A New Hybrid Yield Aggregator
MAXX Finance is elevating the standard of traditional staking/yield farming systems we have seen in the past by focusing on high performance and efficiency. By applying innovation to pre-existing staking protocols we have created a cutting-edge ecosystem that rewards users for removing their tokens from circulation. In addition, MAXX has improved the tokenomic system of staking to reward the staking class and simultaneously combat inflation through deflationary measures.
People love staking and yield optimizing platforms. With MAXX we a building a protocol from the ground up to allow users to maximize these returns in an innovative and unique way. — AlphaWhat is crypto staking?Crypto staking is an activity where a user locks or holds funds in a cryptocurrency wallet to participate in maintaining the operations of a proof-of-stake (PoS)-based blockchain system. Crypto staking is similar to crypto mining in the sense that it helps a network achieve consensus while rewarding users who participate.
In staking, the right to validate transactions is determined by how many coins are “locked” inside a wallet. However, just like mining on a PoW platform, crypto stakers are incentivized to find a new block or add a transaction on a blockchain. Apart from incentives, PoS blockchain platforms are scalable and have high transaction speeds.
What is yield farming?Yield farming allows investors to earn yield by putting coins or tokens in a decentralized application, or dApp. Examples of dApps include crypto wallets, DEXs, decentralized social media, and more.
Yield farmers generally use decentralized exchanges (DEXs) to lend, borrow, or stake coins to earn interest and speculate on changes in price. Yield farming across DeFi is facilitated by smart contracts — pieces of code that automate financial agreements between two or more parties.
The problemsYield Farming & Staking can be a very profitable endeavor, however, it’s not without risk. The cryptocurrency ecosystem can be highly volatile, by staking or providing liquidity to multiple pairs you are essentially at risk.
Potential risks:Impermanent Loss — It is very common that LP (liquidity providers) can experience impermanent loss during holding multiple pairs during a volatile market. Staking rewards and yield farming might not be viable if the underlying assets you are holding have experienced price drops equally. This is a very common issue with being an LP provider.
Regulatory Risks — Cryptocurrency regulation is still shrouded in uncertainty. The Securities and Exchange Commission has declared that some digital assets are securities, putting them within its jurisdiction and allowing it to regulate them.
Rug pulls, market volatility, and smart contract hacks are some additional risks associated with staking and providing liquidity to multiple different projects.
HODL has been a long-time motto of the crypto space, which every investor should consider since it generally works as a viable strategy. However, holding BTC for a year without staking it will produce no return, which is a shame when some protocols & platforms offer 15–20% APY while you HODL — Alpha
The MAXX SolutionMAXX Finance has taken the best of both worlds with a hybrid yield-aggregator staking system that is designed to remove risk from you, the end user. This allows users to have an all-in-one staking ecosystem to interact with and earn guaranteed yields without the risks associated with yield farming, or staking.
Creating A Storage Of Value EcosystemBy building on a L2 (Layer 2 blockchain) MAXX is not required to verify transactions since the L2 does this for a fee. We have created a staking system that is intelligently implemented and allows users to earn rewards by staking MAXX.
Essentially we operate like Bitcoin’s storage of wealth ecosystem and allow for users to facilitate transactions to and from wallets while giving rewards in the form of $MAXX to the staking class. — Alpha
Removing the middle manMAXX encourages users to remove their coins from CeFi (Centralized Finance) CEX (Centralized Exchanges) and enter the DeFi (Decentralized Finance Space) instead to reap its unique benefits. DeFi is the best place to be in the crypto sphere, as you own your own wallet keys and coins which solely belong to you, not an intermediary party, which helps to remove any counterparty risk.
With MAXX the coins never leave your wallet, you are always in control of the private keys and can buy, sell, or cancel the stake at any time. This allows you to hodl while the protocol is pre-programmed to pay out a yield that is gathered from the global blockchain of MAXX.
You sleep better at night knowing that the valuable assets you have are not in someone elses wallets — Alpha
Discouraging trading activities
Every trader will tell you, that there are wins and losses when trading crypto or any other asset class. By staking your crypto you are effectively reducing potential loss to your holdings since a smart contract locks up your coin, similar to putting your money in a piggy bank. You can end your crypto stake at any time, however, the system is created to encourage you to fulfill your obligation and wait for the full term of your stake to reap the maximum benefits. Ending your stake early is always an option but you will incur a penalty by doing so.
95% of traders are not profitable, while the remaining 5% require at least 3 years of trading to become profitable. Are you part of the 5%? — Alpha
Providing Risk-Averse EnvironmentBy removing the need to stake two or more paired crypto assets, MAXX removes the need to chase the best yield proposition from other platforms. By using the MAXX token within the stake constantly rebalancing the portfolio is no longer necessary.
MAXX gives you the ability to earn a GUARANTEED amount of yield unlike other L2 staking systems that offer 5–13% APY, nearly half of what MAXX can guarantee.
How MAXX is gamifying the system.Yield AggregationSafe and steady deflationary measures allow us to operate in a safe and predictable manner. We dedicate a percentage of liquidity that is specifically allocated to owning validator nodes across top L2 platforms such as ETH, BSC, FTM, MATIC, & more.
LP Providing popular protocolsThe second layer is to create LP pairs of popular protocols to constantly provide liquidity & yield farm the crypto ecosystem. Without having to worry about the downside effects or focus on a very short time frame we are able to constantly capture tangible yield to distribute between the MAXX Vault.
Careful Risk On & Risk Off StrategiesWe will have an overall macro outlook on the market determining the market condition and focusing on long-only holdings that are never leveraged. These assets will be held in a multi-signature wallet that will allow us to have maximum protection. The strategies will come from AI technology that will give us clear information about the cycle of the market with the ability to take risk on & risk-off strategies to capture the maximum amount of gain during a bull or a bear market.
MAXX TX TAXMAXX uses a dynamic tax implementation system that contributes to the deflation of the entire protocol & chain to generate revenue for the protocol. It will cost a small fee to process transactions on MAXX, but in the long term, this will benefit the overall protocol and allow all users to benefit from the deflation.
MAXXVaultMAXX will constantly be building further on the platform through our community-voted Vault system. The vault is designed to burn tokens, pay for marketing, as well as fund further development of the protocol.
The MAXX Staking system is designed to remove supply from circulation and reward users by doing so. With MAXX you can safely hodl while you own your own wallet keys, which will create lots of positive price action and price appreciation in the future. We have multiple data sets and points that prove that this system will be sustainable well into the future providing a long-term staking solution for yeras to come.
The MAXX team is grateful for the support of our community as we continue to develop this much-needed solution. Join our telegram and follow our socials in order to stay up to date with our project.
