The rumors are true, and there is only little time to prepare… Doomsday is coming.Following a successful testnet deployment, Y2K is ready to take the next step and launch through an Initial Farm Offering (IFO).What is an IFO you ask?An IFO is the most fair and sustainable option to distribute protocol governance to our community. Users are able to accumulate Y2K rewards through the use of our Earthquake vaults, organically utilizing the protocol and driving the peg markets. This IFO is designed to incentivize early depositors who are duly rewarded for providing initial liquidity. As a whole, the Initial Farm Offering is an ideal way to decentralize the protocol ownership while simultaneously creating an efficient and more liquid protocol.
The $Y2K token is designed for three things: protocol revenue sharing, governance, and emissions direction. Shortly after launch, 30% of all platform revenue (subject to a governance vote) will be directed to vlY2K lockers, while the rest will accrue to the treasury to cover costs and support long term growth. With the protocol maturing, the fee share will be opened to change through governance.
The token will be fairly distributed across the following areas:
- 30% towards liquidity mining
- 35% towards the treasury
- 15% towards the core team
- 10% to New Order treasury (Incubator)
- 5% towards investors
- 5% to the IFO
IFO rewards are boosted emissions that will last for only the first 4 weeks. With this design, the token supply will be distributed generously to those who are earliest in providing the most Earthquake vault liquidity. The reward distribution will depend on two factors: accumulated share of the vault, and time staked for. After the allocated supply for the IFO is emitted, Y2K will return to a standard emissions schedule.
More details on the $Y2K token launch (Y2K and vlY2K) will be shared in the near future.
The IFO initiates on “Doomsday” and will be hosted on Arbitrum Network. To participate in the IFO, users need to navigate to y2k.finance and deposit $ETH into either the hedge or risk side of the given vaults.
Participants will have 7 days to deposit before the first epoch starts and the deposit window closes. All epochs thereafter will follow a standard deposit period of 2 days and 7 days for Weeklies and Monthlies respectively. Rewards for IFO participants will last for 1 month, coinciding with 3 weekly epochs.
Deposits will be locked up for the duration of the epoch chosen by the user. At launch Y2K will be offering 5 Weekly (7-day) Earthquake vaults: $USDC, $USDT, $DAI, $FRAX, and $MIM at launch. Hence there will be a total of 3 available Weekly vaults for each asset during the IFO period.
IFO rewards will be paid out in the form of locked Y2K tokens. Tokens are unlockable once $Y2K bonds and vlY2K (Vote locked Y2K) are live on mainnet, both of which are anticipated to happen within a month.
Hedge vault deposits will be paid out to the underwriters (Risk Vault) at each epochs end, generating a natural yield. Hence, token emissions will be prioritizing Hedge side vault depositors, which organically incentivizes underwriters (Risk Vault).
Note: Risk vault depositors still receive emissions on top of their premiums. A detailed breakdown of the IFO emissions and available strike prices is outlined below.
At launch there will be 5 Weekly vaults available with the following strike prices:
- MIM — $0.97
- USDC — $0.997
- USDT — $0.991
- FRAX — $0.99
- DAI — $0.999
We are excited to move into the final stages of deploying the first market that allows users to hedge against or speculate on the underlying risks of pegged assets. Furthermore, our hope is that through this IFO, it will give our users a fair way to gain network ownership of our protocol as well.
Doomsday? Doomslist 👀? Discord? What does it all mean, anon?
Start your countdown, Doomsday approaches…
Stay tuned to our Twitter and Discord for further launch details soon.