YAXIS: Emissions Schedule
On 17th April — yAxis is embarking on an adventure. Part of that is the much anticipated new emissions; Let’s take a deeper dive into these.
In DeFi, it can often seem like you’re chasing APY. With returns either not as advertised, or lasting only a couple of weeks, farmers end up constantly rotating between projects at cost.
The four Eras of YAXIS comes with an ambitious emissions schedule that provides a unique advantage. Longevity.
The APYs coming after launch are not a one week flash in the pan. Whether you are a staker, vault user, or LP — these APY’s will be sustained enough to realise significant compounding growth.
The Spinning Wheel
When TVL enters the vaults we put it to work to earn yield from farming. That yield is used to continuously market buy YAXIS and so provide price support.
The TVL we can attract depends on strength of the token.
We need to incentivise both Staking and the Vaults. They work together in a spinning wheel effect.
In an ideal World:
YAXIS LPs APY > YAXIS Staking APY > Vault Users APY
If we direct emissions reasonably, this should naturally balance itself out.
However, we do have some control over emission rates; we can adjust when intervention is necessary.
Compounding Effects
Interest rate and APY are related but different things.
The interest is the rate at which you are earning, but without taking compounding into account. I.e If we reinvest todays farmed tokens, tomorrow you would earn marginally more.
How do we calculate APY?
APY= (1 + r/n )n — 1, where “r” is the stated annual interest rate and “n” is the number of compounding periods each year
The takeaway is — compounding effects are powerful over time, especially at high interest rates.
Some examples:
20% Interest Rate = 22% APY (when compounded daily over a year).
100% Interest Rate =171% APY (when compounded daily over a year).
400% Interest Rate = 5240% APY (when compounded daily over a year).
Era 1 Schedule
17th April — 17th July
Disclaimer: APY forecasts and projections of potential rewards are not guarantees. They are intended to give context to the relative size of emissions. Rewards are variable and dependent on a number of factors.
Staking
YAXIS single-asset pool — 750,000 tokens
Value returned: Supports token price, incentivises holding.
Note:
1) This projected growth is baseline and assumes zero TVL.
2) Above zero TVL: Revenue distribution adds to it dependent on current TVL and strategies deployed.
3) APY of staking reduces as circulating supply rises over time.
4) With high levels of staking, holders may farm less tokens numerically — but compensated with stronger price performance as very few are sold.
5) Current staking rate is 50%.
Vault Users
USD Stablecoin, 3CRV — 1million tokens (from 24th April)
Value returned: Revenue buys back YAXIS on open market.
For reference: BTC | ETH | LINK vault competitors top out at 25% APY.
Note:
- High rewards will quickly draw capital into the vaults and APY will balance out.
- The higher the price, the more TVL we can attract. The better strategies we can deploy become especially important at higher TVL.
Disclaimer: APY forecasts and projections of potential rewards are not guarantees. They are intended to give context to the relative size of emissions. Rewards are variable and dependent on a number of factors.
Liquidity Providers
DEX — 250,000 tokens
Value returned: Ability to trade YAXIS
Note: APY will normally be higher in the LPs as TVL adjusts to reflect the added risk. After a certain amount of liquidity to prevent slippage, it becomes an inefficient use of tokens.
E.g There is no purpose having a $50m LP for a $20m Mcap with $1m daily volume.
Buyback Distribution of YAXIS (Era 2)
The TVL in the vaults generates yield farming profits through our deployed strategies. We harvest the strategies— swap them into YAXIS — then (from Era 2 onwards) distribute them back to Stakers in real-time.
The variable factors are:
- Underlying strategy APY.
- TVL in our vaults.
- Value of YAXIS staked (both price and circulating supply)
To repeat from earlier: Our shared goal is to build that vault revenue up to a point that each token holder is receiving these boosts.
If you have any questions on the above, come and ask in Discord.
The yAxis Team
