FAQ: Geode on Avalanche Network
Last Updated: 08/13/2022
What is a Universe?
The Universe is Geode’s ecosystem. This ecosystem expands as more Planets adopt our liquid staking solution across different Galaxies.
What is a Galaxy?
A Galaxy refers to any Proof of Stake chain. Avalanche is therefore a Galaxy.
What is a Planet?
A Planet is the name we use for each DAO that runs our staking infrastructure. Yield Yak is an example of a Planet.
What is the Senate?
The Senate consists of a minimum of 4 planets and has the power to pass or veto all successful governance votes. The Senate therefore becomes a core part of Geode’s governance model. Each Planet in the Avalanche Galaxy has an opportunity to become a member of the Senate, giving Planets that join the ability to bring their own Governance to Geode’s Universe, helping to shape the direction of the Geode Protocol and giving each Planet and their respective communities a stake in the future of their own staking solution.
How Do I Stake AVAX through Geode?
You can stake AVAX through Geode either by visiting the planet that has integrated our staking solution and staking AVAX directly with them, or you can visit app.geode.fi, select that planet you wish to stake with and stake directly through Geode.
Both methods route to the same contracts and neither method has any advantages or disadvantages over the other.
What are our Withdraw Pools?
Our withdrawal Pools provide exit liquidity back to vanilla AVAX. You can therefore use our withdrawal pools to swap from any of our planet’s staked tokens back to regular AVAX. We use a process we call “Dynamic Withdrawals” to provide a consistent fair exchange rate for all of the staking tokens in the Avalanche Galaxy. To learn more about the functionality of our withdraw pools, please visit our documentation.
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 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?
Currently, we have created an Oracle to keep track of the price of gAVAX tokens created by different Planets in our universe. Telescope is the name of the native Oracle that is powered by Geode Finance.
For each staked AVAX token through Geode Finance, you receive a gAVAX token. Since the value of AVAX staked will increase gradually, the value of gAVAX should also increase by the same rate. This is because total supply of gAVAX always corresponds to the amount of AVAX staked through Geode Finance.
Avalanche staking operations vary from 2 week to 1 year periods. Due to the nature of staking, the earnings are not realized until this staking period is over. This could damage Geode’s AVAX-gAVAX pool if any balance feed is not properly pushed to contracts. For this reason, there is a need for an oracle daemon system that would calculate the earnings of all operators registered to Geode Finance, and submit the secure data to the contract.
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.
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 (Planet) and Eden Network (node operator), the staked derivative version of AVAX is yyAVAX, a version of gAVAX. As other Planets (DAOs) integrate Geode’s white label liquid staking solution across the Avalanche Galaxy (chain), other versions of gAVAX will be available to users.
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.
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.
How does Geode generate revenue?
Geode generates fees from the use of the dynamic withdrawal pool. Geode builds value-add products on top of its infrastructure that generate fees for the protocol. An example of this is the Dynamic Withdraw Pool, where Geode takes a small fee.