🌟: Let me introduce you to Y2K Finance, the next great Arbitrum project.
What is @y2kfinance ? How does it work? And how it could have saved you from the #LUNA collapse?
A thread (🧵)
#Ethereum #Arbitrum #L2s #crypto #altcoin
What is @y2kfinance ? How does it work? And how it could have saved you from the #LUNA collapse?
A thread (🧵)
#Ethereum #Arbitrum #L2s #crypto #altcoin
1-What is Y2K Finance?
@y2kfinance is a suite of structured products designed for exotic peg derivatives. It will allow market participants:
📌To Hedge
📌To Speculate
On the risk of a particular pegged asset
@y2kfinance is a suite of structured products designed for exotic peg derivatives. It will allow market participants:
📌To Hedge
📌To Speculate
On the risk of a particular pegged asset
2-Why is Y2K concerned with pegged assets?
#Y2K believes there is a fundamental mispricing in the risk associated with pegged assets.
Recent de-peg events like $UST or $stETH and fear-based runs on $USDT have shown the risk is much higher.
#Y2K believes there is a fundamental mispricing in the risk associated with pegged assets.
Recent de-peg events like $UST or $stETH and fear-based runs on $USDT have shown the risk is much higher.
The top three #stablecoins (USDT, USDC, BUSD), account for over 17% of total #crypto marketcap.
Stablecoins and other pegged assets will continue to grow, which is why #Y2K felt to be an essential component in the #DeFi ecosystem.
Stablecoins and other pegged assets will continue to grow, which is why #Y2K felt to be an essential component in the #DeFi ecosystem.
3- What are the Y2K products?
#Y2K will start with 3 main products:
🌊Tsunami:
It is a Collateralized Debt Obligation (CDO) powered lending market for pegged assets with MEV-proof liquidations.
#Y2K will start with 3 main products:
🌊Tsunami:
It is a Collateralized Debt Obligation (CDO) powered lending market for pegged assets with MEV-proof liquidations.
🔥Wildfire:
Providing a secondary market for the trading of tokenized risk. This on-chain orderbook permits you to trade #Y2K risk tokens in order to:
📌Unlock liquidity
📌Allow the repricing of semi-fungible tokens
Providing a secondary market for the trading of tokenized risk. This on-chain orderbook permits you to trade #Y2K risk tokens in order to:
📌Unlock liquidity
📌Allow the repricing of semi-fungible tokens
⛰️Earthquake:
It leverages a variant of the ERC-4626 standard for the creation of fully-collateralized insurance vaults.
Users can use these vaults to hedge, speculate & underwrite the volatility risk associated with various pegged assets.
It leverages a variant of the ERC-4626 standard for the creation of fully-collateralized insurance vaults.
Users can use these vaults to hedge, speculate & underwrite the volatility risk associated with various pegged assets.
4-How does the Earthquake vault work?
Before taking a concrete example to explain the Earthquake vault, you need to know that:
📌Each vault has 3 properties: Asset, Epoch & Strike.
📌Users fund insurance vaults with $ETH
Before taking a concrete example to explain the Earthquake vault, you need to know that:
📌Each vault has 3 properties: Asset, Epoch & Strike.
📌Users fund insurance vaults with $ETH
What are asset, epoch & strike?
➡️Asset: Specific pegged asset the vault is trading
➡️Epoch: Start & end date of the vault
➡️Strike: How far from peg the asset price needs to deviate to trigger a liquidation event & a payout to the Premium vault depositors.
➡️Asset: Specific pegged asset the vault is trading
➡️Epoch: Start & end date of the vault
➡️Strike: How far from peg the asset price needs to deviate to trigger a liquidation event & a payout to the Premium vault depositors.
Before the #UST collapse, you could have used #Y2K to hedge your UST position or speculate on the de-peg
For instance, let's say that this vault monitors $UST for 30 days with a strike price of $0.97
For instance, let's say that this vault monitors $UST for 30 days with a strike price of $0.97
Users who purchased insurance will receive the collateral $ETH that was placed by speculators if #UST depegs to $0.97.
On the contrary, speculators who put #ETH into the vault will generate yield & collect the premium from the insurance purchasers
On the contrary, speculators who put #ETH into the vault will generate yield & collect the premium from the insurance purchasers
5- At launch which token will be available?
The following tokens will be introduced at launch and will be represented by vaults on Y2K:
$DAI
$MIM
$USDC
$FEI
$FRAX
The following tokens will be introduced at launch and will be represented by vaults on Y2K:
$DAI
$MIM
$USDC
$FEI
$FRAX
6- More information about Y2K
Website: y2k.finance
Medium: medium.com/@Y2KFinance
Discord: discord.com/invite/y2kfina…
Website: y2k.finance
Medium: medium.com/@Y2KFinance
Discord: discord.com/invite/y2kfina…
7- If you liked this thread about Y2K Finance, do not forget to like (❤) and RT (🔁) my first tweet!
You can follow me @Moonshot211 for new threads
You can follow me @Moonshot211 for new threads
https://twitter.com/Moonshot211/status/1579859215333863425?s=20&t=-kiFpI_VWu9VIwmslflNbg
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