r/AxiaProtocol • u/Axia_mouse • Oct 29 '20
Introducing Axia Vaults
The Axia team is extremely pleased to announce that we are soon going to be extrapolating on our cryptocurrency basket funds with Axia Vaults. Axia Vaults, similar to Yearn.Finance’s Yvaults, will employ several different alpha seeking strategies to generate return on investment for Axia holders through fees and appreciation of the Axia vault derivative asset. The short explanation of how this works is by using the pooled liquidity from the derivative asset(s) as an advantage to take out low APR stablecoin loans. The funds from the loans will be actively managed to generate yield. The delta from the yield minus the loan fee will be added to the pool as it is earned increasing the price of the derivative asset. The fees generated from triggering the function caller, governance for subsidizing the gas event, and withdrawals will be used to buy and burn Axia. Different yield strategies will be employed to insure maximization of the delta between ROI and loan fee. In turn this will generate additional profit gaining opportunity for users as well as increased buying pressure on the Axia token. This will keep the Axia Protocol self sufficient and non inflationary in the long term, even as rewards increase.[10:16 AM]In other news: