Shojiru is a proof-of-concept of a native Telos yield optimizer.
(Github at the end)
🙋 Why another yield optimizer?
There are many yield optimizers in the EVM market (See Beefy or Autofarm, for instance), most work by compounding the user's rewards and collecting management fees in exchange. This economic model is great and battle-tested, but we felt it could with a little do-over.
We thus took the opportunity of this hackathon to "hack" a little, in order to improve the user's yield in the process!
⚙️ How does it work?
Shojiru will stake the user's LP tokens into the AMM's farm (here, zappy.finance was used). The reward ($Zappy) will then be sold on the market and exchanged for $Shojiru token. The earned $Shojiru will then be staked in our own boosted farm, with improved APYs, and compounded every day.
This mechanism allows improving the yield of a user's investment, while protecting his capital, the added risk being only on the rewards and not on the principal. It can also be applied to any type of liquidity, increasing organically the rewards for very competitive pairs, such as stablecoins, for instance.
(Check the contract's github for a larger picture)
🥵 Yeah, ok, but usually the token dumps, right?
You're right, most yield optimizers minting a yield token reach the floor after some time, as the fees are not high enough to compensate the emission.
With this model, this is not the case: because the protocol uses the rewards from the investments to buy everyday new tokens from the market, it creates a constant buy pressure, compensating the natural inflation.
As an added stabilizer, Shojiru has a treasury, along with a burning program, funded by the management fees. In case of a sharp decrease in liquidity, this allows the protocol to buy back tokens to protect the APYs and thus the attractivity of the platform.
🔥 Wow, great! Can I start to use it?
Sure! The contracts should work, and you can already stake. Bear in mind that this is a test/alpha version that we set up for the hackathon: liquidity is low, the token is called "test" and some auditing/more on-chain testing needs to be done. Therefore, feel free to try it, but don't wager important amounts.
🔗What links your project to Telos?
Given that we're one of the first Defi projects on Telos, we understand our role as pioneers. Our Solidity dev (Yakitori in the Telos EVM dev chat) has been working closely with Telos core developers to signal bugs, give feedback and debug issues.
We plan to continue the collaboration, in order to improve the development experience for devs on Telos, which we think is pivotal to reach mass adoption.
We plan in the short term to improve the UI of the platform, to make it even easier to use, snappy (switch to multicall) and stylish, add charts and proper docs. A launch is certainly on the table, as soon as we're satisfied with the product.
On the long run we'll consider turning Shojiru into a DAO, or at least adopt a collaborative model where Telos users can submit new strategies - either code or "recipes" and earn a fee from their usage.
When a lending/borrowing will come, we'll look into "edge" yield strategies optimizing L/B loops and using decentralized bots to prevent liquidation, using Telos' lightning fast EVM.
🏄♂️ Who are we?
The team is composed of a Solidity dev (Yakitori/Kusanagi on Discord) and a Front-end dev (Loyu), with more than one year of experience in the cryptoverse as freelancers.
We met on a mission for a client, and decided to work together for this hackathon! We're anon for the internet, because we like our privacy, but if the team wants us to do a KYC privately, we are open to it.
🎏 What does Shojiru mean?
Shojiru (生じる) is a japanese word meaning "to produce, to yield".
💾 Github links:
(Dm me on @yakito_ri on telegram if you need help with something)