🎧 Stablecoin Shake-Up: Yama Finance's Edge
Round Table Recap: April 10th, 2023
Russian DeFi
April 24, 2023
👑 In a recent Twitter Space, King, a crypto enthusiast, discussed his journey in the space, the potential of crypto becoming the reserve currency, and the importance of omni-chain stablecoins.
💰 He also talked about Yama Finance, an omni-chain stablecoin focused on leverage, and its plans for the future, including onboarding different collateral types and launching on Fuel and Eclipse.
💹 King emphasized the benefits of finding uncorrelated yield and parking investments in assets that are comfortable to hold for the long term.
You can listen to the full audio here.
Keep reading 🍿👇️
Panel
• Kadeem Clarke @Crypto_Clarke
• King @0xgodking
Introduction
• King started his crypto journey in 2017.
• He was on/off with the cycles.
• COVID gave King time to delve into the different chains and aping on new protocols taking part in the hype.
• He said that when it comes to rotating from chain to chain and finding alpha, he paid attention to bridging infrastructure and how bridges could be adequate for our multichain feature.
• He mentions how most protocols have monolithic or single-chain deployments rather than multichain and omni-chain deployments.
• King talks about how he and Goliath have iterated ideas related to smart contracts and cross-chain yield aggregators and developed Yama Finance.
• They collectively believe that omni chain stablecoins will be necessary over the following months.
What got you hooked on crypto?
• King explains that crypto enabling people of all backgrounds to come together greatly enticed him.
• He says that interacting with people from under-developed countries opened his eyes to crypto’s possibilities.
• He mentions that hearing stories of how crypto helped people avoid inflation using USDT and USDC while receiving payments instantaneously and abroad in a liquid system was a massive incentive for himself and his peers.
What are the chances of crypto becoming the reserve currency?
• King jokingly talks about how if he knew the answer, he would be wealthy right now.
• He says that crypto can play a massive role in the upcoming years and months with the geopolitical circumstances going on right now.
• Furthermore, he states that the correlation between Trad-Fi and crypto is still clear and that he doesn’t see this changing any time soon.
• However, he says he sees crypto as a relative store of value compared to some emerging economies' fiat.
🎧️ Exploring the Possibilities of Crypto Becoming a Reserve Currency
In terms of the stablecoin market, where do you see that going?
• King explains how Circle’s USDC have already said they will be using CCTP, meaning they will go omni-chain.
• This means that instead of using traditional token bridges with token pools, they’ll be simply minting and burning using information bridges.
• USDT, DAI, and other stablecoins haven’t announced any plans around this, so USDC is the only established stablecoin that has announced they’re going omni-chain.
• King explains that this is a big deal because traditionally, stablecoins have traditionally been bound by token bridge liquidity pools. Getting rid of this means you are chain agnostic, so the user doesn’t have to care about chain/on-chain basis liquidity.
• King says that in the future, he believes that all stablecoins and tokens, in general, will be omni-chain because it shows conviction on VMs, L2s, and L1s which require unified liquidity.
🎧️ Exploring the Future of Multi-chain Stablecoins 👇️
Why is omni-chain vital for investors?
• King says that omni-chain tokens are interesting because they are faster in settlement and are easier to bridge instead of relying on traditional token pools.
• He says bridging fees can be avoided, making deployments more accessible and cheaper.
• Furthermore, Yama Finance will be live on Fuel from day 1.
• This means users can instantaneously bridge Yama the stablecoin, with 0 costs to you.
• King says this works very well, particularly with L2s, because most Optimistic L2s have a 7-day bridge back, and using omni chain stablecoins prevents you from being subject to these waiting times.
What are you building?
• King is building Yama Finance, which is an omni chain stablecoin focused on leverage.
• This means they focus on providing the most value to users through leverage on the CDP side.
• Having been in the space a lot, his team views leverage as a huge selling point for CDPs.
• Furthermore, he explains that using omni chain and burning instead of locking up liquidity pools helps secure liquidity.
• At Yama, King does more of the meeting stuff while Goliath acts as a dev.
• King talks about how they plan to launch on Fuel and Eclipse on Arbitrum in the coming months.
🎧️ Yama Finance's Plans for Fuel and Eclipse Ecosystems 👇️
• From the CDP standpoint, King explains how they have never seen a stablecoin go higher than 5x leverage on most assets and Yama Finance offers higher leverage wishing to trump this.
• Furthermore, they pay significant yield to USDT lenders, the highest yield in crypto right now.
• King explains how they currently strictly offer USD stablecoins, but if there is demand, they will switch and offer differently.
🎧️ Yama’s omnichain stablecoins and leverage 👇️
What are some of the risks, and how to mitigate them?
• King says that bad debt always occurs in traditional lending markets when assets fall quickly in price, leaving the protocol in bad debt.
• For Yama Finance, King says they have liquidated fast because of the systemic risk of BTC or other cryptos falling too much in price.
How are you parking your investments?
• King explains that it is beneficial to find uncorrelated yield that is not correlated with the markets in uncertain times.
• Yama is an excellent example of this. King emphasizes that whether GOP goes up or down, USDT lenders are still earning yield from the farms.
• He explains that parking your money in assets you’re comfortable with not touching until the long term.
• King says that the Euro-pegged stablecoin by Circle Labs, Swiss Franc CDP, and other RNB stablecoins launching are alternatives to the standard dollar-denominated stablecoins if something were to happen to the dollar.
• Furthermore, a gold-backed stablecoin to hold value is also suggested by King.
🎧️ Exploring Uncorrelated Yield for DeFi
6–12-month plan
• Yama will be onboarding different collateral types for borrowers and lenders.
• Furthermore, they will launch Fuel and Eclipse development in those ecosystems.
• King explains that deploying on new chains will also come further down the line.