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Maya Protocol Native Assets
$CACAO, $MAYA, and $AZTEC
Maya Protocol ecosystem utilizes 3 distinct tokens within its framework:
$CACAO is our flagship token, and we will have 100M of them. They will all be minted at once, and 90% of the total supply will be distributed in the Liquidity Auction. The remaining 10% will be allocated to the Impermanent Loss Protection treasury.
Aside from being required to run a node, they can be paired against other assets inside our liquidity pools to earn a percentage of the transaction fees generated by swaps.
$CACAO is the asset which powers the Maya Protocol ecosystem (MAYAChain & AZTECChain) and provides the economic incentives required to secure the network. CACAO has three key roles which are described below.
- 1.Liquidity (as a settlement asset)
- 2.Security (as a sybil-resistant mechanism, and a means for driving economic behaviour)
- 3.Incentives (paying out rewards, charging fees, subsidising gas)
Transmitting Purchasing Power
Since CACAO is pooled 50:50 alongside external assets in its pools, when the value of those assets increase/decrease, the CACAO pooled will also increase/decrease by being arbed out or in. The CACAO unit value may not change, but the quantity of CACAO in the pool does. This means the system is always aware of the value of the assets it is trying to secure - it's simply the quantity of CACAO in all its pools.
Once it is aware of the value of the assets it is securing, it can use incentives to ensure security of those assets.
A rule of thumb is for every $1m in multi-chain assets pooled in liquidity pools, $1m of CACAO is required to be pooled along side. Due to a mechanism called the Incentive Pendulum, $2m in CACAO will be driven to be bonded. Thus, $1m in main-chain assets will cause the total value of CACAO to be $3m in an equilibrium. Thus liquidity pools have a positive effect on the monetary base of CACAO.
Providing Liquidity Incentives
Since CACAO is the pooled asset, incentives can be paid directly into each pool. This extra capital is owned by the liquidity providers, and over time, slowly "purchases" the paired asset via arbitrage. Thus CACAO liquidity incentives can drive real yield to LPs.
Solving O(n^2) Problem
Without a native settlement currency, each asset would need to be pooled with every other asset, which would eventually result in hundreds of new pools to be created for just one new asset, diluting liquidity. Having CACAO as the base pair allows any asset to be guaranteed to swap between any other asset.
Sybil-resistance refers to the ability to prevent someone masquerading as many identities in order to overcome a network. Bitcoin uses Proof-of-Work (one-cpu-one-vote) to prevent a network take-over. Ethereum 2.0 will use Proof-of-Stake (32-eth-one-vote) to prevent a network take-over.
MAYAChain is a Proof of Bond network instead. MAYANodes commit a bond in order to be churned in. However, this bond isn't just used to identify a node (give them a voting slot), it is used to underwrite the assets in the pools. If the node attempts to steal assets, then their bond is deducted to the amount of the assets they stole (1.5x), and the pools are made whole. Additionally, if nodes misbehave their bond is slashed, ensuring reliable service.
The Incentive Pendulum ensures that Nodes are incentivised to continually buy and bond enough Cacao each time to maximise their gains - which is a maximum when there is 67% of CACAO bonded and 33% pooled in pools. If the pools are holding $100m in capital, then the value of CACAO in the aggregate bond is $200m. Thus all assets can be underwritten.
The bond is extremely liquid - any CACAO holder can immediately enter or exit their position since CACAO is the settlement asset in all pools. Thus, when a node churns in, the cost basis of their bond is known to them and not an arbitrary figure. This means a node bonding $1m in CACAO will never contemplate making a decision to steal <$1m in capital from the network, else they will lose overall.
CACAO is the native currency of MAYAChain and is consumed as transaction fees on the network. All swaps are charged both a fixed network fee, as well as a dynamic slip-based fee. This prevents various attack paths such as denial-of-service attacks, as well as sandwich attacks on a pool. Learn more about fees here:
The network continually consumes gas as it makes outgoing transactions (as well as internal transactions). Gas on networks such as Bitcoin and Ethereum becomes complicated fast, so MAYAChain doesn't make much of an effort to track every minutia of gas consumed. Instead, nodes are free to use at-will the base assets
BTC.BTC, etc in order to pay for gas. These assets are used directly from the vaults. MAYAChain then observes outgoing transactions, reports on the gas used, and then pays back the liquidity providers in those pools to the value of twice the amount of gas used (in CACAO).
Paying out Emissions
After fees are charged and gas is subsidised, then MAYAChain computes the block reward, divides it based on the Incentive Pendulum algorithm, and then pays out to Bonders and Liquidity providers.
This drives Nodes to bond the optimal amount, and pays Liquidity providers for their contribution of liquidity.
Learn about the Incentive Pendulum here:
In addition to the roles mentioned above, CACAO’s price has two factors; 1 a deterministic value based on the liquidity within the network and 2; a speculative premium.
The 1:1 pool ratio that persists in Maya means that CACAO will always be worth at least 1x the Asset TVL in Maya Protocol. Thus, if $1,000,000 worth of non-Cacao tokens are staked in Maya Protocol, the market cap of CACAO will be at least $1,000,000 as well. And like any token, stock, or asset in the world of finance, speculation around future value encourages additional upward price pressure.
The 1:1 ratio is just the minimum or the deterministic value of CACAO.
$MAYA tokens can be used to participate in our protocol's total revenues, and there are exactly 1 million of them. They serve as our initial stages' funding mechanism and, by design, keep incentives for our developer team to continue their hard work in the short-term and long term.
$MAYA captures 10% of all the protocol revenue. Those who hold $MAYA tokens will be distributed $CACAO every 24 hours to the wallet that holds the $MAYA token. For every $9 earned by LPs/nodes, $MAYA holders, including founders/devs, earn 1$, incentivizing long-term growth and value accrual.
How will $MAYA Airdrop work?
7% to Rune Owners. 7% to Early Nodes. 7% to Tier 1 Liquidity Providers. 1% to Maya Mask NFT Holders (80% built into the Maya Mask, 20% airdropped as tokens)
78% Dev Fund.
Will there be a liquidity pool to trade $MAYA?
There will be no liquidity pool for $MAYA, and it will not be tradable on Maya Protocol. It is meant to represent the protocol revenue and is not easily tradable. Another DEX/CEX could list $MAYA for trading if they desire.
MAYA vs CACAO
$AZTEC tokens are very similar in design to $MAYA tokens as they are also revenue share tokens, that capture 10% of all the AZTECChain revenue. $AZTEC will be launched with the AZTECChain by the end of year.