Yeti Finance is a cross-margin lending protocol on Avalanche. With Yeti Finance, users may borrow up to 21x against their portfolio of LP tokens, staked assets like sAVAX and sJOE, and yield-bearing stablecoins in a single loan position.
Farming and staking incentives are automatically compounded when staked assets or LP tokens are transferred onto the Yeti Finance platform. This enables a variety of leveraged farming techniques.
The stablecoin YUSD that borrowers receive is overcollateralized and may be exchanged for new assets or redeposited into Yeti Finance to increase their leverage. YUSD is redeemable for $1 of the underlying collateral, less redemption costs. Yeti Finance draws on Liquity’s economic framework to guarantee peg stability and effective liquidations.
Yeti Finance is a quantum leap ahead in the stablecoin/lending ecosystem.
Using Yeti Finance
Borrowing from Yeti Finance
Users may borrow against their portfolio of assets with a single loan through Yeti Finance. To get started, deposit tokens onto the Yeti Finance platform and borrow YUSD. It is an overcollateralized hard-pegged stablecoin. Depositors maintain their staking and farming rewards on yield-producing assets and may borrow YUSD to stake, offer liquidity, or leverage up to 11x.
Staking YUSD in the Stability Pool
The Stability Pool is the first line of defense in keeping the system operational. Users can invest their YUSD in the Stability Pool to assist in covering the debts of liquidated Troves that fall below the required collateral ratio of 110%.
Stability Providers lose a pro-rata percentage of their YUSD deposits over time. However, they can make liquidation profits and get early adopter awards in the form of YETI tokens.
Staking Curve LP Tokens
One way to obtain YETI tokens is to stake Curve LP tokens on the Yeti Finance platform and provide liquidity in the Curve YUSD pool. At launch, approximately 70% of YETI emissions will be directed to the Curve pool, making it one of the best ways to earn YETI.
What is YETI and veYETI?
YETI is the protocol token for Yeti Finance. $YETI will eventually be converted into a governance token.
Users can stake YETI to start accruing veYETI over time. The tokens can be used for reduced auto-compounding fees and boosted yields soon. YETI rewards for veYETI staking will be available soon.
To begin staking for veYETI, simply deposit your YETI tokens into the veYETI contract.
Staking YETI for veYETI
The quantity of YETI you wish to stake plus the amount already placed in the veYETI contract makes up the new staked amount.
The revised quantity of veYETI you should accumulate each week is known as the New veYETI Accumulation Rate.
The Deposit Confirm modal will appear when you click Deposit. Confirm the transaction by clicking Deposit in the Confirm Deposit window.
The Total Amount Staked, Current veYETI, and Hourly veYETI Accumulated are all displayed in the Your Balance area.
Total Amount Staked – The total number of YETI staked in the veYETI contract.
Hourly veYETI Accumulation – The quantity of veYETI you will earn per hour over time. This is determined by the amount of YETI you’ve staked.
Current veYETI – The quantity of veYETI you have already acquired in total.
Withdrawing your YETI
If you wish to withdraw your YETI tokens, go to the Stake area and click the Withdraw button. After determining the quantity of YETI tokens to unstake, type that number and press Unstake.
When the Unstake Confirmation modal appears, click Unstake to withdraw your YETI. Your New Total Staked YETI should now be lower, and you should have successfully unstaked your YETI.
The Dashboard displays a quick overview of the Pool, Borrow, and Stake Tabs.
Your Collateralization Ratio, Total Collateral, and Borrowed YUSD are all highlighted in the Borrow Summary. It also displays the System Collateral Ratio.
The Pool Summary indicates how much YUSD you have in the Stability Pool and how much YUSD you have in your wallet.
The Stake Summary displays the amount of veYETI you’ve earned. To discover how to stake Yeti, visit Staking Yeti, and Tokenomics to learn about veYETI application cases.
How to get YETI / YUSD
Borrow YUSD through Yeti Finance
One method of obtaining YUSD is establishing a trove and borrow YUSD against your collateral.
Swapping for YUSD
YUSD may also be obtained through trading on DEXs such as Trader Joe’s and Curve. For rapid and efficient exchanging, use Curve’s YUSD pool and Trader Joe’s YUSD-AVAX pool at launch. Because of the highly profitable benefits for liquidity suppliers, these pools will have deep liquidity over time.
Yeti Finance will hold an incentivized farming launch and encourage customers to contribute liquidity to earn YETI. YETI payouts will be significantly rewarded for providing liquidity and staking YUSD.
To summarize, YETI is acquired in four ways at launch:
Putting YUSD in the Stability Pool.
Trader Joe will provide liquidity for the YUSD: AVAX pool.
Trader Joe will provide liquidity for the YETI: AVAX pool.
The curve will provide liquidity for the YUSD.
Single-sided YETI staking for more YETI will also be available shortly after the introduction.
Swapping for YETI
Another simple way to receive YETI is to go to Trader Joe’s and exchange AVAX for YETI utilizing Trader Joe’s YETI-AVAX pool.
Yeti Finance will additionally seed the YETI-AVAX pool upon launch to ensure pricing stability.
What is the dispersion of YETI?
- 50% Community Incentives: Grant programs, genesis liquidity providers, long-term liquidity providers, and incentives for mining liquidity.
- 25% for the Present and Future Team: This allocation has a three-year linear vesting plan with a three-month lock. This sum will be distributed among an eight-person core team, non-core contributors, and potential future team members.
- 15% Foundation: Investment costs, financial safety, smart contract auditing, service providers (lawyers), running costs, and collaborations.
- 1.17% Strategic Partners: Since its inception, Yeti Finance has received financial and non-financial assistance from the Avalanche Foundation, Trader Joe, Genesis Block Ventures, and the creators of BENQI (Hansen, JD, and Dan). Strategic partners will continue to guide the protocol’s development and have the exact vesting timetable as the team.
- 8.83% for Future Strategic Partners: This funding is reserved in the event that bringing on new strategic partners is in everyone’s best interests. There will be a vesting timetable for all potential partners. This 9% will be split between the Foundation and Community Incentives pool if it is not used.
Should You Buy Yeti Finance Tokens (YETI)?
YETI is the project’s governance token; however, this is in the future. Currently, the governance and voting capabilities are still in the works. YETI may be used to contribute liquidity to Trader Joe pools or stake and get veYETI, which can then be utilized for the following purposes:
- Increased compensation for YUSD liquidity suppliers.
- The stability Pool bonus has been enhanced.
- Auto-compounding costs have been reduced.
- Unique tactics are available.
Similarly to vePTP and veJOE, if you unstake YETI, you will lose all of your veYETI. There may also be parties racing to collect veYETI to launch YETI Wars.
Yeti Finance is a decentralized finance (DeFi) platform that allows users to earn yield by providing liquidity to various pools. As with any investment, individuals must conduct their research and due diligence before getting involved with Yeti Finance or any other DeFi platform.