- Smart Liquidity Research

Published on: 10.02.2022

Geode is a multichain solution, able to enhance and even transform the staking ecosystem on any PoS chain.

By opening up their Universe to any PoS chain (Galaxy), they open the doors for any DAO, wherever they reside, to have access to their own staking solution. This improves security and capital efficiency while allowing all base assets to become yield-generating by default across the whole of DeFi.

They have recently made the decision to bring Geode to a new Galaxy: Avalanche! This article will break down the reasons why this network was chosen and what Geode looks like on Avalanche.

A New Galaxy: Avalanche

Avalanche caters to users seeking a network with low fees and fast transaction speeds built on a solid tech infrastructure. Investors are always on the lookout for new and innovative ways to ease the gas pains they’ve been suffering from over the past year. And for anyone looking to speed things up and reduce costs, Avalanche offers a solution they’ve been searching for. Infact, Avalanche is currently the fastest smart contract platform in the industry (as measured by time-to-finality). Additionally, it has the most validators securing its activity of any PoS protocol. While Avalanche is gaining wider adoption, increasing in popularity, and has seen rapid growth in 2021, its staking ecosystem is in its infancy. In fact, at the time of writing this article, there are very few liquid staking solutions available on their network. With relatively high staking rewards (~10%), the Avalanche ecosystem is currently missing out on a colossal opportunity for its users to realize additional yield and capital efficiency on their AVAX. Geode will be changing this, providing a robust liquid staking solution to the network and allowing any DAO to participate, all without additional expenses or paying 3rd party fees on their earnings.

Yield Generating AVAX

It is Geode’s mission to make all AVAX on the Avalanche network yield generating. Geode accomplishes this task by providing a yield-bearing version of AVAX. Every Planet in the Avalanche Galaxy that enters our universe will have their own version.

How DAOs Can Benefit from Geode

Many benefits will exist for our partnered planets on Avalanche, including:

1. Simplistic white label staking solution implementations without fees or maintenance requirements.

2. Increase yield on static treasury AVAX with the ability to provide staking services to your users, all while maintaining the ability to charge what you want to generate income

3. Bring your own governance to our ecosystem

4. Full control over your withdrawal contracts, giving them complete security of treasury and user funds

5. Liquidity Provider (LP) opportunities for their users via their own staking derivative

6. Smooth and simple integration

The ultimate staking derivative with dynamic withdrawals

Again, the beauty of Geode is its ability to offer our product to DAOs for free. With a host of potential and no cost to participate, it’s a win-win situation for any protocol looking to expand their offerings and increase income

Geode earns fees through dynamic withdrawal pools. These are liquidity pools which aim to keep the price of AVAX & staked AVAX at a stable 1:1 ratio. Leveraging dynamic withdrawals, it ensures eventual peg stability with continuous buybacks and provides a revenue source for Geode Finance, while allowing the Geode Community to generate yield by providing liquidity for withdrawals.

How Do I Become a Part of the Geode Universe?

If you are a decision maker for a protocol, wallet, exchange or bridge that would like to become a part of the Geode ecosystem, join their Discord and contact Oranges from the Operations department.