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.
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 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.
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 amount of TETU is sent back to the underlying vault or the distributed by the Profit Destination ratio.
Vaults that work in the standard strategy buyback TETU to distribute in the profit destination and auto compound the underlying vault in proportion to the current PS ratio.
Vaults that use the auto compounding strategies returns 90% or 99% of rewards from yield farming to auto compound the underlying vault and 10% or 1% of rewards are distributed by the Profit Destination ratio of 45% for xTETU, 45% for Protocol's Liquidity 10% USDC for investment fund.
Vaults that use the auto compounding strategies on Fantom return 90% of rewards from yield farming to auto compound the underlying vault and 10% of rewards are distributed again by a Profit Destination ratio specific to Fantom. Tetu on Fantom uses a different Profit Destination ratio, with 50% directed to Protocol Owned Liquidity and 50% directed to xTETU profit share.
Most vaults on Fantom distribute TETU incentives, these tokens are regular TETU and do not function as an interest bearing token. However it is possible to easily bridge TETU from Fantom to Polygon and deposit it in the Profit Share vault.
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.
The Profit Destination ratio divides the profit generated between Profit Share, Protocol Owned Liquidity and Investment Fund. This effectively gives Tetu DAO some control over the emission and buyback rates of TETU. The proposal TIP-003 Protocol Owned Liquidity resulted in the following allocations:
- 45% buyback TETU to distribute to xTETU holders.
- 45% buyback TETU-USDC LP to protocol owned liquidity.
- 10% USDC for Investment Fund.
The Profit Destination ratio is applied directly to Standard Vaults and is always applied in all fee cases, i.e. all Yield farming fees collected from the vaults are distributed according to the Profit Destination ratio.
Tetu on Fantom uses a different Profit Destination ratio, with 50% directed to Protocol Owned Liquidity and 50% directed to xTETU profit share.
A portion of the fees generated by TetuSwap 's 0.1% trading fee will also be directed to the profit share xTETU vault, as allocated by the Profit Share PS ratio. 10% of the fees generated is compounded to its underlying LP, with the remaining 90% divided further by the Profit Destination ratio after the distribution of the PS ratio. The Profit Share also receives part of the Performance Fees generated from all Tetu Yield Farming vaults. Fees received vary by vault.
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.
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 dxTETU holders.
Last modified 7mo ago