Y3D V2 Overview

Dear Y3D Families. Yesterday, we announced the implementation date of Y3D Pool1 Loop Mining and Pool2 Halving. Today we are going to give you a preview of the features and gameplay of the upcoming Y3D V2 version. You can also get a sneak preview on Ethereum’s Rinkeby test site by visiting the address below.
https://y3dv2-project-0916.netlify.app/y3dv2/swap

Historical Review

In the past month, the Y3D community launched 4 sets of mining products (Pool1, yyCrv, yswUSD and yUniswap-USDT-ETH) and opened 2 pools (Pool1, Pool2), releasing a total of 2000 Y3D tokens. At the peak, all pools had approximately over 8m USD worth of tokens being mined at the same time.

Our community has been accepted by DeBank, and the new snapshot page is under community review.

Introduction to Y3D V2

We have observed that the market itself tends to reward value investors with a long-term strategy that can take profits when the market is too blind, and find the right value when the market is in the doldrums. The upcoming Y3D V2 is an extension of the gameplay proven in Y3D Pool1 to any ERC20 token, where users can create custom y_3dTokens via Y3D factory contracts, just like creating Uniswap pairs. The controlled vault contract, which we now refer to as GameFi.
We use the notation y_3d to distinguish it from our governing token y3d. For example, a user can create a yUSDT3d Token by using the USDT Token as the underlying asset.

Description of terms

• uToken: Underlying token, which is the user’s principal.
• y_3dToken: Passbook asset, also the certificate for users to get back the underlying asset, the price of which is monotonically increasing relative to the underlying asset, which is essentially a profit-sharing token model.
• yToken: financial asset, which is the financial strategy of uToken, each y_3dToken can choose different financial strategies. For example, yToken in yearn, iToken in YFII, fToken in Harvest, yyCrv, yswUSD in y3d-v1 can be considered as a financial asset. yToken can exist independently of Y3D, or it can be null, which means that the corresponding yToken is a financial asset. There is no corresponding financial strategy for uToken. The user does not hold yToken assets directly, but rather by contract.
• P3D Ratio: When user returns y_3dToken and withdraws the underlying assets, the management fee, unlike yearn, is distributed to all other y_3dToken holders in Y3D as the profit of contract. This mechanism rewards long-term coin holders and prevents Front-Running attacks at the same time. In fact, surprisingly, the P3D mechanism is also used in many serious products, such as the handling of transaction fees in Uniswap, which is actually a P3D handling fee.
• Consul: Each current manager of y_3dToken can be a private account, a multi-signature address like YFII, a timelock contract like sushiswap, or a DAO contract like compound and anagon.

Swap

One of the problems with the Y3D project has always been the lack of user interface. In order to reduce the learning cost for the user, we have simulated Uniswap’s user interface as much as possible, but with different features.

Let’s illustrate how the exchange works in the yUSDT3d example shown above, where the respective terms above correspond to.
uToken: usdt.
yToken: yUSDT.
y_3dToken: yUSDT3d.

When the direction of the transaction is positive, the swap button is stake, which means the user will get the USDT and the corresponding yUSDT3d. when the direction of the transaction is opposite, the button is unstake, which means the user will get back the yUSDT3d and get the USDT and interest.

Gov

The governance page allows users to look up information about any y_3dToken, lock and hold information, currency prices, P3D renewal fees, consul types, and current investment strategies. Over time, this page will be improved.

Create

There is a problem with using yearn.finance though, with yearn.finance you are part of a shared pool of liquidity. This means smaller investments can’t take importunity of flash interest moments. Let’s go through an example;
Let’s say the DAI pool is currently at $50k and sitting at Fulcrum @ 8% APR. There is an opportunity at Aave @ 10% APR, but the maximum amount that can be invested @ Aave is $20k. The current yearn.finance pool implementation will not move the funds, since it calculates it is earning more APR at Fulcrum at $50k DAI, than it would if it moved the $50k to Aave, since this would decrease the Aave APR to 7.5%.
But if you were a solo investor, and you had $10k, you could take advantage of this opportunity. So the goal of this article is to walk you through deploying your own private version of yearn.finance so that you can take advantage of customized opportunities.
Now the process does require some technical knowledge, but I will try to explain as much as possible.
— — How to deploy your own yearn.finance

In the article above, Andre mentions a design flaw in YFI, the inability of a yVault to create different strategies for the assets in the vault, based on users’ different risk preferences. The biggest difference from traditional DeFi aggregators like YFI and Harvest is that users can create their own aggregators in Y3D — i.e. unique y_3dToken, or even y_3dToken with different parameters for the same underlying asset, picking different financial strategies. (It may even be detrimental!)

FAQ

Is my capital at risk.

This depends on how decentralized a y3dToken’s consul is and the risk factor of the investment strategy. When the Regent of a y3dToken is a private account, the safety of your money is at that person’s discretion, and when a Regent contract is a timelock, the community has at least enough time to review it and you can react to the danger before then. When the consul is a black hole, there is no one left to change the current strategy, and that means the y3dToken loses the ability to make changes when a higher apy strategy comes up in the future.