Decentralizing Credit Markets with Exactly on Beefy

When thinking about the development of decentralized financial instruments, its useful to analogize the role of liquidity as something similar to water coming down from the hill. Fresh sources take time to emerge, and will continually wear away any obstacles in their path; and free-flowing bursts of water bring danger through their volatility. To harness its potential for irrigation, consumption and civilization more broadly, we must find ways to control the flow of liquidity, overcome the natural obstacles and direct it towards its potential.

This message is at the very core of the mission and architecture espoused in Exactly Protocol’s white paper. The project aims to discover the solution to the problem of fixed interest rates, to unlock the full potential of decentralized liquidity. It promises to deliver an effective and scalable model to control the flow, and harness liquidity safely and stablely for everyone.

After launching Beefy’s first Exactly vaults in April 2023, we’re glad to say our relationship with the project has gone from strength to strength. So today, we’re excited to give our community a fuller introduction to the Exactly Protocol, and to celebrate our progress with some tantalizing new incentives. 🔥

Exactly

Exactly is a decentralized credit market that provides users on Optimism with interest on deposits and overcollateralized loans. Its interest models cover either fixed or floating interest rates. The projects aims to discover the solution to the problem of fixed interest, by using funds from its variable-rate pools to facilitate fixed rates. By having the demand for fixed rates pay a premium to those suffering variable rates, Exactly tackles the risk that volatility introduces, allowing DeFi to unlock the full potential of fixed rates.

The protocol itself is super straightforward. Select from one of the handful of supported assets to deposit or borrow, choose either a fixed-rate deposit duration or an open-ended variable rate, and hit deposit. Done! And with additional rewards from Exactly and Velodrome, you’ll easy earn better-than-market-rate returns on their selection of assets. Or alternatively, you can just come to Beefy, and let us autocompound them to earn even higher APY. 😉

Exactly also recently launched its $EXA governance token, which will provide holders with the power to vote on the future direction of and changes to the protocol. This will include key decisions like introducing new collateral types, setting collateral requirements, adjusting the terms of borrowing/lending and managing the use of token incentives. You can get your hands on some $EXA through the EXA-WETH liquidity pool on Velodrome now.

Boost

To celebrate the blossoming partnership between Beefy and Exactly, we’ve agreed to hold a vault Boost throughout August on our EXA-WETH Vault! 🎉

Together, we’ll be boosting your returns with additional $OP rewards. This is on top of the basic deposit yield, $EXA and $VELO V2 rewards that our Beefy vault is already autocompounding. Bringing all this together, we’re talking about some serious yields.

For users looking to get access to some $EXA, you can zap into the vault on Beefy with just one click from any of your favourite bluechip assets and stablecoins. From there, just hit Boost Vault to start accruing $OP rewards. We’ll be running the Boost from Thursday 3 August for 4 weeks, leaving plenty of time to soak up all those extra rewards.

Control The Flow

When new liquidity bursts onto the scene, the results are often volatile. Just like the flow of water down from the hill, credit markets need to mature and come under control to become useful to day-to-day users. With Exactly’s novel technique for achieving fixed-rate interest, DeFi can finally control the flow of liquidity in a secure and decentralized fashion.

We at Beefy are thrilled to be working closely with Exactly as they continue to roll out their solution for fixed-rate interest. And now’s your chance to join us, by soaking up those boosted rewards on your $EXA with Beefy. 💧

Exactly Protocol | White Paper | Documentation | EXA-WETH Vault