Yeti finance is an interest free decentralized borrowing protocol that allows users to borrow upto a 11x against their entire portfolio including LP toknes, staked assets and other yield bearing collateral. Loans are paid out in the protocols native stable coins $YUSD or the yeti dollar which redeemable at any time.
Stablecoins
When users borrow with Yeti Finance, they mint YUSD, a USD pegged stablecoin that is backed by deposited assets on Yeti at a minimum ratio of 1 YUSD to 1.1 USD in collateral. YUSD can be redeemed at 1:1 face value for the underlying collateral and has hard mechanisms to keep the price from going above $1.
Borrowers can use their borrowed YUSD to buy additional assets, hedge their position, or stake the YUSD in our stability pool for additional rewards.
Does yeti finance charges any fees ?
Borrowers pay fees on the loan as a percentage of amount drawn and redeemers pay resumption fee on the amount pay to users by the system.
What is Stability Pool ?
The protocol stability pool maintains the system solvency. It access the source of liquidity to repay depts from liquidation and ensures that the total $YUSD supply is always backed.
When liquidation occurres the corresponding amount of $YUSD to the dept of liquidation trove is burned from the stability pools balanced to repay the dept. And the entire collateral is looped to the stability pool.
The pool is funded by the stability providers depositing $YUSD. Over time they lose a pro- rata share of $YUSD deposits but gain a pro-rata share of the liquidated collateral.
Tokenomics
The protocols other native token is $YETI which is used to captured free revenue generated by the system and may become a governance token. Yeti is earned by depositing $YUSD into the stability pool and by providing liquidity.
Total supply :- 500M
Out of which 51% will be distributed as a rewards.
The protocols end token will have completely fair launch soon.
Final Thought
Yeti Finance has a much bigger long-term vision. With decentralized borrowing, Yeti Finance will become a “liquidity black hole” as users drop in their entire portfolio of LP tokens, staked assets, and base level ERC-20 tokens.
This will enable our long-term goal for Yeti Finance to become decentralized finance’s prime broker. A single protocol with access to a user’s entire portfolio will be able to offer the most optimal lending rates, netting services to minimize collateral requirements across financial instruments, and other products including flash loans and options (i.e. Theta Strategies).
This has the potential to turn Yeti into one of the largest protocols in DeFi.