GIP-2: Create and Launch the MATIC Max Yield Index (MATICMAXY)

Summary

The Galleon DAO core crew in collaboration with Beverage Finance wishes to launch the newest structured product in the maxY product range, the MATIC Max Yield Index (MATICMAXY). The index provides exposure to MATIC with levered yield rewards on top.

Abstract

Following the successful launch of the ETH Max Yield Index ($3m+ TVL since launch), Galleon and Beverage are looking to add to the “maxY” product range. Currently, there is a proposal on Aave for stMATIC to be added: Proposal: Add Support for stMATIC (Lido) - New Asset - Aave similarly to how stETH was, therefore the Galleon core team is proposing the Launch of the MATIC Max Yield Index (MATICMAXY).

Motivation

The MATIC ecosystem is valued at $12b with over $12b in TVL, we feel it is an ideal candidate to add to the “maxY” product range. The snapshot for stMATIC to be added to Aave will begin on Apr 3, 2022, 4:59 AM and finish on Apr 7, 2022, 4:59 AM (see here: snapshot). Due to the success following stETH listing on Aave, we believe that this vote will easily hit quorum and therefore the Galleon wants to be as well-positioned as possible for first-mover advantage.

Specification

Similarly to the ETH Max Yield Index, the MATIC Max Yield Index will offer net 1x MATIC exposure with 14.07% levered yield APY.

  • Max LTV: 55.0%
  • Liquidation threshold: 62.0%
  • Liquidation penalty: 15.0%

Implementation:

  • On launch: Net 1x MATIC with 14.07% APY
  • No fixed interval. The product will be rebalanced if the leverage ratio falls due to stMATIC APY accrued.
  • Streaming fee 1.95%
  • Cross-promotion between Lido, Galleon Dao and Beverage Finance.

Resources Requested:

None

3 Likes

Juicy! Ser. 1 point I would like to clarify is Matic is worth **Maxi. I mean is there MaticMaxist? Yes I am ethernaxi, so I bought DBL and ETHMAXI, icETH, staked in LiDo and stakewise.

Is Matic worth it? Sorry I guess I missed point as I do not have any knowledge on other chains than ether. Product itself is good and juicy and I completely agree with you.

Sorry my cat have wrongly deleted previous post.

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It’s probably worth me clarifying that the product itself has nothing to do with maximalism, the “maxY” part of the ticker is an abbreviation of the “Max Yield” name. It’s just coincidence and (we think) a cool ticker.

As for the potential success of this new product, polygon is one of the largest market cap ecosystems and has $12b TVL - we believe it will have its place in the market :+1:

1 Like

Sink me! Max Yield… I need to study more! Anyway, thanks for sharing forecast of Matic. Let’s go and get booty. Thanks.

2 Likes