Thread by @MBApesNFT

1/ $JOE Wars are heating up! 🔥🚒🧑‍🚒

@yieldyak_ and @beefyfinance are live! @vector_fi is launching tmrw! @steakhut_fi later this week? Scroll through for the latest analysis! 🧠#smrt

2/ Quick refresh on veJOE dynamics. The longer / more $JOE you stake, the more veJOE / higher rewards you receive. If you unstake a single token, you lose all your veJOE. Given protocols long time horizon, they have a distinct advantage over the avg user 💎👐

3/ Understand the business model – each protocol will operate with a similar approach 1. Get people to deposit $JOE, 2. Accumulate veJOE to boost yields, 3. Offer users higher yields than they currently earn, and 4. Take a percentage of each reward. 🤑

4/ Result - $JOE depositors receive % of revenue, users / LPs will receive the benefit of higher yield (even net of fees), the protocols will earn steady revenue (for token hodlers) and there will be higher demand for $JOE (LFJ). Win-Win-Win! 🍾🍾🍾

5/ So who to bet on? Each protocol has a unique incentive structure. YY, VTX and Beefy offer a % of revenue to motivate users to deposit $JOE; Steakhut offers $STEAK which participates in protocol revenues (so very similar just with an extra step). See revenue breakdown below!

6/ YY currently holds an early lead with 3.2% of outstanding veJOE (and blackholed 866K $JOE). Further, the treasury is contributing 350K $JOE to supplement deposits and take advantage of the veJOE boosters by increasing overall holdings by 5% per week. (This could be huge)

7/ YY also reinvests 10% of all rewards back into $JOE! This may hamper short-term rewards (their head start will help offset this) but will offer consistent growth overtime as it builds its personal treasury! Note: there is currently no liquidity for yyJOE at the moment.

8/ Beefy is currently in 2nd with 0.53% of outstanding veJOE (283K locked $JOE). The protocol returns 90.5% of total rewards back to users, 5.0% to $JOE Depositors (in line with YY) and the remaining 4.5% rewards to hodlers of its BIFI token.🐄

9/ Currently North Pole is in 3rd with ~0.11% of outstanding veJOE (83K locked) but it was difficult to find its incentive structure. You can learn more here -

https://twitter.com/NorthPole_money/status/1511228427185291271?s=20&t=-RZH0cS6ds2aq1UqpmJajg

10/ Vector launches this week! VTX will reward the first 3 million $JOE deposits with 1 VTX token for every 6 $JOE deposited which nets out to a ~12.4% yield! Plus depositors will receive 12% of total rewards moving forward – not bad! I expect VTX to catch up quickly! 🔥

11/ Vector is the leader in the PTP Wars and uses the same incentive structure to build its $PTP / $JOE deposits by offering high revenue share. Further, VTX has built an active community by returning 6% of rewards to token hodlers. (12% / 6% are highest in respective categories)

12/ Finally, Steakhut is also launching soon! Steakhut utilizes a user-friendly approach with 97% of total rewards going to LPs! Assuming, they incentivize early $JOE depositors – the platform could offer the highest rewards to users early on!

13/ Steakhut is the only brand-new platform built for this sole purpose so it can focus all resources on one product and align its incentives with its users (plus it has fire memes) but lacking an established brand may hamper its ability to gain traction 🥩🛖

14/ Will Steakhut be able to earn enough veJOE with the lowest incentives for $JOE depositors? Will Vector be able to offer users high enough yields with the lowest take rate? Will Yield Yak’s personal treasury approach pay off long-term?

15/ Ultimately, more $JOE deposits -> higher rewards -> more users -> more revenue -> more $JOE deposits -> etc. Each platform has its unique advantages and weakness – it will be fun to see how it all plays out! Who will you be betting on?

Bonus: Remember there are only a finite number of rewards. If LPs significantly outweigh $JOE deposits, APRs will suffer. Fortunately, YY created a user-friendly website that will help you find the highest yield on your LPs! Check it out!

https://twitter.com/yieldyak_/status/1516030624292823047?s=20&t=-RZH0cS6ds2aq1UqpmJajg

Stay tuned for more analysis on the $JOE Wars. I'll provide updates each week, dive into the profitability of each protocol and even pick long-term winners. Follow @MBApesNFT for more threads!