Yeti Finance Technical Docs
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How Does Yeti Finance Work?
Earning with Yeti Finance
About Yeti Finance
Overview
Depositing Collateral
Yeti makes it simple to borrow against your assets. After borrowing YUSD against your assets, you can use YUSD to earn yield within the Yeti ecosystem (i.e. stake YUSD in stability pool or use YUSD to provide liquidity) or you can sell YUSD for another asset you want exposure to.
Stakers can expect who borrow can expect significant APRs. Currently the ETH-AVAX Joe LP Pool has 12% APR, with the staking of JLP tokens in Trader Joe farms giving an additional 29% APR. This totals 41% APR, plus the users will be able to borrow against this to receive YUSD which can be traded for more yield-bearing assets.
We can run through an example here: A user deposits $10,000 worth of ETH-AVAX JLP Tokens. They can earn 41% APR on this collateral. With a reasonable 200% collateral ratio, they take out $5000 as an interest-free loan, and deposit it into another protocol. Following this, let's assume they keep investing into ETH-AVAX Joe LP Pool. They now have another $5,000 in JLP that they can stake again into Yeti Finance. If they stop here and don't choose to keep borrowing, they have a total APR of 41% base + 20.5% effective APR on the base asset. In total they get 61.5% APR, in addition to potential YETI rewards mentioned above.
Staking YUSD in Stability Pool
Stability pool stakers earn profit from liquidations as well as significant YETI rewards. Stakers will get rewards in YETI according to the amount and time staked. But early stakers will receive the highest rewards. The stability pool could deliver APRs of 42%+ on stablecoins.
Providing Liquidity for YUSD
We will be providing a significant portion of the YETI Rewards to Liquidity providers in Trader Joe pools and the Curve pool when it opens. This is to incentivize people to use YUSD to help the protocol. More info here.
Providing Liquidity for Yeti Tokens
We will be providing a portion of the YETI Rewards to Liquidity providers in Trader Joe pools. More info here.
YETI Staking: veYETI
$YETI can be staked to earn veYETI. The longer you stake, the more veYETI you accrue. When you unstake, you lose your veYETI. veYETI has three utilities:
(1) Boost yields on depositing in the stability pool
(2) Boost yields on providing liquidity for YUSD
(3) Reducing the protocol's cut of yield on deposited assets
(4) Governance down the line
What can I do with $YETI?
Users can stake YETI to earn YETI rewards and accrue veYETI. You can also use YETI to LP in the YETI/AVAX Pair on Trader Joe and earn farming rewards.
Partnerships + Grant Program
A portion of the Yeti Community Incentives/Foundation will go toward community efforts, including partnerships and down the line, a grant program. We want to incentivize partnerships and other products that would be useful for the Yeti Finance Protocol Ecosystem in general.