Author: Marco González

Editor: Randall Roland

An asset’s liquidity can be ascertained by its trading volume. Essentially, higher trading volume indicates higher market interest.

The EOS Live Coin Watch Chart for EOS/USDT shows a gradual decline in monthly volume for a few years, from March 2019 through May 2022. Except for a brief period in April/May of 2021, EOS seems to have its volume steadily chipped away.

It’s worth noting how sharp the spike of mid-2021 has been at its peak volatility. For two years, EOS/USDT volume held around $1 billion. However, on the week of May 7, 2021, the pair 10x+ to around $13 billion. Volume stays up the following week at about 7x.

In contrast, the BTC chart shows a steady increase in volume. One might think this is indicative of untapped potential. However, BTC never indicates the type of spike that EOS does. This rings especially true when considering the enormous amount of new development on the EOS mainnet.

EOS’s new leadership believes the solution for jumpstarting mainnet token liquidity will be spearheaded by Yield+. The community saw its first glimpse when the ENF provided a preview of the Yield+ blue paper.

DeFi activity can be incentivized. Yield+ strings together already successful concepts and integrates them with EOS’ third-gen technology. Applications apply for direct subsidy for providing an influx of on-chain capital. The metric used is Total Value Locked (TVL), which is measured by an oracle. Here’s a link to the full blue paper.

Contributors

As listed by the ENF, the core contributing teams of Yield+ are:

Note that Joe Louis was also mentioned as a contributor. *Added to the ENF list are the primary roles of each contributing team.

Supported TVL assets expect to include:

EOS/USDT is scheduled for Stage 1: Launch. The others expect to be activated during Stage 2: Support. Also scheduled during Stage 1 and 2 are 625K EOS quarterly rewards. 2.5M EOS in rewards is scheduled for the third stage: Acceleration.

Liquidity remains a persistent issue for the mainnet. The critical nature of taking immediate action has been stressed time and again by the core development community. It’s one that Block.one was supposed to help deliver.

Yield+ plays a role for both the mainnet and the soon-to-be-released EOS EVM. Officially named The Trust Network, the in-development EVM brings much-needed scalability and agility to the Ethereum environment. Because rewards will be denominated in EOS, The Trust Network will have a direct, positive impact on the EOS price. As for claiming rewards, users will have the option of either EOS or Tether. A stable EOS EVM is assured through the incorporation of Tether.

As much as the mainnet community places on liquidity, it’s no surprise that the ENF’s first product will be an EOS EVM. Ethereum is as liquid as blockchain gets, albeit in a slower, more costly environment. It’s also no surprise that the ENF’s association with working groups like Coalion+ and Yield+ will aid in bringing about deep liquidity. Look out for Q4 2022 as symbiotic relationships begin to develop and take hold.

The type of projects that will benefit from Yield+ are ones that are active, do not rely on voting, and support a greater liquid environment. Two projects that should have no problem qualifying are those already supporting core development:

Defibox and Pizza have been central to EOS DeFi for a while now. Their influence on the future of EOS liquidity undoubtedly extends further back than the Yield+ blue paper. Swap pools are also listed to illustrate how focused developers are on providing streamlined liquidity.

Other potential qualifying projects may be ascertained by using the criteria above and searching through Defi Llama. According to Defi Llama, EOS ranks 28th among all chains for TVL during May 2022. Two guiding initiatives mentioned in the ENF’s blue paper preview are:

TVL will be the primary metric for prospective dApp projects. How precisely qualifications will take place remains open for the Yield+ team to decide for the moment. The process will likely evolve until a satisfactory pool of genesis dApps gain their footing and understand how best to leverage the rewards system.

With the Blue Paper released on May 26, Yield+ already inspires new innovation. There’s a lot behind the liquidity initiative. For starters, the ENF outlined key deliverables as:

Funding allocations have been made for portal and smart contracts. Data analysis will be made available for the community to review.