⬆️Earthquake V2 FAQ

Welcome to Earthquake V2 FAQ page, designed to address common inquiries and provide valuable information.

1. What is Earthquake V2?

Earthquake V2 is the latest version of Y2K Finance, introducing enhanced features for hedging, underwriting, and pricing the risk of pegged assets & speculate on exotic assets.

2. What are the main features of Earthquake V2?

V2 highlights include Carousel, an improved user experience allowing automatic rollovers and 24/7 deposits. It also introduces an "information tax" to level the playing field between early and late depositors, expands oracle and asset flexibility, and offers an open builder platform for maximum composability.

3. How does Carousel work?

Carousel enables automatic rollovers for vault deposits, eliminating the need for manual withdrawals and redeposits every epoch. Users can deposit anytime with the new deposit queue, improving convenience.

4. Can user delist from Queue or Rollover?

Users can delist from the Rollover before their position is minted. Rollover queue is executed/minted after the existing epoch ends & before the next epoch starts.

Queue deposits are early deposits to Earthquake Vaults. They cannot be delisted nor cancelled.

4. What is the "information tax" aka "deposit fee"?

The "information tax" is a deposit fee that increases as an epoch approaches, leveling the playing field and benefiting $vlY2K holders by compensating for information asymmetry among depositors. Each market's information tax is defined individually.

Queue depositors' will be subject to minimum information tax, since their deposits will be made by the relayers at the beginning of the deposit period.

Calculation:

F = min (\frac{P*a}{σ} ,0.5 ·P)

F: Information Tax Fee

P: Average Earthquake Premium (30-day lookback)

α: Average Global DeFi Fee

σ: Historical Underlying Asset Volatility (30-day lookback)

Rollovers are not subject to information tax.

Update: Information tax has been scrapped as of 07/10/23.

Vault deposits are no longer subject to information tax.

5. How does V2 enhance flexibility?

Earthquake V2 allows the use of any oracle provider for price feeds, expanding the selection of pegged assets on Earthquake. Vaults also accept other ERC-20 assets, increasing the possibilities for deposits.

6. How does V2 support composability?

Earthquake V2's codebase enables seamless integration of Earthquake into other protocols, facilitating the creation of customized insurance products and hedged farming vaults. It expands Y2K's reach and value accrual.

7. Are there any additional features?

Earthquake V2 introduces one-click $Y2K rewards, simplifying the process of earning rewards. Vaults now use user-friendly terminology, with "Collateral" and "Premium" vaults replacing "Risk" and "Hedge."

8. What are the benefits of Earthquake V2 for users?

Earthquake V2 offers a more powerful and user-friendly experience, with improved rollovers, enhanced flexibility, and the opportunity to earn rewards effortlessly. It serves as a cornerstone of DeFi, enabling pegged asset exposure.

9. What's next for Y2K Finance?

Earthquake V2 marks the beginning of Y2K's journey to become the ultimate marketplace for pegged asset exposure, risk valuations & market manipulation for exotic assets. It will continue to innovate, expand its product offerings, and serve the broader DeFi ecosystem.

Note: For more detailed information and updates, please refer to the official Y2K Finance documentation and announcements.