Announcing the Composable Vault Strategies migration to Mosaic Phase 2
Disclaimer: Information as of Jan 26, 2022. For the most recent updates, dive into our comprehensive documentation here.
In preparation for Mosaic’s Phase 2 launch, Composable Finance announces the conclusion to its Angular emissions program. Users who participated in the initial vault strategies will soon be able to migrate their assets to Mosaic once Phase 2 goes live in February, where they can earn attractive yield by providing liquidity in the cross-layer asset transferal system’s single-sided vaults, most importantly on stablecoins and wETH.
In addition to the fees that liquidity providers (LPs) can earn from users transferring tokens via Mosaic, Composable will be incentivizing asset migration with over 80% APY in boosted rewards on stablecoin and wETH vaults. Ahead of Mosaic’s phase 2 launch, the migration process will soon be displayed on the strategies page with a clear breakdown of the initial steps for users to ensure a smooth transition.
Rewards for migration
The intention behind our vault strategies was to give users yield exposure while supporting our goals of acquiring parachains on Kusama and Polkadot. Now that we have successfully achieved these milestones, we have planned the migration of our vault strategy funds to support the second phase of Mosaic — a next-generation bridge and liquidity layer leading us towards our vision of building a chain-agnostic DeFi ecosystem.
Mosaic consists of a network of bridges powered by machine learning-based forecasting technology to ensure liquidity is balanced at all times. While offering users an efficient bridging solution, Mosaic also enables attractive yield-earning opportunities when providing single-sided liquidity offering users a similar experience to the original Composable vault strategies.
In addition to earning fees on stablecoins and assets such as wETH without impermanent loss, users who participated in the original Composable vault strategies will also receive incentives in the form of LAYR tokens to incentivize a smooth migration. Hence, we see the migration as a mutually beneficial transition that allows Mosaic to launch with sufficient total value locked (TVL) while rewarding our users for continuing to support our core products.
Our in-depth analysis of the Mosaic PoC has demonstrated that liquidity providers can expect minimum returns of 10% annual percentage yield (APY) when providing USDC or wETH liquidity. This yield provides improved returns to the original Composable vault strategies. On top of the migration incentives and fees that users will earn, Mosaic’s LPs will also have the opportunity to earn tokens from protocols that leverage the Mosaic SDK, such as Instrumental Finance.
Getting to 80% APY
Breaking down the incentives further, Composable will distribute 0.5% of LAYR supply to users who migrate their funds in the next two weeks. This incentive reflects an 80% annualized return, based on a conservative valuation of $250 million fully diluted value (FDV) for LAYR and assuming the entire $40.8m of TVL is migrated.
After the migration which we expect to commence from February when Phase 2 of Mosaic will go live, vault strategy stakers will have more yield opportunities ginning that Mosaic will be launching as a pallet implemented onto Picasso’s runtime. We expect that this pallet integration will serve as the gateway for the Ethereum Virtual Machine (EVM) ecosystem to bridge to Dotsama, opening up a myriad of new yield earning opportunities.
Through these internal adjustments, Composable is setting both its projects and supporters up for success. We appreciate everyone who has contributed to our vault strategies up to this point, and we look forward to providing more yield as our infrastructure and projects progress.
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