How It Works
yAxis built an abstract base layer into the MetaVault for strategies to be plugged into. This means investors can simply deposit a single asset, 3CRV, into the vault, and have the contracts deposit that 3CRV into the top priority strategy that is currently accepting funds.
Pluggable strategies allow for funds to quickly and easily be switched between projects whilst pooling the transaction fees involved. The deployment of strategies is decided by YAXIS stakers, who receive a share of the profits in return for their efforts.
Upon depositing, users receive MVLT tokens that represent a share of their position in the MetaVault. These tokens can be traded on secondary markets and are Layer 2 agnostic.
Priorities & Caps
Strategies are listed in priority order. Each strategy acts like a bucket with a cap applied to it. This has the effect of controlling risk and enabling the changing of allocations as a traditional fund manager would do.
When a new deposit is made, the capital looks for the next available bucket to fill in order of priority. If a deposit is too large to fit in any bucket, it goes into an overflow strategy (Curve) until a new bucket is created or becomes available. When funds are withdrawn, they are first taken from the overflow strategy, and then in reverse priority order.
Harvests
Profits accumulated through trading fees, interest, etc. are always fully retained by users of the MetaVault. Harvested governance tokens are converted into Ether. 75% of the purchased Ether is reinvested into the MetaVault for additional compounding. The remaining 25% of the Ether is used to buy back YAXIS on decentralized markets for distribution to stakers and the treasury.
Example
Take 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 its own fees. These CRV LP fees all go to MetaVault users.
The harvested governance tokens, CRV and PICKLE, are used to market buy ETH.
75% of the purchased ETH is converted into the LP token to compound the MetaVault's profits.
The remaining 25% of that ETH is used to buy YAXIS for distribution to YAXIS stakers (20%) and the treasury (5%).
Last updated
