Yelay Protocol’s Ambitious Plans for Sui Network
On January 22nd, 2024, in a pivotal announcement for the decentralized finance (DeFi) community, Yelay Protocol unveiled its plans to expand its innovative Yield Layer infrastructure to the Sui Network. This integration is set to unlock billions in Ethereum-based liquidity, providing a much-needed boost for emerging Layer 1 blockchains like Sui. As the DeFi ecosystem continues to evolve, this collaboration signals a significant step toward better liquidity accessibility and user experience.
Accessing Blue-Chip DeFi Yields
One of the standout features of this integration is the ability for Sui network users to access leading DeFi yields from established Ethereum-based platforms such as AAVE, Curve, Morpho, Gearbox, and Lido Finance. Traditionally, users have had to bridge assets or migrate between ecosystems, which not only adds complexity but can also expose them to risks associated with bridging technologies. With Yelay’s Yield Layer, Sui users will be able to stake and earn rewards directly within their native environment, streamlining their experience and keeping them engaged within the Sui ecosystem.
The Need for Liquidity in Emerging Layer 1 Networks
The timing of this announcement couldn’t be more critical. Ethereum’s dominance in the DeFi space remains robust, with more than 60% of the total value locked (TVL) in its protocols. However, the consistently high transaction fees have posed significant challenges for users looking to engage with DeFi platforms. This has resulted in difficulties for emerging Layer 1 chains like Sui, which seek to bootstrap liquidity to support their native protocols. By bridging the gap between Ethereum’s liquidity and Sui’s ecosystem, Yelay aims to alleviate this pressing issue.
Phased Integration: What to Expect
The launch of Yelay’s Yield Layer on Sui will occur in multiple phases throughout early 2025. The first phase will see Yelay’s technology being utilized by Perq, a pioneering project within the Launchpool space. They are set to release a Sui ecosystem Pod, which will enable users to stake Ethereum-based assets while accruing rewards from various participating projects. This innovative Pod system reduces traditional risks associated with bridging, allowing users to safely explore and interact with DeFi services across multiple blockchains.
Rewarding Users with Minimal Risks
The upcoming Sui Pod will allow users to stake USDC on Ethereum while claiming token rewards from numerous Sui ecosystem projects, including Yelay. All rewards will be claimed seamlessly on the Sui blockchain, effectively eliminating the need for complex bridging processes. This streamlined approach ensures that Ethereum users can gain exposure to Sui without sacrificing security or convenience, making it a highly attractive option for many.
A Milestone for Yelay and the Wider DeFi Landscape
As Yaroslav Writtle, Project Lead at Yelay, aptly stated, this integration represents a significant milestone for the protocol’s mission to minimize yield fragmentation. By facilitating a seamless user experience across chains, Yelay stands to spur the development of new yield-based products and services that leverage both the efficiency of Sui and the established security and liquidity of Ethereum.
Broader Implications for Cross-Chain Liquidity
Beyond the immediate benefits for Yelay and Sui, this announcement could reshape the landscape for Layer 1 blockchains. Traditionally, creating cross-chain liquidity has involved high risks associated with bridging assets. However, with Yelay’s approach, there’s potential for a smoother, safer transition, promoting user confidence and engagement in multiple ecosystems.
Introducing the YLAY Token
To facilitate these operations, the YLAY token, which powers the Yield Layer and offers access to various reward streams, is now tradeable on the Sui network. This token serves as a critical component in simplifying user engagement across the integrated platforms.
About Yelay Protocol
Yelay Protocol stands out as an innovator in the multichain yield space. With its Yield Layer, it provides a powerful toolbox designed for Web3 builders, allowing them to create sophisticated financial products and derivatives effortlessly. With over 40 integrations with renowned DeFi protocols, Yelay positions itself as a pivotal player in the evolution of decentralized finance, enabling seamless, efficient, and fully decentralized product development for businesses of all sizes.
About Faculty Group
The Faculty Group, a coalition of blockchain-native companies, actively supports and invests in Web3 innovations. With a diverse team of over 100 professionals worldwide, it offers early-stage projects a wealth of resources, including investment capital, product development expertise, marketing support, and strategic guidance on token economics.
Press Inquiries
For media inquiries related to Yelay, communications can be directed to Arvin Nathan at arvin@x8c.io.
This recent development not only marks a significant stride for Yelay but also enhances the DeFi landscape, providing promising new opportunities for both seasoned and novice users alike. As the crypto world continues to expand and evolve, the implications of Yelay’s integration with Sui could very well set the tone for future cross-chain collaborations and innovations.
