Stablecoin Rebalancing

Earning YELD

To stake in yeld.finance, visit the dApp (once it’s released), connect your wallet and deposit your stablecoins to one or more pools. You can deposit DAI, Tether, TrueUSD, and USDC. Right after that, you will start generating yield in your stablecoins while earning YELD tokens at the same time.

The percentages displayed in the web app indicate what percentage of your yield is coming from the governance token and the total percentage including the stablecoin rebalancing system.

Stablecoin rebalancing system

When you deposit stablecoins using the web interface, the smart contracts move your balance around different DeFi protocols such as Aave, Compound, Fulcrum and others. Those protocols generate you more stablecoins from trading fees, borrow fees and governance token fees.

That way you're increasing your stablecoin balance automatically without spending time trying to figure out which protocol is the most profitable. Our smart contracts move the tokens to the right protocol constantly.

So if Compound generates you a 40% APY on your DAI holdings compared to the 20% APY on Aave (these are not real numbers), the YELD protocol will move your DAI holdings to Compound for the largest yield. This is required since protocols change their profitability all the time depending on many factors.

Smart Tokens

If you stake DAI, you will receive a Smart Token called yeldDAI representing your DAI stake in the pool. This Smart Token (yeldDAI in this example ) increases in value everyday to represent how many tokens you have (your original stake + Yield earned). You can withdraw your earning, and your original stake, anytime you want.

There's a separate Smart Token contract for every stablecoin.

Be sure NOT to trade or exchange the Smart Token to not lose your rewards. You will need it when you want to withdraw your stake from the YELD protocol.