Advanced Smart Contracts: New Gen Yield Generating Products for DeFi 2.0
Configurable Smart Contracts to enable permissionless creation of Fixed Return Staking Programs
Bob: What does it mean? Give me one liner please.
Alice: Ok, here it is: Uniswap for fixed interest staking.
Bob: Wait! What?
Alice: It means anyone can use these advanced smart contracts to launch their own advanced staking programs that too on dedicated UI/UX of EasyFi!
Alice: Yes, first in the series is the Fixed Interest Staking Advance Contracts.
Karen: Hey, guys! I am a DeFi Founder. Can I use these contracts to offer structured fixed interest staking to my own community without getting into complex work of developing these contracts?
Alice & Bob: Yes, that’s just the start though!
Shantanu: Let’s learn more about these:
What team EasyFi says:
In our quest to build products that provide a wholesome experience to a DeFi user, we came across a specific issue. While every project has several incentivization offerings for their respective community and for the DeFi industry as a whole, none of the opportunities provide a fixed yield to the user for their deposits. There are multiple passive income and yield generation streams that provide variable incomes, however, if a user can get a fixed earning for their deposits, we believe that could be a game-changer in the DeFi space.
EasyFi took cognisance of this problem and started working on developing a series of permissionless advanced smart contracts that will enable the creation of programs that offer new possibilities including fixed interest to the users against their deposits.
The first step in this series is the launch of Fixed Interest Staking Programs.
What is Fixed Interest Staking?
These advanced smart contracts developed and deployed by EasyFi will enable users to generate a yield that will be fixed over a period of time. This means that every address participating in a fixed interest program will get a committed yield as per their individual contribution or deposit to a specific target pool size and duration.
This is in absolute contrast to the recently launched Flexi interest program, where the interest yield varies with the increase or decrease of the target pool of tokens. That is, in a Flexi-Interest program, the APR interest on the deposits is flexible in proportion to the token staking target. So if the APR is fixed at X% for a target pool of say Y tokens; if the deposits are less than Y tokens, then the APR yield increases and if the deposits are more than Y tokens, APR reduces.
However, for fixed staking programs, the users returns are fixed in proportion to their deposits in a specific target pool. So if you are depositing X tokens on a target of Y tokens, then the APY does not change. However, one needs to understand that the yield percentage is fixed based on the individual’s deposit in the pool and not the entire pool as a whole.
Tokens rewarded in these programs are of the same project — so if you Stake EZ — you Earn EZ.
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Bob: Wait, tell me in plain english. Does this mean I will earn X% committed fixed rate of interest for the period I deposited my funds on my deposit if you offer so?
Alice: Well, yes. Suppose you staked 100 EZ at 10% APR, you will get 110 EZ at the end of 1 year. No strings attached.
Bob: Awesome! Take my money bruh….!!
EasyFi: Pushing Growth for Fixed Staking Products
As mentioned above, we intend to solve this underlying problem not only for EasyFi, but also for all other DeFi projects that want to provide their users a fixed income plan.
This is why, while we build and deploy the smart contracts for these programs, we are going to provide an open infrastructure facility via these fixed rewards contracts, which will allow any DeFi project to launch their own Fixed Interest products using the open smart contracts from EasyFi.
The smart contracts have been developed in such a way to allow any project to configure the program according to their desired needs. Some of these configuration parameters are:
- duration of the program
- interest rate of the program
- release date or period of the locked tokens
- lock-in durations
- target pool size for the program
We are of the opinion that these open smart contracts will open the floodgates to more incentivization opportunities for many DeFi projects, and also unleash the adoption potential for each project.
EasyFi Blend — A Uniswap of Fixed Staking Products
These new Permissionless Staking Contracts from EasyFi are part of the Blend milestone that we have been working on since Q4 2021. These are just the beginning of a whole series of new advanced contracts that will enable the growth of the protocol.
These smart contracts have been developed taking into account and blending the security, speed & functionality of major lending protocols giving the capabilities for our project to provide smart asset routing systems, faster and seamless reconciliation and a step towards robust governance.
Integrating these contracts in the EasyFi protocol will earn the protocol some fees which we intend to share with all the EasyFiDAO participants. This is perfectly in line with our final DAO vision — check Year 2022 roadmap — where the protocol will finally be governed by our community of believers.
EasyFi Network is a universal layer-2 multi-chain money market protocol for digital assets with focus on liquidity sourcing & capital efficiency for structured lending in a non-custodial manner. The Protocol is currently live on Polygon, Binance Smart Chain and Ethereum.
To learn more about $EZ and EasyFi, please go through our whitepaper and other articles on this publication.