Thread by @MBApesNFT

1/ $JOE Wars Update!

@vector_fi takes a commanding lead! What can @yieldyak_ do to close the gap? Wow so much as changed in the past two days it’s time for another thread 🧵

Just the opinion of a couple Apes. 🧠#smrt

2/ On the first day of launch, @vector_fi locked over 8 million $JOE on the protocol forever - Quite the start! The protocol has already reached #1 in veJOE and will continue to build its lead overtime. Learn more -

https://twitter.com/vector_fi/status/1516826987259568134?s=20&t=iXYXmZCxTRtncn-q_dbahQ

3/ Despite a week head start, @yieldyak_ has fallen to 2nd place. $JOE depositors are drawn to Vector’s higher revenue share (12% of total rewards given to $JOE depositors vs only 5% for Yield Yak) and strong early incentive program (now over)

4/ However, Yield Yak can make a comeback! The platform has an amazing brand and great UX. With just minor changes to its incentive structure the protocol will be able to drive user adoption and regain its position on top…

5/ Currently, YY returns 85% of rewards to LPs, 5% to $JOE depositors and 10% to its personal treasury to reinvest in $JOE. The treasury will build reserves, boost veJOE rewards and return value to $YAK hodlers, but it will take time ⌛️

6/ Yield Yak needs to act fast and shift its focus to acquiring $JOE deposits now or risk falling even further behind. I recommend realigning its incentives by giving 12% of rewards to $JOE depositors and 3% to Treasury… I’d even consider 14% / 1% or 15% / 0% early on 🏦

7/ This change will entice more $JOE deposits with a higher return, shift the narrative and drive user adoption. Furthermore, this change will actually be a net gain for its treasury…

8/ YY currently has 2.4% of outstanding $JOE staked in veJOE (Vector has 23.6%). If this change helps YY increase $JOE deposits by 3.3x (to 7.9% - seems doable) than the new 3% allocation to treasury will be greater than the current 10%! Assuming LPs / revenue grow in proportion

9/ Result: Yield Yak will offer better rewards than Vector by matching 12% to $JOE depositors, higher returns to LPs (85% vs 82%) and its final 3% will continue to help $JOE depositors and LPs by reinvesting in $JOE through its treasury! 🤑

10/ And depositors will receive rewards in $JOE!
@traderjoe_xyz

11/ An auto compounder with a better incentive structure, strong brand (an OG of Avalanche) and great team will be hard to beat! And its treasury has committed 350K $JOE to strategically take advantage of veJOE boosts (underrated addition)!

12/ Ultimately, Yield Yak is down by not out. By making a small change to its incentive structure YY can attract new deposits, drive adoption and challenge Vector for the top spot in the $JOE Wars!

13/ And if Yield Yak wins, we all win! Everyone will benefit from more competition! More $JOE locked, more veJOE, more rewards, higher APRs! 🌕🚀

14/ The $JOE Wars has just started. Protocols will need to adapt and innovate to drive new $JOE deposits and I am excited for what’s to come. Hope you have your $JOE bag stacked!

@steakhut_fi you’re up next! Let’s see what you got.

15/ Follow @MBApesNFT for more updates on the $JOE Wars and the Avalanche DeFi landscape. Mint your very own MBApe on May 2nd to get access to all our exclusive Alpha!

Comment / Like / RT to get spread the word and get @YieldYak attention!