- Can you please start with a brief introduction about YAO cash?
We have a lot of updates and upcoming news regarding about YAO_cash.
yaoCASH is the world’s 1st cross-chain asset backed fractional algorithmic stablecoin.
Imagine the current issues with the world of cryptocurrency. Many stablecoins exists. Yet many issues remains; centralization such as Tether and potentially risky for many investor.
We believe that YAOcash will be able to solve this problem with a great model; hybrid between asset-backed and fractional algorithmic through smart contract price oracle.
YAOcash is open-source, permissionless, and cross-chain — on Ethereum, Binance Smart Chain & Huobi ECO chain.
I’m curioused why do you choose this topic?
Good question Kris. I’m a HUGE believer in decentralization and also DeFi movement.
Looking back at the short history of crypto. It is VERY obvious that DeFi is the next evolution for crypto.
Aside from the capital gain, appreciation of price and trading use cases, for the 1st time DeFi actually enables real actual use case for crypto.
I call this Crypto 3.0 = DeFi
As DeFi matures in the next 12–24 months, we need to have a foundation of solid crypto_enabled stablecoin for this to scale to the masses
Thus, yaoCASH was borned
This idea was discussed internally and brainstormed among many expert in crypto
WE believe that community enabled through governance token, mixture of asset-backed (BTC, ETH, YAO, stablecoin) and mix with fractional algorithmic model through DeX price oracle from Uniswap and Chainlink, YAOcash will be flawless.
In summary, DeFi is the next evolution in crypto 3.0. With the emerging centralized banking digital currency (CBDC), there needs to be a cross-chain stablecoin that fits 2 main criteria for this to be successful; asset-backed and fractional algorithmic.
On with this model, then the community could trust this and make this into a great scalable and most importantly, TRUSTABLE stablecoin!
- How does it work? What problem does it solve?
The main problem and bottleneck for stablecoin scalability.
1. Algorithmic stablecoin are difficult to grow and scale, and very volatile which reduce confidence in their usefulness as scalable stablecoins.
Victor Lee, [16.04.21 15:12]
2. Asset-backed stablecoins are hard to incentivize liquidity, display centralization and consist of counterparty risk.
Collatralized stablecoins also either have custodial risk or require on-chain overcollateralization.
This is a hard to solve problem for centralized-asset-backed stablecoin. Many are trying to use this route to solve the problem. But will eventually faced a problem of too much asset required.
3. On the algorithmic stablecoins, the prices aren’t very stable. They don’t do what they were designed to perfectly.
They can get stuck under $1, when the price to buy demand, doesn’t make sense. The mechanics of these coins aren’t effective.
There are many who uses such mechanics to get into rebasing and profit from the token holders. Which is a very bad experience for the community.
So, our solution is to solve all of the above with yaoCASH!
yaoCASH is the 1st cross-chain, asset-backed & fractional algorithmic stablecoin that implement design principles of both to create a highly scalable, trustless, extremely stable, and asset-backed.
yaoCASH aims to transition to a more decentralized stablecoin (or a basket of digital assets), which can’t be frozen!
This will create so much confidence in the community and token holder!!
- Now we got YAO and yaoUSD, What’s the role of them in ecosystem?
Great question! I believe the community would like to understand more how they could participate in YAO and ecosystem.
YAO is the DeFi protocol token of YAO network that accrues value and utility of the entire yaoCASH ecosystem.
It is meant to be transparent, useful and hold rights to govern the excess collateral of the protocol.
YAO also enabled liquidity staking rewards for farmers and incentives the YAO ecosystem. This will create value for the YAO token holder.
yaoUSD is the stablecoin that is the core of the project!
In short, YAO is the governance token model that will bring community participation, governance, utility and value accrued to the yaoCASH ecosystem.
yaoUSD is the USD denominated stablecoin that is backed by asset (cryptocurrency; BTC, ETH, YAO, stablecoin) and also fractional algorithmic using pricing oracle data from Uniswap and Chainlink!
- Any unique part about this project? Compared to other stablecoins, any advantages to it?
Unique-ness about yaoCASH are:
We are using a proven working model; hybrid between asset backed and fractional algo model. Using the same model as Uniswap AMM constant product pricing function. This is already proven to be a working model and calculation of the pricing. It is simple and it works.
We are very strong believers that stablecoin should be asset-backed (basket of cryptocurrency and asset) such as BTC, ETH, YAO and stablecoin, this provides a truly decentralized asset backed stablecoin.
Otherwise, we will end up with the same issue of monetary inflationary coin that can be minted anytime.
We are also using decentralized price oracle from Uniswap and Chainlink, thus the price manipulation is reduced to the minimum resulting in an innovative approach to stablecoin price discovery.
This is crucial to ensure the price remains stable yet mirrors the actual price using Uniswap and Chainlink. This will be less risky and also robust in the stability of the price of yaoUSD!!
These are some of the advantages for yaoUSD!
1. It is a mixture of fractional algorithmic and asset-backed. Which makes it unique.
2. It is cross-chain compatible to create a seamless experience for users.
- About the price equilibrium, I find that your project uses arbitrage to keep the price stable, could you simply explain it?
There are 2 core mechanism we use to arbitrage between price stability. This is crucial for the overall healthiness of the ecosystem.
Number 1: Arbitrage opportunities to keep the price stable.
yaoUSD can always be minted and redeemed from the protocol for $1 in value. This allows arbitrageurs to balance the supply and demand of yaoUSD.
This is a crucial step to ensure great price discovery and opportunity for arbitraguers to balance the system and price
Number 2: Collateral ratio rebalancing.
Protocols needs to adjusts the ratio automatically during yaoUSD expansion and retraction. This is the crucial step in the calculation and the formula to make this works!
During expansion, more YAO must be deposited to mint yaoUSD while during retraction, the protocol auto re-collateralized and increased the ratio.
By doing this, the ratio of the asset vs price will reach back to equilibrium!
- How does YAO governance token work?
YAO governance token is the core component for the YAOcash project.
Without this component, how can we call this project as a DeFi project?
Essentially, $YAO tokens are governance tokens. This is to release every block based on % of LP funds into $YAO smart contract pools. Imagine everyone is a banker and able to make decision about the direction of yaoUSD!!!
$YAO tokens are essentially “tokens” on a smart contract that are programmatically developed and enforced based on fixed criteria written on mandate.
These are EVM compatible tokens. Which means it is erc20, bep20 and heco20 compatible! Thus, cross-chain compatible tokens.
The governance and these rules can be changed/updated through a consensus voting mechanism built into the smart contract of YAO.
The best way to acquire a $YAO token is through participating in the staking of funds into a $YAO product’s smart contract. This is by staking YAO to the governance smart contract to facilitate the minting of yaoUSD!
- Any plans for the next step ?
Our yaoCASH ecosystem is very robust and we have already start to plan for the yaoUSD development.
Q2 2021 Kickoff:
- Ideation & research on yaoUSD stablecoin model.
- Official launch on DeX and CeX.
- liquidity Mining kickoff.
On the next quarter of Q3 2021, these are our beta launch plan:
Q3 2021 Beta launch:
1. yaoUSD v1 launch with liquidity staking incentives.
2. Partnership with other DeFi AMM pools.
3. Integration with Chainlink and Uniswap v3.
On the last quarter of 2021 Q4, these are our plans:
Q4 2021 Expansion:
- yaoUSD v2 assets to include bonds and other emerging assets.
- YAO to be included in decentralized price oracle ecosystem.
- Adding additional assets; ie, yaoSTOCKS
We think we can go into 2022 with massive traction and success with YAO through:
Q1 2022 Scaling:
- yao_<stablecoins> international.
- Working with other currencies for expansion internationally; ie yaoEURO, yaoSGD etc.