A new type of asset-backed token has started to emerge in recent years: the yield aggregation token. Harness the power of return 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 individuals a way to diversify their investment portfolios and generate a steady stream of income by leveraging the power of high-tech financial instruments.
Although asset-backed tokens have been around since 2013, they were initially used exclusively for trading and investment purposes. The majority of these tokens were created using Counterparty or other similar platforms. However, a new type of asset-backed token has started to emerge in recent years: the yield aggregation token.
What are Yield Aggregation Tokens?
Yield aggregation tokens are designed to provide investors with a way to pool their assets and achieve consistent return on investment (ROI). Unlike traditional markets, where investors must purchase individual assets and manage them themselves, Yield Aggregation Tokens automatically aggregate the value of all underlying assets to increase returns for investors.
This means that instead of acquiring and managing individual stocks, bonds, commodities or currencies, investors can buy a single token backed by those same assets. The result is an increased rate of return with no additional work required.
Currently, several promising projects are trying to create yield aggregation tokens, including Mozaic. However, the majority have yet to release products or services to the public, as creating a successful yield aggregation token is very complex. This requires highly technical programming skills or a large team of computer scientists, engineers, and data scientists.
Currently, the MOZ token is not a yield aggregator, but the vault is, so to move coins to other vault protocols, predictive modeling is used.
How can investors use their assets to produce yield farming in DeFi?
Unlike traditional markets, DeFi allows investors to easily dispose of their agricultural assets without much know-how. For example, if an investor wants to be part of the mining community, they have to buy mining equipment, pay electricity costs in their home, and spend time maintaining everything. However, with DeFi’s easy access to pooled productive resources, the investor can get a portion of the mining rewards without the hassle.
For example, staking the $MOZ token in the Mosaic protocol will allow users to govern the protocol and direct ecosystem rewards while discussing, proposing, and voting on protocol changes. Users can also flexibly lock their tokens and receive veMOZgaining more voting power and rights in the ecosystem, truly facilitating the decentralization and governance of the Mozaic protocol.
What is Mosaic?
Mosaic is an omnichain protocol that aims to leverage machine learning to predict and seek out the most profitable and capital-efficient multi-chain yield farming opportunities, while completely automating this process for the user final. Mozaic also states that they will leverage LayerZero technology and Stargate Finance to launch ‘Omnichain Index Chests,’ to allow users to farm seamlessly on any blockchain.
To understand how 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 will rebalance the zapped deposit among the cryptocurrencies in the vault;
- The algorithm then aggregates the deposits and begins yield farming on the most optimal blockchain, compounding and automatically rebalancing vaults at the most efficient intervals.
Mozaic: Empowering Yield Farmers with Institutional Technology
While the DeFi phenomenon has certainly cooled, the now saturated DeFi market has added unnecessary levels of complexity to a simple matter of; “Where can I stake my chips for the highest return?“The Mozaic team intends to eliminate this problem by streamlining the DeFi experience and providing the most competitive yield strategies in the industry. So how does it all work?
Well, Mozaic omnichain safes are powered by a machine learning algorithm they called Archimedes. Eureka!
The Archimedes interaction is found under the hood of Mozaic omnichain index vaults where the algorithm:
- Uses predictive metrics to periodically rebalance deposits in omnichain index vaults;
- Continually seek pre-approved protocols for cultivating with aggregated funds.
- Automatically composes and changes yield trusses at the most efficient intervals
It all sounds incredible if the team can deliver and they said early testing is proving optimistic so we’ll see if they can withstand the current market lows.
Save time by leveraging LayerZero
Mozaic aims to provide the most optimal yield available to its users by harnessing the power of multiple blockchains through LayerZero technology. With this technology integrated into Stargate Finance ‘unified liquidity pools that provide instant guaranteed finality,’ Mozaic will be able to offer users the best return of any chain, ensuring that cross-chain slippage and fees are the most optimal in the industry.
Layerzero currently supports:
- Binance Smart Chain
Thanks to LayerZero and omnichain interoperability, it becomes possible to access entire blockchains with a single click.
Where can I go to learn more about Mozaic?
Mozaic founders and active community members are still discussing the development of the protocol and the DeFi landscape in the Discord. You can access the Discord Mozaic here. The Mozaic team also seems to regularly update their progress through Mediumwhich you can also access here. As the protocol matures into the DAO, members can use their $MOZ governance tokens to vote and direct ecosystem rewards to proposals advanced by the DAO.
The Mozaic team has the potential to create a powerful tool that will give users a simple, one-click approach to yield farming. With omnichain interoperability, users will be able to access multiple blockchains by leveraging Mozaic index vaults. Built using LayerZero technology and integrating with Stargate Finance, Mozaic is surely a protocol worth watching, even in these turbulent times in crypto.
Author – Calum Roberts
Prop trader at Star Beta and founder of Mozaic.
From my humble beginnings driving trucks in the Australian outback to mine gold, to working alongside Australia’s most successful cryptocurrency traders, my passion drove me to launch my own defi protocol. My professional and now senior role at Star Beta has given me the opportunity to network with big names in the industry of all expertise, some of whom I’m proud to call my friends. By applying my less is more life philosophy, combined with my business and financial acumen, I am filled with energy to create lasting solutions for a community I care about. It is from these foundations that my desire to help defi users via Mozaic is fueled.
Outside of work, I like to travel, whether for professional events on the other side of the world or not so professional but memorable moments in life.
I never let an opportunity slip by, that’s why I’m here. I like to communicate with like-minded people, so please leave a message.
Disclaimer: The information contained herein is provided without regard to your personal circumstances and should therefore not be construed as financial advice, investment recommendations or an offer or solicitation for trading in crypto- currencies.