If you're wondering why there are many vaults for the same pairs inside @beefyfinance just remember that Beefy is like a hub of yield alternatives from different ecosystem protocols: in this case, @MetisDAO protocols
Why would I not just go straight to the underlying protocols?
Well, @beefyfinance tends to boost yield. since if any platforms partnered w them gives em promotional coins on top of any interest, they take those coins & sell em for more of what you staked
1. #MetisEDF: The Metis Ecosystem Development Fund Flywheel
The Metis Ecosystem Development Fund (EDF), currently worth over half a billion USD, is a 4.6M on-chain $METIS fund created to accelerate adoption and growth on #Metis. At launch, it turned a lot of eyes towards the Metis ecosystem, increasing awareness for the ecosystem dApps and demand for the $METIS tokens. This kicked off a swift flywheel effect:
The more demand there is for $METIS, the more the #MetisEDF grows.
The more the #MetisEDF grows, the more the rewards for builders/holders/users grow.
The more the rewards for builders/holders/users grow, the more demand for $METIS.
The cycle continues, and strengthens.🔄
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2. Sequencer Mining Flywheel
Sequencer mining is basically another term for staking.
Initially, the decentralized sequencer will launch with three (3) sequencer nodes, and progressively grow from there. Each sequencer node can stake anywhere from 20,000 METIS to 100,000 METIS. Several LSD dApps are already in line to join the decentralized sequencer. Assuming there's 6 sequencer nodes in total after 6 months, and each of these holds 50,000 on average, the decentralized sequencer would lock 300,000 $METIS tokens, or 6% of the circulating supply.
As you can imagine, this number will likely just grow over time, creating potential supply shocks, fueling an increased demand for $METIS, and [Enter previous flywheel]: The higher the demand for $METIS, the higher the price of $METIS. Reward for sequencers are on $METIS.
Since the staked funds are also on $METIS, the APY will, in $METIS terms, remain the same. Although, in USD terms, it could increase significantly.
Enter game theory as well: Why would you put your $METIS rewards, which are automatically added to your position's balance, anywhere else if you're getting a liquid staked METIS by mining through a METIS LST?
There will be products for $METIS LSDs, which will allow staked $METIS to earn yield by staking $METIS (sequencer mining) AND LPing/lending that stMETIS for extra yield.
Higher yield➡️higher number of $METIS locked➡️higher value for $METIS➡️higher demand for $METIS 🔄
It's official: WAGMI (@PopsicleFinance) will deploy on @MetisDAO on Monday.
It will be the first disbursement of the #MetisEDF: the 4,600,000 $METIS ecosystem development fund.
Here's everything you need to know to make the most of out of this deployment🧵👇
@danielesesta, founder of WAGMI, singlehandedly attracted billions of dollars to other ecosystems, including Fantom and Avalanche. On his own words, the potential here is way bigger. He's also deploying a protocol never seen before. WAGMI, but on steroids.
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On this thread, we'll cover:
• What is WAGMI deploying on @MetisDAO?
• Ecosystem composability
• Alpha from the #Metis recent spaces with Dani
• Flywheel
This upgrade would do nothing in terms of centralization, or decentralization.
If anything, it would slow down the, sometimes referred as artificial, growth in Ethereum validators driven from the low max $ETH supply that is allowed per validator.