Aim: To be THE DeFi cross-chain yield aggregation network hunting out the best yields & to gamify the process of yield farming for a better flow and experience.

Disclosure:

As Always Not Financial Advice

I am invested in this project but am not affiliated or a partner of it in any way

Positive Takeaways

• Very Active Discord from Community & Team
• Successful Deployment for the Polygon, AVAX & FTM ( EVM compatible Kernels)
• Yield paid in native settlement tokens (FTM, MATIC, ETH)
• Low Market Cap
• First mover & Fastest moving cross yield aggregator in the space currently
• No one else is currently doing the same, the tech behind doing this is pretty advanced and highly functional. Also, kernels on native chains enable you to be paid in the native currency.
• Team: The team has technically experienced the founder seems to be very attentive and intelligent of the tech and the space and competitors around him.
• It aims to be a DAO in the future
• I think it can be as big for DeFi as Yearn, Compound & AAVE
• DeFI 2.0 narrative longer-term or next stage DeFI solutions “cross-chain”
• All unlocks are finished by private and strategic investors.

Breaking down the name & concept

The concept of Yield aggregators let users in DeFi earn returns on their cryptocurrency holdings through yield farming or other yield generating strategies. Cross-chain versions of these enable you to do this still but on multiple different chains. Imagine Yearn. Finance but cross-chain; this project is similar but with its additional innovations.

When we speak of a node in the world of crypto, it is a computer that connects to a cryptocurrency network. The node or computer supports the network, through validation and relaying transactions.

This project uses a node as a yield aggregation node that functions as a collateralised central relay for the yield aggregator via 0x nodes designated kernels across different chains.

It intends to implement a modular cross-chain yield aggregation tool using routing instead of bridges. Doing this enables the implementation of modules that can work designated to the specific blockchains and where the yield is paid in the token of the particular blockchain.

Owl ( Twitter @ ) is the co-founder of 0x_nodes, who says he wants to promote 0x Nodes as an open API interface in the future that will allow hungry developers to develop on top of it, encouraging the development of more modules for strategies, which will be in their individual kernels.

The problem 0x is trying to solve

There is no cross-chain interface for synthetic assets to allow free exchanges between non-native environments, e.g. Layer 1 to an alternative Layer 1s.

If you were to be moving assets from Ethereum mainnet to other chains for deployment and then moving yields back into $ETH on Ethereum mainnet you’d find it’s slow and expensive. Investors also need to spend valuable time staying up-to-date with multiple yield sources on alternative chains, which is a cumbersome task that takes time, inevitably resulting in lost opportunity costs.

So their solution is to aggregate the yield strategies through projects like blue-chip DeFi protocols like JOE, AAVE, UNI etc., then pay the yield in the native settlement tokens (FTM, MATIC, ETH, et al.) and native $BIOS tokens. The solution here is integrating with remote protocols that are not interoperable by nature but can be utilised inside the 0x network.

Similarities to Web 2

The project reminds me a little of the function of Docker in Web 2.0 Applications.

Docker essentially enables you to separate your applications from your infrastructure so you can deliver software quickly, lightly and at scale. It does this by enabling applications to be put into containers, this enables access to any of these grouped applications in the cloud - accessible from anywhere. Meaning you no longer have to use the host operating system in order to access your apps. This results in overall efficient use of system resources, faster & more scalable use of applications. A real game-changer in Web 2.

In DeFi & Web 3 there is an emergence in a cross-chain ecosystem. The problem here being is how do you access or interact with other systems (or in this case other blockchains) to capture DeFi Yield opportunities on the multiple chains efficiently?

0x nodes kernels remind me of these container formats in Docker. Although they are not exactly alike, they both enable packaged up set modular functions to carry out cumbersome and costly process in order to be more efficient for its user. It’s just that in the case of 0x Nodes it is to achieve maximum utility of cross-chain yield aggregation on different apps on an array of chains.

The utility is maximised when the user doesn't need to bridge or complete the process themselves. There is a considerable effort, time and financial cost to doing so. Instead, they use these Kernels that carry out the hard work using their own private liquidity bridges aka routes.

How 0x nodes works

0x_nodes has private liquidity bridges that provide a transport layer for collateralisation of assets moving between chains. The 0x_nodes system meshes these synthetic asset classes with the public bridges that allow the fastest and best access to high liquidity across the multichain DeFi ecosystem.

The system will have multiple kernels, and depending on the legacy asset, a series of integrated modules will deploy these deposited assets into strategies across blue-chip cryptos.

PFA, which stands for Protocol Fee Accruals, will be accrued & generated by staked assets inside of these kernels if not deployed. Staked assets in a kernel that are not deployed into a strategy will receive PFAs. These fees will be generated from the tax on the yields of strategies.

Providing Routes Vs Bridges

No bridging is needed by the users because liquidity needed to yield is already deployed in a remote chain, accessible by providing routes. Imagine the routes like private passages or d0x nodes own private liquidity network.

Initially, users will see a terminal for access to the cross yield aggregation, which will remove the burden of having to do so yourself & evading the costly process.

A kernel will have a series of integrated modules that will deploy assets deposited into a collection of strategies across connected blue-chip DeFi protocols.

Within the kernel can be multiple different yield aggregation strategies; these strategies are built up of modules connecting all the components, which the community will be able to put forward and implement at a later date in the future.

Routes instead of bridging could be the popular option for maximalists who want to earn yield without moving their assets cross-chain. Instead, they get to keep their favourite assets on their native chain and earn a yield on them.

According to this, 0x nodes routes act as a liquidity network (LN), but in this case, it has its own private liquidity network, which the protocol has called an ‘interconnect’. It’s a peer-to-peer network where each node acts as a “router” that holds an “inventory” of the source and destination chain assets.

These networks leverage the security of the underlying blockchain; through locking and dispute mechanisms, users are guaranteed that routers cannot run away with user funds. The benefit of this is that it is a safer option for users who are transferring large amounts of value like here.

Value

This protocol generates value in different ways:

• Cross-chain yield strategies, where you earn a yield on your staked assets in the native kernel you deposited with. E.g if you staked on the ETH kernel, you get ETH & BIOS
• You can additionally stake the Bios you gain for more ETH or what strategy you implement.
• Able to stake anything without a strategy and earn bios just for staking.
• Fast and secure because they are locally verified systems and do not require global consensus
• It can be more capital efficient than bonded/insured external validators because capital efficiency is tied to transaction flow/volume rather than security. Equal flows between multiple chains can have a built-in rebalancing mechanism and liquidity networks to facilitate sizeable economic throughput.
• Modularisation of the kernels, this process involves creating multiple attachable pieces that that can access any chain serving a specific function and then enabling it so in the future community developers can develop these for the same reasons but also means The system is very versatile and flexible with the unique strategies that can be implemented.

This is a basic visualisation of how it works on one chain, but it will look different once the deployment is done across multiple chains.

Ox Nodes Strategies

These are what is implemented to generate yield after you deposit into the kernel.

1) SAAL: sushi acquires and liquidate

SAAL strategies participate in sets of 3farms. 3farms are pools of three sushi farms. SAAL strategies deploy into the 3farm evenly and execute a double-stack (v2) deployment, where the two-token deployment is then staked for sushi and rewards. Sushi and rewards yield is immediately liquidated and made available to users, PFA, and the kernel. Users receive liquidated yield in native chain tokens (ETH, Matic, AVAX, FTM etc.).

Share of the pool in the 3farm is a lot like an LP position, except that you contribute your share of ETH to the entire strategies entries. The whole pool has access on each farm, rather than the individual’s entry. There is also less concern about IL in terms of USD because their concern is the ETH value/size appreciation

2 ) Interconnects for cross-chain strategies

Interconnects allow deploying assets on one chain and operating them, with yield, on another. 0x’s private liquidity networks or ‘Interconnects’ do not move assets across the chain. Assets are matched with a liquidity provider on the remote chain and can participate in 0xnodes strategies on the remote chain. When the remote chain releases the assets, they are unlocked on the native chain.

3 ) Community strategies

0x_nodes platform is open-sourced and encourages the community users to publish new strategies. BIOS token holders will nominate and vote on new protocol integrations and strategies when they introduce a governance framework.

Token & Tokenomics

Total raised: $4,200,000

Total Supply: 10,000,000

Private Sale: 1,400,000

Public Sale: 100,000

FDMC: 50,000,000

Max supply 10,000,000 million tokens

The native token ERC-20 token is $BIOS; it is the utility token for 0xnodes. They are used for staking, liquidity, bonding, and native and remote settlement layer asset.

$BIOS deposits may complement deposits of other assets but are never required for the system’s functioning. Depositing $BIOS to the 0x_nodes system to enhance the received yield.

In simplified format, the function of $BIOS is used to increase the base yield for the user as the underlying protocols generate yield back into the 0x_nodes kernel, $BIOS will be emitted to the user.

Through the $BIOS token, and utilising the $BIOS token into a 0xNodes module, you are opening the door for protocol fees to be collected, which you can then move through the network freely. $BIOS token will be issued through depositing assets (as single assets) into a liquidity module in the 0xNodes network.

The liquidity module is designed to be perpetual. A single liquidity module will replenish the supply of $BIOS inside the contract to continue distributing $BIOS indefinitely without inflating the collection of the $BIOS token.

Executed by the protocol buying the BIOS will emit, so it doesn’t cause inflation as it’s not printing new BIOS. Market buying the bios to add some buy-side pressure, currently as still in heavy development do not have the market to buy during the latest epoch ( an era of time within a blockchain network roughly 609400 seconds which is approximately 7 days) where it looks to be completed in the future.

Right now, BIOS will earn ETH (eventually other assets) and will be used as a governance token in the future. So, staking BIOs now will be processed, and depositing will earn you ETH.

PFA (Protocol Fee Accruals by staking assets) Staked assets in a kernel that are not deployed to a strategy will receive PFA. Staked assets are not leveraged or deployed. PFA is funded by a tax on yield repatriation.

Recent Updates

0x_nodes highlighted in its first Medium post a road map that they are working in Phases, Phase I: Deployment on the ETH mainnet & Phase II: EVM mesh network (EVM compatible coins like AVAX, FTM, MATIC).

Currently, they are only deployed on ETH, and just started on Polygon. This is in addition to the Kernels, which provide routed access to strategies on these other chains.

Who are their partners?

0x_Nodes closed a $3.7m strategic fundraising round in May 2021. Investors included Techemy, Magnus, Rarestone, SkyVision, MW partners and 20 others.

The advisory board is comprised of John Lilic (Polygon), Dustin Byington (Wanchain), Jonathan, Pootz (Magnus Capital), and, Karbonbased (GMI advisory board).

Strategic partnerships include:

• Kairon Labs — Market Making
• Blockchain Labs — Token Minting, Vesting & Farming contracts
• Samurai/CFI — IDO partner
• Bravenewcoin.com — on-chain Price-Oracles/Market Data Infrastructure

Competition & Risks

It is situated in the part of the market of the cross-chain yield aggregators, where the competition is not significant.

• KingDeFi ( ​​KRW)

A Binance smart chain built a multichain yield aggregator that utilises all bridge bridging networks to transfer assets across the chain.

They appear to work with Allbridge to continuously bridge assets across chains to different strategies.

In the future, Yearn Finance will likely make the step for cross-chain yield aggregation.

Owl, the founder, is against doing swaps cross-chain and is more focused on directing liquidity through the most efficient EVM routes for ease of swap for the end-user. Less focus on the swap and more emphasis on the engine.

Risks

Building robust cross-chain bridges is a challenging problem in distributed systems and could prevent many risks & challenges.

• Stress testing: How will the various bridge designs perform under times of chain congestion or protocol- & network-level attacks
• Risks could be the emergence of Yearn Finance cross-chain products coming soon.

https://twitter.com/iearnfinance/status/1446243257336229912?s=20

Roadmap

Notes on the road map

• The team have met all their targets and continue to hit highs
• The only exception so far is that BSC deployment hasn’t been focused on, and the focus has been on the other chains.
• Deployment on more Networks is the priority at the moment.
• Kernels on other chains are currently active, and you can use them.

Final Remarks

The team are building a product that is both innovative and robust. The challenge will come through making all the chains compatible and functional in the long term.

Once all chains are deployed with operating function kernels, the project will begin to thrive as it will start to gain traction from lots of different chain maxi or even cross-chain enthusiasts who want to get the most out of their yield.

A strong community with lots of participation and incentives early on will help make their DAO a success when it is formed. BIOS that will be used in electing new strategies will help drive forward a DAO community and contribute to yield generating strategies.

No other project is currently doing anything similar in the slightest. I would say that this is a vital component of the future of DeFi, and it’s almost DeFi 2.0 in its nature.

So, how long before users catch on to this innovative protocol?

FAQ’s

Is there a Gas cost for using the platform on ETH?

Only gas costs on end-user are deposited into the local kernel.

Fees?

Yes, but they do not t take from the deposit, only take from yield generated by the user.

​​How long does it take to pull out your bios after you have staked?

It should be anytime you like but may be slightly longer during the early stages of the project where it’s going through upgrades.

Where to Buy Bios?

Sushi & Uniswap

Does 0x Nodes have a Bridge?

It has a private liquidity route that directs it through their own private liquidity network

Can I use leverage?

Currently, stacked assets are not utilising leverage at the current time.

Useful sources:

*Medium *https://medium.com/0x-nodes

*Website *https://0xnodes.io

*Community Github: *https://0xnodes.github.io/community/

*White (Lite) paper: *https://0xnodes.io/assets/documents/LITEPAPER.pdf

*Onsen by Sushi AMA *https://www.youtube.com/watch?v=m5vAq0qonB0

Understanding the move towards cross-chain and bridging:

https://medium.com/1kxnetwork/blockchain-bridges-5db6afac44f8