Overview

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 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 professionals knowledge and time, and are happy to pay a fee for that service.

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.

We aren’t chasing short term gains here, but long-term passive income. Our users include those new or unfamiliar to DeFi - not only experienced farmers.

As the bull run wears off, we believe many will look towards capital preservation.

How it works?

We built a abstract base layer into MetaVault, that we can plug strategies into. This means users 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.

On the other side of the desk, the funds are 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 add 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.

So for example, the DAO could choose 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 harvest those tokens from across projects and sprinkles $YAX on top for leading APY.

MetaVault is not a competitor to these platforms, we are effectively a large user.

Technical Overview

The yAxis strategist is a permissioned role with strictly limited functions; To add and remove strategies, to change 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 priorty order. The strategist picks that priority order, and applies a funding cap to it.

For example, 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.

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 harvest those tokens from across projects and sprinkles $YAX on top for leading APY.

MetaVault is not a competitor to these platforms, we are effectively a large user.

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?

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 vantage point, 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 stay on top of the industry.