(1/30)🧵
LSD TVL is over Lending TVL now, you want some protocol to hedge/ gamble?
This thread provides you with a deep understanding of @y2kfinance, let's dive in🔮
Likes/ Comments/ RT are welcomed🫡
LSD TVL is over Lending TVL now, you want some protocol to hedge/ gamble?
This thread provides you with a deep understanding of @y2kfinance, let's dive in🔮
Likes/ Comments/ RT are welcomed🫡
(2/30)👹Background Info
Launch on @arbitrum
Launch date: 2022/10
Founder: @Crypwalk_240 , @0xdrej
Incubation & Investor: @neworderDAO , which is the incubation of @redactedcartel
Launch on @arbitrum
Launch date: 2022/10
Founder: @Crypwalk_240 , @0xdrej
Incubation & Investor: @neworderDAO , which is the incubation of @redactedcartel
(3/30)Y2K has two products
💥Earthquake is where people participate in a depeg insurance.
🔥Wildfire is the secondary market of Earthquake and it’s coming soon.
This mindmap can help you understand @y2kfinance
💥Earthquake is where people participate in a depeg insurance.
🔥Wildfire is the secondary market of Earthquake and it’s coming soon.
This mindmap can help you understand @y2kfinance
(4/30)
💥Earthquake
Positions in Earthquake are defined as an $ETH deposit in one of two types of vaults
🟡Hedge vaults
🔴Risk vaults
💥Earthquake
Positions in Earthquake are defined as an $ETH deposit in one of two types of vaults
🟡Hedge vaults
🔴Risk vaults
(5/30)
🟡Hedge vaults -Depeg insurance buyer
Users' $ETH deposit acts as an insurance premium
🔴Risk vaults -Depeg insurance seller
Depositors collect premiums from the Hedge vault while creating a market for depeg protection for the Hedge vault.
🟡Hedge vaults -Depeg insurance buyer
Users' $ETH deposit acts as an insurance premium
🔴Risk vaults -Depeg insurance seller
Depositors collect premiums from the Hedge vault while creating a market for depeg protection for the Hedge vault.
(6/30)
There are two parameters in every vault
⏰Epoch: Time of coverage, which is weekly or monthly.
📉Strike Price: Price where a depeg event is triggered.
Both parameters are pre-determined by the Y2K team.
There are two parameters in every vault
⏰Epoch: Time of coverage, which is weekly or monthly.
📉Strike Price: Price where a depeg event is triggered.
Both parameters are pre-determined by the Y2K team.
(7/30)
🔮Oracle
@chainlink is used to monitor underlying asset prices.
When the Chainlink oracle indicates that the strike price for a given vault has been hit, the vault will be closed.
This will initiate a transfer of Risk vault deposits to the Hedge vault.
🔮Oracle
@chainlink is used to monitor underlying asset prices.
When the Chainlink oracle indicates that the strike price for a given vault has been hit, the vault will be closed.
This will initiate a transfer of Risk vault deposits to the Hedge vault.
(8/30)
🎭Scenarios
🔺Vault does not depeg
$ETH in the Hedge vault is prorated to the Risk vault as an insurance premium.
🔻Vault depeg
$ETH in the Risk vault is prorated to the Hedge vault as an insurance payout
$ETH in the Hedge vault is prorated to the Risk vault
🎭Scenarios
🔺Vault does not depeg
$ETH in the Hedge vault is prorated to the Risk vault as an insurance premium.
🔻Vault depeg
$ETH in the Risk vault is prorated to the Hedge vault as an insurance payout
$ETH in the Hedge vault is prorated to the Risk vault
(9/30)
Y2K charges a 5% fee from insurance buyers regardless of the depeg event occurs.
If the depeg event occurs, Y2K takes an additional 5% fee from the insurance payout, which is the sweetest part🍬
Y2K charges a 5% fee from insurance buyers regardless of the depeg event occurs.
If the depeg event occurs, Y2K takes an additional 5% fee from the insurance payout, which is the sweetest part🍬
(10/30)
🪙Tokenomic
Their tokenomic is similar to @CurveFinance
🔸Users provide LP and lock the LP token for a long period and get $vlY2K.
🔸$vlY2K holders vote to decide the direction of emissions.(Bribery economic)
🔸$vlY2K holders share 50% of revenue of Y2K
Further dig🔨👇
🪙Tokenomic
Their tokenomic is similar to @CurveFinance
🔸Users provide LP and lock the LP token for a long period and get $vlY2K.
🔸$vlY2K holders vote to decide the direction of emissions.(Bribery economic)
🔸$vlY2K holders share 50% of revenue of Y2K
Further dig🔨👇
(11/30)
When you deposit $ETH into the Y2K vault, you will receive an ERC-1155 token that can be staked in the Farm to earn $Y2K emissions.
However, unlike Curve, you must provide liquidity on @Balancer with $Y2K:$ETH=80:20, which will result in a significant impermanent loss.
When you deposit $ETH into the Y2K vault, you will receive an ERC-1155 token that can be staked in the Farm to earn $Y2K emissions.
However, unlike Curve, you must provide liquidity on @Balancer with $Y2K:$ETH=80:20, which will result in a significant impermanent loss.
(12/30)
Afterward, you lock yr LP token into Y2K for 16/32 weeks to get $vlY2K.
The longer the locked period, the greater the benefit.
Then, you will have voting power to decide the emissions ratio of the Farm vault.
Being a loyal user will keep the Y2K flywheel in operation.
Afterward, you lock yr LP token into Y2K for 16/32 weeks to get $vlY2K.
The longer the locked period, the greater the benefit.
Then, you will have voting power to decide the emissions ratio of the Farm vault.
Being a loyal user will keep the Y2K flywheel in operation.
(13/30)
🥧Allocation
35% to LP
10% to Incubator
These figures seem fine to me.
🥧Allocation
35% to LP
10% to Incubator
These figures seem fine to me.
(14/30)
The incentive period is around 2 years, it’s too short in my opinion🤡
It’s 7.18% circulating right now, so it’s obviously #super #early #stage
The incentive period is around 2 years, it’s too short in my opinion🤡
It’s 7.18% circulating right now, so it’s obviously #super #early #stage
(15/30)
According to frijoles dune.
TVL is $2.31m
And $Y2K circulating is only 7% right now.
According to frijoles dune.
TVL is $2.31m
And $Y2K circulating is only 7% right now.
(16/30)
Y2K was launched on 2022/10 and has been operational for 5 months
Earned $544,203
😎61% of that coming from depeg events
🥸39% coming from premiums
Y2K was launched on 2022/10 and has been operational for 5 months
Earned $544,203
😎61% of that coming from depeg events
🥸39% coming from premiums
(17/30)
There have been four depeg events occurred.
🔸2022-11-08 MIM depeg
🔸2022-11-10 USDT depeg
🔸2023-01-28 wBTC depeg
🔸2023-02-15 stETH depeg
Only four times depeg event occurs, it brings 61% of the revenue of all time🤑
There have been four depeg events occurred.
🔸2022-11-08 MIM depeg
🔸2022-11-10 USDT depeg
🔸2023-01-28 wBTC depeg
🔸2023-02-15 stETH depeg
Only four times depeg event occurs, it brings 61% of the revenue of all time🤑
(18/30)
2022-11-08 MIM depeg
Hedger gains 1751.85/192.42=9.104, which is a #810.43% realized return.
@DigitsDao earned 99.52 ETH in this event
2022-11-10 USDT depeg
Hedger gains 2123.95/155.31=13.67, which is a #1267.55% realized return.
@DigitsDao earned 113.6 ETH in this event
2022-11-08 MIM depeg
Hedger gains 1751.85/192.42=9.104, which is a #810.43% realized return.
@DigitsDao earned 99.52 ETH in this event
2022-11-10 USDT depeg
Hedger gains 2123.95/155.31=13.67, which is a #1267.55% realized return.
@DigitsDao earned 113.6 ETH in this event
(19/30)
2023-01-28 wBTC depeg
Hedger gains 18.11/5.2=3.48, which is a #348.26% realized return.
2023-02-15 stETH depeg
Hedger gains1751.85/192.42=9.10, which is a #810.43% realized return.
However, it seems Y2K didn't use TWAP to avoid oracle manipulation
2023-01-28 wBTC depeg
Hedger gains 18.11/5.2=3.48, which is a #348.26% realized return.
2023-02-15 stETH depeg
Hedger gains1751.85/192.42=9.10, which is a #810.43% realized return.
However, it seems Y2K didn't use TWAP to avoid oracle manipulation
(20/30)
You can also refer to toubi dune to check every vault's details.
Something interesting you might see👀, like people put more bets on $BUSD will depeg
You can also refer to toubi dune to check every vault's details.
Something interesting you might see👀, like people put more bets on $BUSD will depeg
(21/30)
🔮Y2K is a super niche, super early-stage protocol.
🔸In 2023, regulators are cracking down on stablecoins.
🔸Shanghai update is expected to occur in 2023 Q2, some people believe that LSD will depeg.
👉Users are more likely to use Y2K for speculation.
🔮Y2K is a super niche, super early-stage protocol.
🔸In 2023, regulators are cracking down on stablecoins.
🔸Shanghai update is expected to occur in 2023 Q2, some people believe that LSD will depeg.
👉Users are more likely to use Y2K for speculation.
(22/30)
Although I believe this is a potential 50x protocol, the $Y2K price is too crazy right now.
Below is the FDV/TVL, you can see the ratio of Y2K is insane😬
Although I believe this is a potential 50x protocol, the $Y2K price is too crazy right now.
Below is the FDV/TVL, you can see the ratio of Y2K is insane😬
(23/30)
Some Q&A
1. How did Y2K solve the chicken and egg problem?
2. How did they bootstrap initial liquidity?
3. Other prediction markets have failed. What's Y2K's strategy?
Some Q&A
1. How did Y2K solve the chicken and egg problem?
2. How did they bootstrap initial liquidity?
3. Other prediction markets have failed. What's Y2K's strategy?
(24/30)
A1: Y2K try to use tokenomic to solve the chicken and egg problem.
Y2K creates a tokenomic that attracts users to LOCK their $Y2K back into their vault.
Once you lock your $Y2K into the vault, you become the chicken mama to ensure the flywheel run.
A1: Y2K try to use tokenomic to solve the chicken and egg problem.
Y2K creates a tokenomic that attracts users to LOCK their $Y2K back into their vault.
Once you lock your $Y2K into the vault, you become the chicken mama to ensure the flywheel run.
(25/30)
A2: In my opinion, they cooperate with DAO to gain initial liquidity.
My guess is based on their incubation is a famous DAO, and Digits DAO participated in Epoch 1 👀🔨
A2: In my opinion, they cooperate with DAO to gain initial liquidity.
My guess is based on their incubation is a famous DAO, and Digits DAO participated in Epoch 1 👀🔨
(26/30)
A3: Y2K's strategy to maintain the flywheel effect is to attract more users to their protocol, which is uncertain and resembles a Ponzi scheme. 👇
A3: Y2K's strategy to maintain the flywheel effect is to attract more users to their protocol, which is uncertain and resembles a Ponzi scheme. 👇
(27/30)
However, their real strength lies in offering a real yield to users.
Unlike other prediction markets where users pay a fee to gamble, users win/lose money and they walk away, they don’t have any loyalty to the casino.👇
However, their real strength lies in offering a real yield to users.
Unlike other prediction markets where users pay a fee to gamble, users win/lose money and they walk away, they don’t have any loyalty to the casino.👇
(28/30)
In Y2K, users gain $Y2K tokens and become owners of the casino, sharing 50% of the casino revenue.
This incentivizes users to remain loyal to the platform, making it a degen crypto way of ensuring user retention.
In Y2K, users gain $Y2K tokens and become owners of the casino, sharing 50% of the casino revenue.
This incentivizes users to remain loyal to the platform, making it a degen crypto way of ensuring user retention.
(29/30)
Okay, that's it for now, welcome to follow me, and discuss with me.
Keep learning in the bear market😇
Tell me your opinions:
@DeFiMinty
@thedefiedge
@DefiIgnas
@defi_mochi
@DeFi_Made_Here
@DeFi_Cheetah
@DeFi_Dad
@rektdiomedes
@WinterSoldierxz
Okay, that's it for now, welcome to follow me, and discuss with me.
Keep learning in the bear market😇
Tell me your opinions:
@DeFiMinty
@thedefiedge
@DefiIgnas
@defi_mochi
@DeFi_Made_Here
@DeFi_Cheetah
@DeFi_Dad
@rektdiomedes
@WinterSoldierxz
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