Review Yeti Finance ($YETI) – Innovative Decentralized Borrowing Protocol on Avalanche
What Is Yeti Finance ($YETI)?
Yeti Finance is a cutting-edge decentralized borrowing protocol built on Avalanche that enables users to borrow up to 11x against base assets such as WETH, staked assets such as Liquid AVAX, and LP tokens – and 21x on yield-bearing stablecoins, all at a 0% interest rate. Yeti Finance supports borrowing against:
- Base level assets (WAVAX, WETH.e, WBTC.e, LINK.e, JOE)
- Staked assets e.g. sJOE
- Trader Joe and Curve LP tokens
- Deposited collateral on the Benqi, Aave, and Banker Joe lending markets.
- Yeti Finance is decentralized and completely non-custodial.
How Does It Work?
Borrowers deposit collateral in “troves” to mint Yeti’s native stablecoin, YUSD. YUSD uses a blend of hard-peg mechanisms, decentralization, and liquidity incentives to be liquid at $1.
After minting YUSD, it can be staked in Yeti Finance’s stability pool to earn YETI rewards or swapped for other stablecoins on Curve to purchase new crypto assets.
Staking YUSD in the Stability Pool
The Stability Pool is the first line of defense in maintaining system solvency. Users can stake their YUSD in the Stability Pool to help repay the debts of liquidated Troves that fall under the minimum 110% collateral ratio.
Over time Stability Providers lose a pro-rata share of their YUSD deposits, but are expected to make liquidation gains and receive early adopter rewards in form of YETI tokens.
Staking Curve LP Tokens
One way to get YETI tokens is by providing liquidity in the YUSD pool on Curve and staking the Curve LP tokens on the Yeti Finance platform. At launch, around 70% of YETI emissions will be going to the Curve pool which would be one of the best ways to earn YETI.
Users can stake YETI to start accruing veYETI over time, which can be used for boosted yields and reduced auto-compounding fees in the near future. YETI rewards for veYETI staking will also be rolling out soon.
To start staking for veYETI, all you need to do is deposit your YETI tokens to the veYETI contract.
Borrow against the entire portfolio
Rather than one individual debt position for each of your assets, users can borrow against all their assets at once allowing for better protection against liquidations.
Maximum Capital Efficiency
Yeti’s low minimum collateral ratios allow users to get up to 11x leverage on base assets, staked assets, and LP tokens – and 21x leverage on interest-bearing stablecoins.
0% Interest Rate
As a borrower, there’s no need to worry about constantly accruing debt.
- Token Name: Yeti Finance
- Ticker: YETI
- Blockchain: Avalanche
- Token Standard: ARC20
- Contract: 0x77777777777d4554c39223C354A05825b2E8Faa3
- Token Type: Ultility
- Total Supply: 500,000,000
No token sale is held
Token Release Schedule
The schedule is front-loaded to bootstrap the protocol, with a higher emissions rate initially, and then a constant emissions rate for the next four years after that of 5,000,000 YETI emitted per month. Token emissions will begin in April 2022. Though it is subject to change. The idea is that the first 3 months of the protocol will be a bootstrapping period with elevated emissions, and from then on we will be sticking with a sustainable emissions rate.
Token Use Case
$YETI is the Yeti Finance protocol token. In the future, $YETI will transition into a governance token. Users can stake YETI to earn more YETI while also accruing veYETI over time. Staking YETI for more YETI will end once veYETI utility is live. veYETI can be used for four things:
- Boosting $YETI rewards for stability pool staking
- Boosting $YETI rewards for liquidity providing for YUSD.
- Reducing the protocol’s cut of yield on deposited assets (YUSD rebates)
- Getting access to special strategies like Pandora’s box (aUST-Anchor).
RoboYeti (Co-Founder): He is chiefly responsible for protocols and sets Yeti Finance’s strategic vision. Before Yeti Finance, he was a crypto analyst and worked at a leading DeFi protocol on Ethereum. He studied Computer science and Math at a top U.S University.
0xTalent (Co-Founder): Yeti Finance is led by 0xTalent. He oversees the protocol’s vision, strategic partnerships, and community. Before Yeti Finance, he started many businesses and was the first product hire at fast-growing startups. He got into crypto in 2016 after attending a top U.S. business school.
0xTruco (Co-Founder): At Yeti Finance, he leads quantitative research on protocol revenue, risk parameters, and tokenomics. He studied Computer science and Biology at a top U.S. University.
Festive Yeti (Software Engineer): Festive Yeti does full-stack development and protocol design at Yeti Finance. Previously, Festive Yeti worked at Google doing machine learning and AI. He has been contributing to crypto projects since 2020. He studied Computer science at a top U.S University.
0xGoya (Software Engineer): He leads front-end development at Yeti Finance and helps the team with smart contract development. Previously, he worked at a popular NFT & blockchain entertainment firm as well as studied Computer science and Economics at a top U.S University.
Mebius (Quantitative Researcher): Mebius is responsible for all things bots and liquidations. He previously worked at a crypto quant trading firm and specializes in front-running and MEV. Mebius also works on smart contract engineering. He studied Computer science at a top U.S University.
0xAces (Security Researcher): Aces Yeti does smart contract development and helps ensure protocol security. He previously worked at a well-known crypto auditing firm and DeFi lending protocol. He studied Computer science at a top U.S University.
0xBroze (Growth and Community): 0xBroze specializes in growth and community at Yeti Finance. Previously, he worked for multiple startups and worked on growth at NEAR protocol. 0xBroze studied philosophy at a top U.S. University.
The Yeti Finance team has partnerships and integrations with other Avalanche protocols, such as Trader Joe, BENQI, Aave, Curve, and Colony Lab. It has also partnered with Three Sigma Labs, a world-class economic modeling and smart contract auditing firm.
Yeti Finance provides cross-margin, which is not available in most borrowing protocols. Yeti Finance users can borrow against their whole portfolio, and numerous assets can serve as collateral for loans, making borrowing on risky assets considerably safer. This decreases the risk of liquidation owing to asset volatility and sudden declines, enhancing liquidity.
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DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.