A new type of asset-backed token has emerged in recent years: the yield aggregating token. Harness the power of revenue aggregation.
When it comes to getting a consistent return on investment, many people turn to the stock market. However, for those looking for a more reliable, efficient, and stable source of income, there is another option: asset-backed tokens.
Asset-backed tokens are digital assets backed by physical assets such as commodities or real estate. They offer people an opportunity to diversify their investment portfolios and generate a steady stream of income by harnessing the power of high-tech financial instruments.
While asset-backed tokens have been around since 2013, they were initially used solely for trading and investment purposes. The majority of these tokens were created using Counterparty or other similar platforms. However, in recent years a new breed of asset-backed token has emerged: the yield aggregating token.
What are yield aggregating tokens?
Yield aggregating tokens aim to provide investors with a way to pool their wealth and generate a consistent return on investment (ROI). Unlike traditional markets where investors have to buy individual assets and manage them themselves, yield-aggregating tokens automatically aggregate the value of all underlying assets to increase returns for investors.
This means that instead of buying and managing individual stocks, bonds, commodities or currencies, investors can buy a single token backed by the same assets. The result is a higher return without additional work.
Several promising projects are currently trying to create yield-aggregating tokens, including Mozaic. However, the majority have yet to release any products or services to the public due to the complexity of creating a successful yield aggregating token. It requires highly technical programming skills or an extensive team of computer scientists, engineers and data scientists.
Currently, the MOZ token is not yield aggregating, but the vault is therefore used to move coins to other vault protocols.
How can investors use their wealth to do yield farming in DeFi?
Unlike traditional markets, DeFi allows investors to easily sell their farming wealth without much know-how. For example, if an investor wants to be part of the mining community, they must purchase mining equipment, manage electricity costs at their home, and devote time to maintenance. However, with DeFi’s easy access to yielding resources pooled together, the investor can get a share of the mining rewards without any hassles.
For example, staking the $MOZ token in the Mozaic protocol allows users to govern the protocol and direct ecosystem rewards while discussing, proposing and voting on changes to the protocol. Users can also flexibly lock their tokens in time and get veMOZ, giving them more voting power and rights in the ecosystem and really facilitating the decentralization and management of the Mozaic protocol.
What is Mosaic?
Mozaic is an omnichain protocol designed to use machine learning to predict and seek the highest-yield, most capital-efficient multi-chain yield farming opportunities while fully automating the process for the end-user. Mozaic also states that they will leverage LayerZero technology and Stargate Finance to launch “Omnichain Index Vaults” to allow users to seamlessly farm on any blockchain.
To understand how the Omnichain index vaults work, Mozaic has simplified the process:
- A user zaps (deposits) a supported cryptocurrency into one or more of the Omnichain index vaults:
- Vault 1 (stablecoins): USDC, USDT, BUSD
- Vault 2 (Altcoin Majors): ETH, BNB, SOL, ARB (tbc), OPT, AVAX.
- The Mozaic algorithm rebalances the zapped deposit among the cryptocurrencies in the vault;
- The algorithm then aggregates deposits and begins yield farming on the most optimal blockchain, automatically composing and rebalancing vaults at the most efficient intervals.
Mozaic: Empower yield farmers with institutional technology
While the DeFi phenomenon has certainly cooled, the now saturated DeFi market has added unnecessary complexity to a simple question; “Where can I stake my tokens to get the highest return?“The Mozaic team intends to eliminate this problem by streamlining the DeFi experience and providing the industry’s most competitive ROI strategies. How does it all work?
Well, Mozaic’s Omnichain vaults are powered by a machine learning algorithm that they called Archimedes. Eureka!
The Archimedes interaction lies under the hood of the Mozaic Omnichain Index vaults, where the algorithm:
- Uses predictive metrics to regularly rebalance deposits into the Omnichain index vaults;
- Continuously searches pre-approved logs for farming with aggregate funds.
- Automatically combines and alternates yield farms at the most efficient intervals
It all sounds incredible when the team can deliver and they have said initial testing is proving optimistic so we’ll see if they can withstand the troughs of the current market.
Save time by using LayerZero
Mozaic aims to offer its users the best available yield by leveraging the power of multiple blockchains through LayerZero technology. With this technology integrated with Stargate Finance’s “unified liquidity pools that provide instant guaranteed finality,” Mozaic will be able to provide users with the best yield from any chain and ensure that cross-chain slippage and fees do not are the best in the industry.
Layerzero currently supports:
- ether
- Binance SmartChain
- avalanche
- polygon
- referee
- optimism
- phantom
LayerZero and Omnichain interoperability make it possible to access entire blockchains with just one click.
Where can I learn more about Mozaic?
Mozaic’s founders and active community members continue to discuss protocol development and the DeFi landscape on Discord. You can access the Mozaic Discord here. The Mozaic team also seems to update their progress regularly via Medium, which you can also access here. When the protocol transitions to a DAO, members can use their $MOZ governance tokens to vote on proposals put forward by the DAO and distribute ecosystem rewards.
The Mozaic team has the potential to create a powerful tool that offers users a simple, one-click approach to yield farming. With omnichain interoperability, users can access multiple blockchains by leveraging the Mozaic index vaults. Mozaic was developed with LayerZero technology and integrated with Stargate Finance. Mozaic is certainly a protocol worth keeping an eye on even during these turbulent times in crypto.
Author – Calum Roberts
Prop Firm Trader at Star Beta and Founder of Mozaic.
From my humble beginnings driving a truck in the Australian outback mining gold to working with Australia’s most successful cryptocurrency traders, my passion has led me to bring my own Defi protocol to the market. My professional and now senior position at Star Beta has given me the opportunity to network with industry giants of all disciplines, some of whom I am proud to call my friends. By applying my ethos in life of “less is more” combined with my business and finance savvy, I am energized to create lasting solutions for a community I care about. These are the foundations of my quest to help Defi users through Mozaic.
Outside of work, I like to travel, be it to professional events on the other side of the world or to less professional but unforgettable moments in life.
I never miss an opportunity, that’s why I’m here. I enjoy connecting with like minded people so don’t hesitate to leave a message.
Disclaimer: The information contained herein is provided without regard to your personal circumstances and therefore should not be construed as financial advice, investment recommendation or an offer or solicitation to engage in transactions in cryptocurrencies.
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