Y2K Finance
25 May, 2023
·
4 min read
V2 Feature Highlight: “Carousel”
Deep-Dive
Intro
Preparation is of utmost importance in times of cascades and on-chain volatility. This is why we’re proud to move towards the release of V2, the most comprehensive risk market for pegged assets.
At the heart of V2 lies our innovative Carousel infrastructure which greatly improves user experience through automation. With Carousel, Y2K users can now enjoy automatic rollovers and 24/7 deposits, making it easier than ever to speculate on and prepare for depeg events.
Carousel: Rollovers
After closely analyzing user feedback, the absence of rollovers on Earthquake was one of the main UX deterrents. With Carousel, users can now rollover their Earthquake V2 positions and participate in sequential epochs without the need to time deposit periods. This is a substantial improvement from V1 where users had to withdraw and re-deposit for every epoch they wanted to participate in. Not to mention, users had to wait for the next epoch’s deposit window to open before they could re-deposit.
Now in V2, users can opt-in any amount of their deposit to rollover into the next epoch (0–100%). Users can change their rollover amount or completely opt-out and withdraw at any point before the previous epoch ends. In the time between the previous epoch ending and next epoch starting, Carousel Keepers facilitate this rollover process every epoch until the user delists or the position gets liquidated.
Rollovers provide much-needed flexibility so depositors can stay in a vault for any desired period, and such automation makes Earthquake a more attractive solution for passive users and treasury management. Particularly, Earthquake becomes a more viable product for other DeFi protocols looking to build on top of its stack.
Carousel: 24/7 Deposit Queue
24/7 deposits are a massive improvement made possible with a deposit queue facilitated by Carousel Keepers. In V1, users had to wait for an epoch’s deposit window to open before depositing. This was a tedious user experience, since missing the deposit window meant not being able to participate in an epoch.
With Carousel, users can now deposit 24/7 into a queue without having to wait for deposit windows open. If users try depositing before the next epoch, they will be placed in the queue which is emptied by Keepers every time a new epoch’s deposit window opens. Queue depositors cannot withdraw after entering the queue; they are locked into their position. Since Keepers empty the queue right when the epoch’s deposit window opens, queue depositors will incur the lowest information tax.
Information Tax
Last-minute depositors have a clear advantage over earlier depositors that are already “locked into” their position. The information tax introduced in V2 compensates for this, balancing incentives through a deposit fee which linearly increases after direct deposits open. Now, users who wait until the direct deposit window opens will pay a deposit fee relative to how “late” they’ve deposited.
Queue depositors pay the lowest information tax, as Keepers execute these deposits in the first blocks of a new deposit window opening. In this, Carousel can be used to incur the lowest deposit fee on Earthquake.
This represents a fresh new revenue stream for vlY2K holders and protocol, while further optimizing the overall utility of our platform.
Keepers
Keepers are bots that automate transactions on-chain, and are a vital member of the automation flow. For Earthquake, Keepers facilitate early deposits and rollovers by automating the vault deposit process. Users pay Keepers a fee for the purposes of covering gas costs, but this cost is minimal in comparison to the time saved and achieved UX improvements. Furthermore, there is a minimum deposit threshold for all Keeper-related actions to ensure quality automation flow.
Through deposit automation Keepers provide a much needed service for the end user: abstraction. Through abstraction, Earthquake becomes vastly more accessible to users while attracting stickier TVL for the protocol.
Conclusion
Y2K is building out a diverse suite of products for risk and speculation in DeFi. An important aspect of this mission is making our products accessible for both users and builders alike, specifically through ease of use.
V2’s Carousel focuses specifically on making our Earthquake product a low-maintenance experience for everyone that uses it. This architecture is especially lucrative for protocols looking to passively deploy their treasury or even build custom products on top of Earthquake.
Earthquake’s Carousel is just one V2 innovation amongst many, providing users a refined set of tools for seamlessly hedging or betting on pegged assets.
🙂💥
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