.png)
A single-sided staking feature where CACAO holders can earn yield without facing impermanent loss. Learn how the CACAO pool strengthens Maya’s security model, evolves income distribution, and offers a low-risk opportunity to boost your crypto rewards.
Maya Protocol will be launching CACAO pool soon: a single-side staking feature that offers CACAO holders the opportunity to earn yield on their asset. Eventually, it will also allow depositors to bond their CACAO pool units, in turn contributing to Maya Protocol’s security bond.
CACAO pool is a stand alone module that holds the deposited CACAO. In this way, it remains separate from Maya’s Liquidity Pools (LP); and although this means CACAO pool does not deepen LP liquidity, its depositors will face zero impermanent loss. The only provision CACAO pool depositors may be subjected to is a lock period of a few days before they can withdraw (i.e. between 3-7 days)—this is simply to avoid excess volatility in the pool.
With the deployment of the CACAO pool, the allocation structure of Maya Protocol’s income—earned, of course, from swappers’ slippage fees—will undergo a reiteration. Historically, 10% of total protocol income was allocated to Maya’s Reserves, primarily to cover Impermanent Loss Protection.
With the implementation of the CACAO pool, this allocation to the Reserves will reduce by half —e.g., 5% of total income— while the other 5% will be directed to the CACAO pool. This percentage will be distributed proportionally to poolers based on their deposit size.
CACAO pool will also evolve the design of Maya Protocol’s security bond. Currently, this is composed solely of LP units contributed by its node operators or pool bonders. In the near future, depositors in the CACAO pool will be able to bond their CACAO pool units. This will help deepen Maya Protocol’s security bond, while simultaneously providing additional yield to depositors. Much like the bonding of LP units, CACAO pool bonds seeking to withdraw will need to wait until their node has churned out, before they can unbond; only then may they withdraw.
CACAO pool thus promises a win-win for both Maya Protocol and the holders of its primary asset: Where the first will be substantially strengthened in its security model, the latter will be given a lower-risk opportunity to earn single-sided yield—all while enhancing the utility of CACAO.
For further reading, see this post on CACAO pool by Maya Protocol’s X account!
.webp)
