Eden Network has announced the launch of yyAVAX, a liquid staking product, in partnership with Yield Yak and Geode Finance on Avalanche. The new product launched is a yield-bearing derivative awarded to AVAX token stakers.
Native tokens are often required to be staked by users to secure the network. The equation quotes that the higher the tokens are staked, the higher the network security.
It sounds too good, especially when the security of the network is concerned; however, staking tokens takes away the opportunity for users to participate in DeFi, which carries the potential to generate better returns than Proof-of-Stake staking rewards.
Staked tokens are locked and illiquid, thereby not allowing users to expand their participation for better returns.
yyAVAX looks into it and solves the problem by issuing a derivative token that can be used in DeFi. By aligning incentives of the users, the liquidity staking product not only allows users to increase the network’s security but also encourages them not to miss the chance of getting on board with the DeFi offerings.
AVAX staked on the network will automatically convert into yyAVAX of equal value. The current deposit cap is 100,000 AVAX, and this will be eventually removed after increasing in the future.
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The deposit cap has been fixed to ensure that liquid staking and yield-generation infrastructure work as planned. yyAVAX could be integrated into the Avalanche DeFi ecosystem in the coming time, allowing users to earn further yield.
Every partner involved in the development and integration of yyAVAX has a crucial role. To start with Eden Network, its key responsibility is to amplify the yield to provide users with returns above the standard mark of staking rewards. The yield generation engine of Eden Network will have a larger role to play in ensuring that the yields are amplified.
Yield Yak provides a user liquidity staking user interface as the premier auto-compounder and one of the most trusted brands on Avalanche.
The backend infrastructure of yyAVAX is powered by Geode, which is also responsible for providing smart contracts.
Eden Network has partnered with Castle Crush to secure key validation services to launch more products and services on multiple blockchains, including Ethereum 2.0.
Eden Network supplies a backend validation framework for its upcoming Castle Candy subnet as a multi-chain infrastructure provider. Additionally, Eden Network also supplies the liquid staking product of Yield Yak.
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Eden Network operates on Ethereum as Eden Rocket RPC to provide DEX traders with transactions resistant to MEV and NFT traders with open mint priority.
Yield Yak gets the best prices to its users with zero aggregator fees. Geode Finance backs DAOs, enabling them to provide liquid staking solutions to their users. Geode Finance also provides its staking token derivative and exit liquidity, opening up the opportunity for vastly improved yields and capital efficiency for users in the DeFi space.
