When users deposit QI into tetuQi vault, QI is locked into eQi for a maximum period of 4 years. All deposits will be locked for a maximum period of 4 years and after that period they will be locked again for a maximum period of 4 years, so technically all QI deposited on tetuQi are locked permanently.
As the minting of tetuQi tokens is performed at a ratio of 1:1 for each QI tokens deposited, there is a correlation of value between tetuQi and QI tokens, so if the price of tetuQi on TetuSwap is lower than the price of the QI the user who wants to get tetuQi can make the decision based on financial circumstances to buy tetuQi instead of depositing QI directly.
Following the same reasoning, if there is strong buying pressure of tetuQi tokens that moves the price above the QI price, users can choose to deposit QI in the vault. In this scenario users who have tetuQi tokens will be able to arbitrate the price by selling tetuQi by QI and depositing in the vault until the price approaches 1:1 again.
QI deposited in tetuQi is technically in permanent locking. Although it is impossible to withdraw from tetuQi vault directly there is still an alternative to withdraw QI from tetuQi which is to sell tetuQi on TetuSwap.
Although selling tetuQi is an alternative to withdraw the assets of the vault, the user will have to beware of slippage costs. Despite the slippage costs tetuQi LP provides a withdrawal alternative for users to receive the earnings and benefits of QI locked for 4 years and still retain the option to withdraw assets by selling tetuQi.
Like most Tetu vaults, there is a 10% performance fee that applies to the tetuQi strategy. In this case, the fee is deducted from 10% of the weekly QI airdrop that tetuQi's eQI position provides. 30% of the performance fee will be used to buyback TETU, which gets distributed back to the tetuQi vault as xTETU, with the remaining 70% split up by the Profit Destination ratio to 45% Profit Share, 45% to Protocol Owned Liquidity, and 10% to the Investment fund.
tetuQi is a product that represents positive points for both Tetu and QiDao, the advantages for QiDao is that tetuQi will lock more and more QI tokens permanently as more QI are deposited. And the advantage for Tetu is that the larger the deposits in tetuQi, the greater the Tetu's voting power in QiDao.
This voting power is used to increase the amount of QI rewards distributed to Tetu's Multi Strategies. This increases the APY obtained by users through these strategies.
xtetuQi is an auto compound vault. Users can deposit tetuQi into it and get rewards in auto compound through the interest bearing xtetuQi token. The characteristics of xtetuQi is that the rewards are smaller than tetuQi and there is no reward vesting period so users don't have to wait 28 days to claim rewards.
The biggest advantage of xtetuQi is to provide a place for tetuQi LP in TetuSwap to deposit tetuQi in a productive way, increasing its returns. Due to the TetuSwap structure that automatically deposits LP assets in Tetu vaults 50% of all assets in the tetuQi LP pool are auto compounding in xtetuQi.
- QI-tetuQi Dystopia strategy receives Penrose rewards and tetuQi rewards auto compounded in the pair.
- tetuQi's core strategy is currently generating Protocol Owned Liquidity on Dystopia with 5% of profits.