Mayz Protocol, Building Index Portfolios on Cardano
Episode by Peter Bui on March 27th, 2023
MAYZ is a decentralized finance (DeFi) protocol that enables users to invest in the early growth of DeFi on Cardano, a third-generation blockchain that aims to solve scalability, interoperability, and governance issues. MAYZ allows users to purchase MAYZ Index Tokens, which represent a share of a basket of Cardano tokens that grow in line with the ecosystem as a whole. The recent implementation of smart contracts on Cardano has led to the growth of hundreds of new DeFi projects building on the ecosystem, and MAYZ provides an easy way for investors to gain exposure to this growth. The Cardano Foundation is also focused on bringing scaling solutions to the network, which will allow for even greater growth and adoption of DeFi on Cardano in the future.
How Does Mayz Do It?
MAYZ is a decentralized protocol that allows the creation and management of investment funds by its community members. The protocol uses smart contracts and economic incentives to enable MAYZ token holders to propose, approve, create, and manage funds.
The protocol has different types of members, including investors who hold LP tokens from the protocol’s funds, MAYZ governance members who participate in MAYZ governance and can make and vote proposals, MAYZ fund managers who create and manage MAYZ funds, and MAYZ escrows who provide services to investors to help them mint LP tokens from the funds.
To create a new fund, the fund manager must stake a certain amount of MAYZ into the Creator Fund Smart Contract (CFSM) and submit a proposal to MAYZ Governance Members. Once the community approves it, the Fund Manager must stake MAYZ to generate the fund & set the initial parameters, and then perform an initial investment for the fund to be operative.
Another essential role is the Fund Escrow (FE), which receives funds from the investor, performs the deposit transaction into the Portfolio Management Smart Contract (PMSC), gets the accordingly LP token from the SC, and then sends it to the investor to complete the operation. The escrow service goal is to ease that process providing that the investing transaction can be complicated, costly, and time-consuming. To become an accredited escrow, MAYZ must be staked to provide an incentive for honest behaviour.
The MAYZ’s Initial Stake Pool Offering (ISPO) is a fundraising mechanism that allows investors to contribute ADA to the MAYZ protocol and receive MAYZ tokens in return. MAYZ has partnered with the [1MATE] stake pool to facilitate the ISPO.
During the ISPO, investors can delegate their ADA to the [1MATE] stake pool, and in return, they will receive MAYZ tokens at the end of the ISPO period. The ISPO will last for 55 epochs, starting at epoch 378.
TosiDrop will be responsible for the distribution of MAYZ tokens to delegators once the claim window opens. The ISPO aims to raise funds to develop the MAYZ protocol, which aims to create indexes of the Cardano ecosystem to enhance the blockchain and allow the flow of wealth and capital within the network.
You can find out more about Mayz at: https://mayz.io/