DEFI

Steaker incubates cross-chain aggregator XY Finance, join the community for a chance to get Huoxie NFTs.

2021/8/26

The cross-chain aggregator XY Finance, incubated by Taiwan-based cryptocurrency asset management firm Steaker, officially launched its beta testing on the 26th. Angel investors in this project include lending protocol C.R.E.A.M. Finance, venture capital firms Dragonfly, Divergence, Lemniscap, Evernew, and IVC, as well as startup accelerator AppWorks; Fortune shareholder Chaval Jiaravanon, Chainlink VPE, and key members from sustainable protocol Perpetual Protocol. This article will introduce the issues XY Finance aims to solve and its core functionalities.

Table of Contents

What problem does XY Finance aim to solve?

In recent years, various public chain ecosystems such as Ethereum, Polygon, BSC, Fantom, xDAI, HECO, Avalanche, and others have flourished. DeFi users mostly hold digital assets on different chains, leading to a growing demand for "cross-chain asset conversion."

XY Finance's focus is on achieving fast, secure, and decentralized cross-chain transactions and staking.

What are X and Y?

XY Finance's solution consists of two components: X Swap and Y Pool. The former serves as a cross-chain coin exchange aggregator, while the latter provides liquidity rewards.

X Swap: In the same blockchain, there are already aggregators like 1inch that match the best prices in different coin exchange protocols on Ethereum. In a multi-chain scenario, there are also various cross-chain coin exchange protocols like AnySwap and O3 Swap based on Poly Network. X Swap's role is to find the best cross-chain coin exchange price for users in these cross-chain coin exchange protocols.

Y Pool: Similar to the 1inch aggregator mentioned earlier. XY Finance will also establish its own cross-chain liquidity pool and provide liquidity with Y Pool when there are better coin exchange prices. Liquidity providers can earn coin exchange fees. As of the deadline, Y Pool has not yet been opened.

A simple test of X Swap involves converting ETH on Ethereum to USDT on BSC. In the left window, you will see "Best Price," "Slippage," and fee structure, which includes Ethereum Gas Fee, cross-chain fees, and XY cross-chain aggregation fees.

The right window shows the best path for cross-chain coin exchange. In this example, it is handled by AnySwap: first, ETH is converted to the token SUPER on Uniswap v2 on Ethereum, then SUPER on Ethereum is converted to SUPER on BSC, and finally, it is exchanged for USDT on BSC through PancakeSwap.

X Swap also displays other paths to show you price differences. X Swap claims to only require two transactions to complete the coin exchange process. For technical details, see here.

XY Token Economy

XY Finance has introduced the governance token XY Token, whose value comes from the following sources:

The Treasury collects "X Swap transaction fees" + "20% of the coin exchange fees from Y Pool, with 80% going to liquidity providers." Sixty percent of the Treasury income is used to repurchase XY Tokens on the market.
Fifty percent of the repurchased XY Tokens by the Treasury are destroyed, and the other 50% is handed over to XY DAO, a decentralized autonomous organization, thereby expected to reduce circulating supply.
Similar to Curve's CRV locking mechanism, XY Tokens can be locked as veXY to earn better staking rates; veXY is also the certificate for governing XY DAO.

Since Y Pool requires liquidity, although the official announcement has not been made, there is a high possibility that XY Tokens will be used as rewards for Y Pool liquidity mining.

Cross-Chain Fear Triggered by Poly Network? Steaker Founder: Professional Technical Team Oversight

Due to the recent largest DeFi hacking attack in history on the cross-chain protocol Poly Network, although the incident has been resolved, the community still has a certain level of caution regarding cross-chain bridges. Interviewing Steaker founder Huang Weixuan on how to identify cross-chain platforms to enhance XY Finance's security, Huang Weixuan expressed confidence in security due to his background as a developer and having two Ethereum Foundation developers on the team, such as Kevin Chia.

According to XY Finance, they will continue to integrate official cross-chain bridges or pools with high trading volume in DeFi, GameFi/NFT on public chains.

Complete Community Tasks for a Chance to Get Meerkat NFT

XY Finance has also launched the Meerkat NFT Meerkat. According to the official statement, by joining the following communities, you have the chance to obtain:

Huang Weixuan stated that each Meerkat is unique, with random attributes and accessories. Various attributes will trigger different functions on XY Finance. Early Meerkat recipients will receive certain benefits, such as fee waivers, token airdrops, and more. Tasks for obtaining Meerkat in the early stages are simpler, while tasks in the later stages are more suitable for users familiar with DeFi.