Geode Finance FAQ
Last Updated: 02/13/2023
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Basic Concepts
What is a Geode staking pool?
A Geode staking pool simply refers to any liquid staking products that use Geode’s infrastructure. This ecosystem expands as more projects and institutions adopt our liquid staking infrastructure solutions, and use it to offer their own branded staking products.
What do you mean by “Contract-Owned Liquid Staking” (COLS)?
Contract-owned liquid staking refers to the standard components of the LS process fully controlled by smart contracts. Each element from withdrawal keys, minting of a staking derivative, and withdraw pools are all controlled and managed by Geode’s smart contracts.
There are two kinds of COLS: public, and private. Public-facing refers to a fully fledged liquid staking solution with staking derivative offered. Private refers to Private Pools, where organizations can access staking yields for idle assets sat in treasuries or when there is a need for staking yields without instant liquidity.
What is a “Contract-Owned Liquid Staking Derivative’’?
A Contract-owned liquid staking derivative is the uniquely-branded asset built under the Geode LS infrastructure. Simply put the COLS derivative refers to the token that is minted when a partner protocol integrates with Geode and develops their own liquid staking service. For example, yyAVAX is a COLS derivative.
Geode on Ethereum
What Are the Benefits of Geode’s Ethereum Staking Solution?
Geode’s protocol owned staking pools provide important benefits when compared to other staking products on the market. Firstly, Geode’s staking infrastructure drives forward decentralization on the Ethereum network. This is because Geode functions as a free market for liquid staking pools and node operators, enabling all types of projects and communities to capture the benefits of liquid staking. This means using Geode helps keep the Ethereum network healthy, in contrast to staking with large centralized entities, which detracts from the goal of decentralization.
Geode also provides top notch security to stakers. Our entire infrastructure functions in a completely trustless manner, which means that the platform operates without the need for a central authority or intermediary, using smart contracts and decentralized technology to ensure the security and transparency of transactions.
What is the difference between public and private staking pools?
Geode provides two options for contract-owned liquid staking pools: public and private. Public pools are openly available to anyone who wishes to participate, providing a comprehensive and easy to integrate liquid staking solution, with a branded staking derivative on offer.
Private pools, on the other hand, are not open for anyone to join. They’re designed for individuals or organizations that seek more exclusivity and control over their staking pools. For example, these private pools allow organizations to access staking yields for their idle assets held in their treasuries, or the ability to perform KYC by carefully controlling access to their pools.
The choice between public and private pools ultimately depends on the individual or organization’s specific needs and preferences, with each offering unique benefits and drawbacks.
Why Would Node Operators Want to Use Geode?
There is no question that node operators play a vital role within Geode’s Marketplace, but it is important to understand that they’re also incentivized to participate. This is because Geode will give node operators an advantage when it comes to gaining additional stake under management. Once integrated as a part of Geode’s network, node operators are instantly available for any partner to use their services to manage their staking solution. By opening our network to all node operators we help to promote validator diversification and allow the free market to determine where the stake goes, rather than any centralized entity.
This means they can integrate once, and operate on Geode’s network forever — once a Node Operator connects to Geode’s marketplace, it can provide it’s services to multiple staking pools without any changes. Plus, Geode imposes no restrictions or mandated updates on participating node operators. They are free to operate how they wish, and will attract stake based solely on their own performance.
Is Integrating with Geode Difficult?
Not at all. In fact, this is one the best parts about Geode’s staking solution, for node operators and staking pool owners. Setting up with Geode is extremely simple, and fast. We’ve deliberately made integrating our infrastructure as easy as possible. Simply get in touch with us via our Discord, and get onboarded easily to start generating fees for your service.
Geode on Avalanche
What Is yyAVAX?
yyAVAX is Yield Yak’s staked AVAX token which represents AVAX staked or delegated in validators. yyAVAX is a yield bearing token and has a Monotonic function, meaning its price increases over time to reflect the yield it is generating.
How Do I Stake AVAX through Geode?
You can stake AVAX through Geode by visiting our app located at https://www.avax.geode.fi/. Once there, AVAX can be staked by selecting a staking pool.
Currently, the only pool available is YieldYak’s yyAVAX. Staking can also be accomplished through YieldYak’s own app, as it’s simply the interface, and the same Geode infrastructure is utilized no matter which application is used.
What is a Dynamic Withdrawal Pool (DWP)?
Dynamic Withdrawal Pools can be summarized as the innovative chief mechanic behind Geode’s decentralized stable-price lending pools. The Dynamic Withdrawal Pool feature was designed to allocate any amount of requests instantly, all without the need to keep a surplus of AVAX on the C-Chain, or deal with a waiting period to remove your funds.
Dynamic Withdrawal Pools provide the key methodology behind our withdrawal pools, providing exit liquidity from any Geode derivative representing staked AVAX (in this case, yyAVAX) back to regular AVAX.
How Do You Bridge Assets from Ethereum to Avalanche?
If you’re currently on the Ethereum Network and looking to bridge over some assets to the Avalanche Network, this tutorial will walk you through the process. You can bridge multiple ERC20 tokens using the bridge, but this example uses ETH and assumes you have ETH in your wallet. Start by visiting https://bridge.avax.network/ to access the official Avalanche bridge. Over $75 in assets bridged will qualify you for an airdrop of AVAX to pay for gas on the other side of the bridge (Avalanche Network).
Start by inputting the amount of ETH you want to bridge over to Avalanche. Click ‘Transfer’. You will have to pay gas for the first transaction, which requires you to ‘wrap’ your ETH in order to transfer it through the bridge. ‘Confirm’ gas.
It will take some time, possibly several minutes, for your first transaction to complete. The video is time lapsed. You will have to ‘Confirm’ a second gas transaction to start moving your ETH over the bridge. This transaction requires 35 confirmations on the Ethereum Network before confirming on Avalanche. Again, this process may take several minutes to complete.
Once complete, you have successfully bridged ETH to AVAX. You are now holding wETH.e on the Avalanche Network. If you’ve transferred more than $75 worth, you’ll also be airdropped some AVAX.
Want to swap from wETH.e to AVAX? Visit https://yieldyak.com/swap to easily swap between assets and watch the video below for a quick rundown of how that works.
What Is Telescope?
Telescope is the native Oracle of Geode Finance that tracks the price of gAVAX tokens generated by different staking pools. For every AVAX token staked through Geode Finance, users receive a gAVAX token. Telescope serves as a secure system to calculate the proper prices for these gAVAX tokens. Like other Oracle networks, Telescope utilizes multiple nodes that are collecting and interpreting off-chain information, verifying each-other’s work, and finally inserting that verified data into Geode’s smart contracts.
What Is gAVAX?
The term gAVAX is the base or generic representation of staked AVAX using Geode’s infrastructure and is based on the ERC-1155 token standard. In the case of our partnership with Yield Yak (staking pool owner) and Eden Network (node operator), the staked derivative version of AVAX is yyAVAX, a version of gAVAX. As other projects and institutions integrate Geode’s white label liquid staking solution across the Avalanche blockchain, other versions of gAVAX will be available to users.
How is APY earned between Geode/Eden/Yield Yak partnership?
Within the yyAVAX partnership, the APY is largely determined by Eden Network, performing the role of node operator. Combining Eden’s own validator node, 3rd party white-listed validators, Subnet Validation as well as their proprietary yield generation engine, allows for competitive APYs.
