Yaka Finance is a key part of Sei, focusing on making DeFi better. It’s like a special market and launch platform for DeFi projects. Sei is fast at processing transactions, and Yaka Finance wants to use this to make Sei even better. They’re working on a project that includes a flexible market and a platform for launching new DeFi projects, all designed to work well with Sei’s features.
Yaka Finance and the Sei Foundation are working together. They’re using Sei’s funding and Yaka’s ideas to improve DeFi on Sei, aiming to go beyond usual DeFi markets. Yaka Finance wants to be the main place for DeFi activity on Sei, focusing on real-world assets and supporting Sei’s goals both now and in the future.
The partnership between Yaka Finance and Sei is strong. Yaka Finance isn’t just helping Sei’s DeFi area; it’s making Sei’s strong points even better, changing how Sei is seen in the larger DeFi world.
The ve(3,3) Model
Cryptocurrency markets thrive on liquidity and aligning everyone’s interests is crucial. Standard decentralized exchanges (like Uniswap) struggle with keeping liquidity providers (LPs) and token holders motivated. The ve(3,3) model that Yaka Finance uses solves this by introducing a new system for fees and incentives. This system helps keep the value of governance tokens stable by encouraging holders to lock their tokens, which reduces the urge to sell and keeps rewards attractive.
The ve(3,3) model specifically aims to encourage LPs who get rewards in a way that tends to increase supply, while also managing the tendency to sell off these rewards. Yaka Finance’s approach builds a system that supports both growth and stability, giving predictable rewards. This involves:
- Rewarding LPs with governance tokens they can use.
- Giving trade fee benefits to those who lock their veTokens.
- Allowing different distribution of rewards, which lets protocols decide how to allocate rewards to certain pools.
Everyone involved in the Yaka ecosystem benefits from this model. veYAKA voters get to choose pools with a lot of activity or those with extra incentives. The system of fees and rewards ensures fairness. Liquidity Providers encouraged by YAKA rewards, which they can lock for more benefits. Traders benefit from less price difference and better trading algorithms, while protocols can use shared liquidity, efficient trading, and have the power to encourage liquidity with extra rewards. This helps them manage their resources better.
Fees Of Yaka Finance
At YAKA Finance, users can swap different tokens, just like other decentralized exchanges (DEXs). The trading price and slippage depend on the total value in the liquidity pairs and market rate balancing through arbitrage. YAKA has two types of Liquidity Pools, each with a different swap curve:
- Volatile (UniV2-Style) Pools: Here, tokens are paired with equal dollar values. The swap curve used, x * y = k, is designed for these pools.
- Correlated (Andre-Style) Pools: These pools use a stable swap curve for near-zero slippage, honoring Andre’s approach to stable swaps. The curve is: x3y + y3x >= k.
For swap fees, 100% of all fees go to $veYAKA holders. The default fees are 0.2% for Volatile Pairs and 0.01% for Correlated Pairs. These fees can be adjusted by the YAKA multisig to maintain competitiveness.
The $YAKA And $yeYAKA Tokens
Yaka Finance has two main tokens: $YAKA for utility and $veYAKA for governance, which is unique as it’s an NFT (non-fungible token). Liquidity providers earn $YAKA, and anyone holding $YAKA can lock them to get $veYAKA, which also increases their voting power in governance decisions. The longer the lock period, up to two years, the more $veYAKA and voting power you get.
The initial supply of $YAKA token is 200 million with a share of 30% to community, 40% to partner protocols, 15% to the team, 5% to genesis liquidity pool and 10% to token sale.
$veYAKA holders play a big role in Yaka Finance. They can vote on weekly decisions, control where trading fees and bribes go, and participate in governance. They earn from the trading fees and bribes of the pools they vote for, and also get regular $veYAKA distributions.
The Fair Launchpad Model And The Launchpad Plugin
In the YAKA Finance ecosystem, their vision goes beyond being a leading decentralized exchange. They aim to make YAKA the go-to launchpad for new and promising projects on the Sei network. YAKA Launchpad is all about supporting project builders and introducing them into the ecosystem in a clear and straightforward way. This platform helps bridge the gap between projects seeking community support and community members eager to get involved in promising projects from the start.
YAKA’s launchpad model is designed to be fair, giving everyone an equal chance to get tokens before they hit the market. The details of each token sale, like the maximum amount to be raised and participation requirements, are shared in advance. The token price might be fixed or determined through a price discovery mechanism, where the price rises as more funds are raised.
A key feature of YAKA Launchpad is its plugin for veYAKA holders. This plugin allows veYAKA holders to access benefits from projects launched on the platform. However, simply holding veYAKA isn’t enough; it must be allocated to the plugin. Once allocated, holders can still earn from veYAKA rebases but not from swap fees and bribes.
The plugin works on a 30-day cooldown system. Once you allocate veYAKA to it, you can’t remove it for 30 days, and each new allocation restarts this timer. The benefits you get are tied to how much veYAKA you allocate. It’s worth noting that if more veYAKA is allocated to the plugin overall, each user’s share of benefits decreases, and vice versa. The final allocation rate may be higher than shown due to redistribution of any excess veYAKA.
3, You’ll get your test net SEIs in 1-2 minutes. Now you can make the swaps. Go to the Swap on the Yaka page and do the next swaps in order:
NOTE: Lower gas fees from the default to 1150000, or if the swap is rejected, do it to 2150000. You can do that in your wallet by clicking “Show additional settings” by the gas choices. This is key at every swaps to keep enough SEI to pay for gas fees.
- Swap 0.03 SEI for YAKA
- Swap 0.03 SEI for USDC
- Swap 0.03 SEI for USDT
- Swap 25% of your USDC for USDT
- Swap 25% of your USDT for YAKA
4, With the swaps you get the amounts you need for adding to each liquidity pool, so you can earn “Providing Liquidity in 4 Specific Pools” badge. To do this deposit, click “Liquidity” -> “Pools” and enter in the following pools:
- SEI/YAKA: enter half your Yaka or less
- USDC/USDT: one third of your USDT or less.
- SEI/USDT: one third of your USDT or less.
- USDT/YAKA: remainder of your USDT.
5, Finally complete extra 15 swaps from 0.01 SEI to YAKA. And just don’t forget lowering the gas fee to 1150000 or 2150000.
These steps take about 15 minutes and you collect all the available 410 points. However if you go to the “Airdrop” page you can find a referral link which guarantees you 5% from the points your referrals collected. Also you can earn benefits by doing the Zealy campaign for the Yaka Finance project with straightforward tasks. And don’t forget to come back later as we update this article after the project makes available their extra features to earn extra badges!
EXTRA TIP: You can claim 5 SEI with your connected discord every 24 hours so you can make extra wallets to participate in the airdrop, and you can also use your first wallet’s referral code for the additional wallets to pump it up. To do this you can easily add extra wallet in your Compass wallet.
Featured image source: medium
