Profit Sharing Pool xTETU
TETU tokens are minted on a weekly basis, 70% of emission dedicated to yield farming will be wrapped to xTETU and distributed between all current vaults. Check emissions details in tokenomics.

Interest Bearing

xTETU is the Interest Bearing TETU token. Tetu rewards are already distributed to the vaults in xTETU tokens, this means that xTETU are already earning income through TETU buybacks even if they are not claimed from the vaults. Interest bearing mechanics provide users with income through the constant share price increase in TETU of the interest bearing token, in this way the xTETU token will be worth more and more TETU over time.

Emissions

Emissions rate to Profit Share can be from 0% ~ 100% this ratio split rewards into two directions - PS pool and liquidity provider vault. In general, the Profit Share does not receive incentives from emissions, if this occurred it would be an exception. So the emission rate split between Profit Share and Liquidity Provider Vaults generally are 100% in favor of Liquidity Provider Vaults.

PS ratio

As in the case of emissions there is also a split rate between 0% ~ 100% of yield farming rewards collected in the strategies that will be used to auto compound the underlying or buyback TETU on the market. Overall the rate is 100% in favor of buying TETU on the market. Thus Tetu works in such a way that all assets collected through Yield Farming are used to buyback TETU on the market and distribute it to xTETU holders, creating a Yield Farming mechanic that provides more stability to the Yield Farming of volatile assets and higher returns to the Yield Farming of stable assets. TETU bought back on the market are distributed to xTETU holders by increasing the TETU per share value of xTETU, this way the xTETU holder does not receive TETU separately, but receives it by the constant increment of the value of xTETU in relation to TETU.
The PS ratio determines what will be the distribution of all TETU repurchased between the underlying vault and the standard distribution of xTETU, Protocol's liquidity and investment fund.

Standard

Vaults that work in the standard strategy buyback TETU to distribute in the standard flow and auto compound the underlying vault in proportion to the current PS ratio.

Auto compound on Polygon

Vaults that work in the auto compound strategy uses 99% of rewards from yield farming to auto compound the underlying vault and 1% of rewards are distributed at the standard rate of 45% for xTETU, 45% for Protocol's Liquidity 10% USDC for investment fund.
Generally, vaults with a low TETU buyback performance are switched to the Auto compound strategy so that they are still available for yield farming on Tetu.

Auto compound on Fantom

Single assets vaults in Fantom use 90% of rewards from yield farming to auto compound the underlying vault and 10% of rewards are distributed in the standard flow. The auto compound fees are adjusted to the HardWorks costs of each network. LP auto compound vaults operate with 99% auto compound and 1% fees for standard flow.

Buy Pressure

TETU buyback from the market is made regularly, and the time of buyback is determined randomly in order to avoid front running or weaknesses that allow exploits in this process. Due to a 100% buyback rate the TETU buy pressure can eventually become insane. As the TETU buyback is done using Yield Farming rewards from LP vaults, the most reliable source for projecting the amount of TETU buyback in the future is TVL at work. The high buyback rate of the TETU token plus its supply limit of 1 Billion TETU Tokens is expected to create an atmosphere of cyclical TETU scarcity in the market.

TETU Buybacks

Both the emission rate and the buyback rate directed to xTETU can be adjusted through proposals and vote. During the DAO voting of the Liquidity Solution the xTETU buyback was adjusted as follows:
  • 45% buyback TETU to distribute to xTETU holders.
  • 45% buyback TETU-USDC LP to increase protocol liquidity.
  • 10% USDC for Investment Fund.
The performance of TETU buybacks can be checked on the Stats page.
Vaults Stats Strategies earned TETU: This is the total TETU bought back from the market. It is a good indicator of the Tetu protocol productivity.
Fund Keeper USDC Balance: This is the amount of USDC available in the investment fund.
Fund Keeper LP Balance: This is the Liquidity Owned by Tetu protocol.

Investment Fund

10% of assets collected by Yield Farming from all vaults go to the Investment Fund. Assets earmarked for the Investment Fund will be used to make investments either in platforms and Defi dApps or investments in the real world if possible. Profits earned from the Investment Fund will be regularly distributed to xTETU holders.

Where to trade TETU

TETU is available for trading on QuickSwap on the pair TETU-USDC and on Sushiswap on the pair MATIC-TETU both on the Polygon network. You will get better prices in TETU trading if you use 1inch as through 1inch your order will be aggregated according to the best available liquidity.

Resources

An instructional video about xTETU, dxTETU and Vault Shares.
Last modified 9d ago