract TVL and provide Marines with a productive place to park their LINK.
- Capital Being Targeted: Even at $1 billion TVL across the vaults, the current scheduled rate of emissions offers a 13% APY boost to underlying strategies at a YAXIS price of $30. This lucrative boost at scale, enables yAxis to offer industry-leading yields with advanced security to mining pools, VCs as intermediaries for TradFi capital, and potential Fintech partners.
- YAXIS Utility with Canonical Vaults: Gauges and their time-weighted locking mechanism will provide yAxis with enhanced opportunity to integrate the YAXIS token into the use of the platform and greater flexibility in incentivizing long-term supporters. Furthermore, YAXIS buybacks are currently about $28k per day at $160 million TVL. Assuming Canonical Vaults could attract $1 billion TVL, the current buyback rate would translate to $175k per day or $64 million per year, which is roughly two times larger than the current YAXIS market cap. This revenue stream is yet another reason to stack as many YAXIS as possible during Era 1.
The full recording of this week’s episode can be found here.
yAxis Project Stats of the Week
- MetaVault TVL $158.7 million, earning 52.2% APY.
- Over 3,990 YAXIS (~$120,000 at today’s prices) bought back with MetaVault revenue this week for distribution in the Great Harvest.
- YAXIS staking 2,501% APY (327% APR) and LP 3,369% APY (412% APR).
- yAxis Project Discord members and Twitter followers both up 4% this week.
Community Content Spotlight
This week’s community content spotlight goes to Baikou. Baikou wanted to help yAxis communicate the buybacks from MetaVault revenue, so he created the neat webhook shown below:
While a few finishing touches are in progress, Baikou’s work serves as another key medium to convey the powerful tokenomics of the yAxis Project.
Join Us: Bounties & Jobs
Coordinated by the yAxis Champions Programme, the yAxis Bounty Board lists requests for proposals (RFPs), where community members can respond to specific Project needs and receive compensation upon task completion. See the current opportunities below and check the Bounty Board frequently as more opportunities will be added over time.
If none of the current opportunities appeal to you, but you would still like to contribute, reach out to firstname.lastname@example.org. You have the opportunity to shape the next era of yAxis.
That concludes the third edition of The Weekly Yax. Thank you for reading and looking forward to many more!
Onward and upward, Yax Herd!