The Weekly Yax #9: YAXIS Tokenomics
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
- June 15th commenced the second Champions Table Design Contest.
- June 17th yAxis announced a strategic backing from COSIMO X.
- June 18th marked the 9th episode of Ya Herd?
- June 18th kicked off the first Champions Table Design Contest voting.
Ya Herd? Week #9 Key Takeaways
YAXIS Today: The current primary use cases for the YAXIS token are staking and providing liquidity (learn how with our tutorial videos). yAxis presently resides in a “proof of concept” or “pre-launch” environment leading up to v3 Canonical Vaults, the flagship vision for the Project. YAXIS holders today are farming as many tokens as they can for a slice of future yield farming profits generated by Canonical Vaults and growing their Great Harvest allocation.
Era 2 Tokenomic Improvements: In Era 2, yAxis will implement a proven tokenomic model — Gauges. Curve Finance’s governance token, CRV, has an aggressive emission schedule, yet CRV has retained value (up over 200% YTD) as a result of this innovative tokenomic design. Gauges will bring added utility to YAXIS by incentivizing vault users to buy and hold the token to direct emissions to their desired vault. In addition, Gauges will introduce a behavioral economics component in which vault users that sell their YAXIS rewards will receive comparatively less rewards, and thus lower yield. This improvement will incentivize depositors that are more aligned with the long-term vision of yAxis. As a result, well-aligned capital should increasingly make up a greater and greater share of the TVL. Lastly, the time-lock component of Gauges, combined with the Great Harvest and buyback revenue, are poised to enhance value accrual to YAXIS.
Long-term Vision: Common question — what’s the plan after emissions end? Turning back the clock to the beginning of Era 1, we’ve discussed at length the role of emissions in bootstrapping crypto-native capital (see Weekly Yax #1), proving yAxis can operate at scale, and serving as a bridge to institutional capital while institutional-grade features are built. Many perceived that institutional capital vision as “pie-in-the-sky” or infeasible due to team public anonymity.
With the recent COSIMO X strategic backing paving the way to institutional capital, this vision appears within reach. Fully DAO-directed management, in which YAXIS stakers are incentivized to govern the vaults effectively to earn a share of yield farming profits, position yAxis to offer leading risk-adjusted returns and onboard sticky TVL that’s pursuing superior yield to traditional finance, yet lacks the time and/or expertise to navigate DeFi.
As mentioned in #1, growing your YAXIS stack now will enable you to earn a greater slice of this yield farming revenue. Canonical Vaults enable greater scalability in adding and managing yielding farming strategies, which presents a massive opportunity to increase base yield, grow revenue generation for YAXIS stakers, and incentivize more active vault governance.
A Look Around DeFi — Security as a Differentiator: The past week has certainly been a wild one across the DeFi space with many exploits and user fund loss events. These unfortunate events present an opportunity to revisit the discussion of risk-adjusted yields in Weekly Yax #8. Putting security first and minimizing risk improve the return profile of yAxis users, serving as a key component of the yAxis value proposition.
The full recording of this week’s episode can be found here.
yAxis Project Stats of the Week
- MetaVault TVL $35.1 million, earning 22% APY.
- YAXIS staking 402% APY (162% APR) and LP 544% APY (201% APR).
- Over 1,440 YAXIS bought back with MetaVault revenue this week for distribution in The Great Harvest.
- 78% of the YAXIS circulating supply is staked (up 2% week-over-week).
Community Content Spotlight
This week’s community content spotlight goes to the finalists of the first Champions Table Design Contest — the “Cointest.” Members of the yAxis community submitted designs for a yAxis physical coin. The five finalist designs are shown below.
Voting for the winning design has been conducted here. Thank you to all yAxis Herd members who submitted coin designs. The quality of these designs reflects the amazing talent we have here in the yAxis community.
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 email@example.com. You have the opportunity to shape the next era of yAxis.
That concludes the ninth edition of The Weekly Yax. Thank you for reading and looking forward to many more!
Onward and upward, Yax Herd!