Farm XYZ Decentralized Structured Assets Protocol Whitepaper

Our mission is to bring yield farming solutions to everyone, through a simple, transparent and easy to use platform.

Yield farming can be a very lucrative investment but not all investment opportunities are born equal and keeping track with the expanding opportunities can be a challenge for most common investors.

Farm XYZ will build a central place for investors to discover, invest and track their yield farming investments.

The Farm XYZ platform will be built in layers that are built on top of one another.

Layer 0: XASSETs - Invest and manage
- Marketplace with yield farms from multiple platforms
- Include other types of yield producing instruments like DRIP, OHM, etc
- Invest from any coin, all conventions are done automatically through the right decentralized exchange
- Liquidity farm & associated pool investment in a single click: Auto calculations of the right asset proportions, LP pool deposit & associated LP Token Farm deposit
- Automatically stack investment on multiple platforms to get the best yield
- Track investment value in USD in real-time
- RealAPY© tracking that calculates the APY you actually get in USD, including all losses: fees, impermanent loss, withdrawal fees

Layer 0: XRISK - Risk management
- Safety score: Risk analysis for each investment option, scored by token stability, impermanent loss risk, cost of gas fees for the network operations required to maintain the investment
- Create limit and stop orders to automatically exit from XASSET positions ( 1Inch like protocol )
- RealAPY© tracking
- Volatility index

Layer 0: XAPI - Open platform
- Open API that can be used by any other project, bot, quant analyst, etc to manage fund distribution and invest in diverse XASSETs using a single API

Layer 1: XFUNDs - Diversify and track
- Create yield farming funds and list them on the platform, earn fees if other investors invest through the fund
- Invest in diversified yield farms and lower risk by just investing in a fund
- Funds are issued their own token that can be traded like any ERC-20 token, it’s value being calculated by the assets invested in the yield farms
- Auto rebalancing index funds based on different conditions( top 10 APYs, top 10 stable coin APYs, top 10 APYs on BSC, top 20 APYs on BSC, etc)
- Auto-compounding index funds

Layer 2: XBRIDGE - Cross-chain investing
- Investments can be bridged cross-chain to different farms
- Funds can contain multi-chain assets

Layer 0: XASSETs - Invest and manage

Introducing XASSETs

An XASSET is a smart contract layer that behaves like a traditional ETF, it automates investing in underlying yield farming assets and exposes an ERC20 token as a fund share. The fund shares have a price in USD calculated at each block by calculating total value invested in the ETF and dividing by fund shares.

Each asset will behave in the following way:
- The management contract will own all assets invested by the fund
- The equivalent XASSET tokens will be minted by the management contract whenever a user invests into the vehicle.
- Each XASSET token will represent a fixed share of the management contract vault.
- The management contract will handle receiving the right funds, checking funds are valid, investing those funds in the underlying asset and issuing the respective shares to the investing user.
- When a user wants to withdraw funds/sell the XASSET token, the management contract will handle respective funds transfer from the vault and to the user who owned the XASSET token.

Our platform will integrate and list a diverse set of investment opportunities from across multiple projects and networks. These will be listed first and foremost as XASSETs and will allow any investor to quickly invest in multiple opportunities.

This will be achieved by a set of management smart contracts that will abstract away the interface used by each project and expose a standard interface to deposit, calculate yield, withdraw and compound, thus creating a standard asset that our platform can manage.

Examples of types of assets we can list:
- Liquidity farms
- Liquidity farms combined with their equivalent LP pools, into one asset - see below for details on how this works
- Staking liquidity providers like $LDO
- Passive income generation farms like $DRIP
- Reserve currency farms like $OHM & it’s clones
- Other distributed farming platforms like $MCC or SW Yield Fund
- Automated balancing funds like $BALANCER
- Stable coin farming like $CURVE
- Any many many others

Invest from any coin

Investing in any XASSET will not require the user to deploy the funds in a specific coin.

Our platform will implement an exchange management smart contract that will choose the best option to convert the assets the user has in their wallet to the assets needed for investing.

The exchange management contract will handle all coin conversions automatically, by choosing the best DEX option to convert the tokens and minimize gas fees.

We’ll integrate multiple DEX exchanges to expand the option and optimize both gas usage and price.

Liquidity farm & associated pool investment in a single click

Investing in a liquidity pool is not an easy task, you have to convert your tokens in the right amounts, deposit them in the liquidity farm, then take the LP token and stake it in the associated pool. Our platform will allow the user to do all those operations automatically, and the reverse when they withdraw.

Right now if you want to invest in a Sushiswap pool from USDT you have to do these operations:
1. Approve USDT contract
2. Convert USDT to SUSHI
3. Convert USDT to WETH, in the right proportion
4. Approve SUSHI contract
5. Approve WETH contract
6. Add SUSHI & WETH to the liquidity pool
7. Approve LP token staking contract
8. Stake LP token in a farm

Then for compounding you need to do these 4, per day:
1. Harvest rewards
2. Convert a part of the SUSHI to WETH
3. Add liquidity
4. Stake LP tokens

Then when you want to withdraw you need to do these steps:
1. Withdraw LP token
2. Withdraw liquidity
3. Approve WETH contract for exchange
4. Approve SUSHI contract for exchange
5. Convert WETH to USDT
6. Convert SUSHI to USDT

Using our platform the only things you’ll need to do are:
1. Buy X-WETH-SUSHI-LP XASSET at $14.53
2. Sell X-WETH-SUSHI-LP XASSET at $16.78

That’s it, everything else is done automatically for you behind the scenes.

Track investment value in USD in real-time

On our platform users will be able to track their investments in yield farms by tracking yield in USD, seeing it on a graph, tracking actual returns in USD so you can always compare to other farms.

Each XASSET smart contract will implement a price calculation function that will be able to calculate the price of each XASSET share at any point in time, by looking at the price of the underlying investments, the yield generated and converting all of those to USD.

Automatically stack investment on multiple platforms to get the best yield

In some cases the best strategy to invest is to go to multiple platforms and gather yield from all of them, for example, you can stake ETH on Lido, then stake stETH on Aave, Curve etc.
Our XASSETs will do all of that for you automatically while also tracking real asset value like we described above.

XASSET Fee Strategy

20% Performance Fee: Deducted from yield earned every time a vault harvests a strategy.

0.5% - 2% Management Fee: Flat rate taken from XASSET deposits over a year. The fee is extracted by minting new shares of the XASSET, thereby diluting vault participants.

Layer 0: XRISK - Risk management

Safety Score

The safety score is a grade that we calculate by looking at different variables like:
- How high the market cap of the underlying assets is
- How high the impermanent loss can be(market caps & volatility of the assets)
- How complex the investment strategy is and how much we need to automate
- How much testing the investment strategy has
- How liquid the assets are on all decentralized exchanges
- We check DefiYield’s smart contract audit database for audits and take those into consideration too

This gives the user an easy to use overview of how secure the investment in the asset is.

Limit & Stop orders

The XASSET contract will implement the Permit 712 standard & will be able to be traded by using a signature.
This will allow a network of bots to check and execute limit & stop orders automatically when network conditions are met.
Limit & stop orders will cost a small fee that will be earned by the bot that executed the transaction and will be automatically deducted from the assets being sold/bought.

RealAPY© tracking

RealAPY© tracking that calculates the APY you actually get in USD, including all losses: fees, impermanent loss, withdrawal fees

We indexed the blockchain block by block, and calculated prices for each XASSET at any point in time. This allows us to generate true stock charts in dollars, calculate real returns and not inflated APY values.
The RealAPY feature will tell you what the returns would be if you invested 1$ in each specific XASSET 1 month, 3 months or 6 months ago.

Volatility Index

The Volatility Index, measures volatility in a financial instrument. When the value is low, volatility is low. When the value is high volatility is high, which is usually accompanied by market fear.

We calculate the volatility index for each XASSET for a period of 6 months.
We show this compared to USD, BTC and ETH.

Layer 0: XAPI - Open platform


The Farm XYZ platform will allow automated trading of all XASSETs listed on the platform by using a publicly accessible API.
This will allow other developers to integrate and build on top of the platform.

There will also be an API available at the smart contract layer, each XASSET will have a public API documented on our website that anyone can use to trade in and out of the asset.

Layer 1: XFUNDs - Diversify and track

What is an XFUND

XFUNDs will allow investors to gather funds in a single pool managed by a single investor or by a team of investors. The funds managed by an XFUND can only be invested in XASSETs or other XFUNDs so we’ll make sure that these are real investment assets and not a random coin off the internet.

XFUNDs will work like a decentralized mutual fund giving users an easy way to diversify their investments and decrease risk, while allowing them to be in control, see what the fund manager is doing and track performance over time.

Here’s a diagram of the parts of the system:

XFUND Managers

Any user of the Farm XYZ platform can start a fund, either for his own portfolio or to have others invest in the fund.
If others invest in the fund the manager can set a performance fee that he earns for managing that specific fund, no management fees can be charged.
The fees charged by each fund will be clearly displayed on the website so users can understand what they are investing into.

Configurations per fund:
- Maximum allocation per asset
- Public/Private
- Fees:
-- No yearly management fees
-- Performance fees - fees deducted from the yield generated by the asset
-- Limited join/exit fee

Lower investment risk by investing in XFUNDs

The best way to lower investment risk is to diversify your investment. Managing a diverse portfolio can be a pain though, from choosing what investments to make, tracking them, rebalancing them, etc. All these are handled by just creating and/or investing in an XFUND.

Funds are issued their own token that can be traded like any ERC-20 token, it’s value being calculated by the assets invested in the yield farms Auto rebalancing index funds based on different conditions( top 10 APYs, top 10 stable coin APYs, top 10 APYs on BSC, top 20 APYs on BSC, etc) Auto-compounding index funds

Layer 2: XBRIDGE - Cross-chain investing

Investments can be bridged cross-chain to different farms

The FarmXYZ bridge will allow investments in assets cross-chain.
This will be done in multiple ways:
1. LayerZero integration: transfer stablecoins & function calls across chains and invest in different assets.
2. Farm XYZ custom bridge: generate XASSET liquidity on one chain and allow users to trade it on others.

Since each XASSET will be a smart contract on the chain of each platform, we’ll be able to transfer stable coins & execute function calls using our integration with LayerZero & Stargate. This will allow users to easily invest in any asset cross-chain without worrying about bridging assets back and forth, all of that will be automated for him.

Our custom bridge solution will allow even more flexibility by allowing us to create liquidity in an XASSET on one chain and letting users trade the XASSET shares on another chain, all of this while still respecting real-time prices for the asset.

Funds can contain multi-chain assets

Since XFUNDs run on top of the XASSET layer that will support cross-chain investing without any API change, this will allow XFUND managers to create funds that invest in multiple chains from a single interface.