Tetu is a Polygon-based, web3 asset management protocol employing automated yield farming strategies. Its primary mission is to foster a self-sustaining yield management ecosystem that delivers consistent, competitive returns. Tetu operates under three core principles:

Revenue Tokenization

Every veTETU token represents a share in the protocol's profits. This is not tied to the market price but rather to the protocol's revenue-generating capacity.

Income Generation

Tetu's structure naturally facilitates an accumulation effect for veTETU holders. The tokenomics induce scarcity over time, positioning the APR of veTETU as a steady income closely tied to Tetu's earnings capabilities.

Yield Value

The TETU token's value is intrinsically linked to its income generation ability. The income sources for veTETU dynamically adjust in response to market trends, capitalizing on the most advantageous farming opportunities.

In addition to these core principles, Tetu prioritizes constant adaptation and innovation. Tetu's team continually refines its strategies in response to market dynamics, ensuring cutting-edge yield farming optimization.

Furthermore, Tetu values its community, encouraging active participation and feedback to shape the protocol's future. Tetu nurtures a forward-thinking community that recognizes the transformative potential of decentralized finance and welcomes everyone who shares this vision.

Useful links to help you connect and access Tetu community.

• Email: admin@tetu.io

About Tetu

Founded in August 2021, Tetu is an advanced Web3 protocol that offers pioneering solutions for decentralized asset management. The core values of Tetu include the steadfast pursuit of optimal yield generation and a robust commitment to community-led governance.

Yield Optimizer

Tetu leverages smart contract technology to redefine the strategies employed in yield farming. This is achieved by integrating algorithms that are both efficient and sophisticated, based in delta-neutral and automated solutions. These strategies are designed to exceed the returns typically achievable through manual asset management. Tetu's primary objective is to consistently adapt to market dynamics in order to optimize yield and ensure profitability.

Community Governance

Tetu embodies the principles of decentralization through a strong community governance mechanism. This is operationalized through veTETU tokens, the ownership of which grants voting power to users. This grants them influence over platform attributes and the distribution of rewards. Tetu's governance assets, such as veTETU and tetuBAL, reflect the economic interests of the community, positioning each holder as a crucial participant in shaping the future direction of Tetu.

The first step in implementing our vision is to launch Tetu’s yield farming platform to generate stable cash flow for investors.

Smart Vault

Vaults and Pools are merged into one contract - the Smart Vault. Now you have one place where you store all your money, and are free to use interest-bearing xVault tokens as collateral. This dramatically increases the composability of the asset while minimizing the number of interactions our investors have to make in order to benefit from the full compounding effect of their farms.

Investment Fund

The Investment Fund serves to allocate resources towards investments, with an aim to create a sustained flow of financial returns. Prior to the implementation of Tetu v2, a fixed percentage, specifically 10%, of all rewards were directed towards the Investment Fund. However, with the introduction of Tetu v2, this ratio is now determined through veTETU voting on platform attributes.

Multichain

Bridge your Tetu on Multichain. You can read an instructional article teaching how to bridge Tetu using Multichain

DeBank

Track your investments in Tetu on DeBank

1inch

Trade TETU at 1inch by getting aggregated orders providing a better price due to less slippage

OpenOcean

Use OpenOcean to get better prices and less slippage with liquidity aggregation.

Strategy Description

On Tetu's website, users can find a detailed description of each strategy used by the protocol. This information is available by hovering over the APY signals on the website. The strategy description provides a clear explanation of how the strategy works, any fees that may be charged, and a detailed breakdown of the APR. This information is crucial for users to understand the risks and potential rewards of investing in Tetu's strategies. We recommend that users take the time to read the strategy descriptions carefully before making any investment decisions.

Single Asset Autocompound

These vaults use Tetu's single asset Tetu Farm vaults to generate yield, but continuously compound all claimable rewards from the Reward Boosting System into the underlying asset. This strategy requires little maintenance from the user at the cost of the early withdraw penalty and lack of TETU rewards.

With the cost of less yield, you gain the convenience of having all rewards directed into the underlying deposited asset, requiring no maintenance of the position other than depositing and withdrawing, which also provides a more composable solution for future integrations.

Multi Strategies is the concept of yield farming using multiple protocols. The goal of Multi Strategies is to provide a good auto compound return on single assets without impermanent loss risk through the automated integration of multiple yield farming solutions.

Multi Strategy works as a slightly leveraged and automated yield farming strategy. Technically, Multi Strategies can be liquidated if the price of the underlying asset drops by approximately 60% in a few blocks.

Multi Strategy manages the assets automatically so that when there is a price drop, it repays part of the loan on QiDao, increasing the collateral to debt ratio. Due to the rare condition of price drops close to 60% in a few blocks and the systematic repayment of loans on QiDao as the price drops, the risk of asset liquidation in Multi Strategy is close to zero.

AMB v2

AMB v2 has four steps:

• AAVE - deposit underlying token in AAVE to receive amToken

• QiDao - deposit amToken in the yield part of QiDao to create camToken

• MaiStablecoin - create a vault on QiDao for the camToken and borrow MAI token

• BalVault - deposit MAI token in the Balancer pool

Deposit Fee

AMB v2 has a 0.3% deposit fee to cover MAI repayment commission and Balancer swap fees.

Rewards

Rewards on QiDao and Balancer are claimed on a weekly basis. AMB v2 also receives rewards from TETU emissions, these rewards are approximately 10% of the buyback of the strategies.

Auto compound

The Multi Strategy structure causes share price fluctuations that affect the amount of deposited assets. Multi Strategy earnings are auto compounded, this makes the share price trend to grow over time. This way the Multi Strategy shares will look like an interest bearing token.

TVL capability

Multi Strategy's APR does not drop if the TVL in the vault increases too much as it usually does with regular yield farming vaults. This happens because incentives from Balancer and QiDao are high and Multi Strategy auto compound the earnings. This scenario gives Multi Strategy a high capability of TVL in its vaults.

Limitations

If there is not enough MAI liquidity on QiDao it will not be possible to deposit in the Multi Strategy. The maximum possible deposit is displayed on the vault page. If the MAI price is too high, the withdrawal transaction may be reverted and it would be better to wait a while.

Resources

Multi Strategy v2 on Medium

AMB on Medium

YJN58's article is very instructive about Multi Strategy. (Credits to YJN58)

The most classic design of Yield Farming. If some strategy provides claimable rewards for a token, Tetu developers can create a strategy for automating this process.

When depositing in the vaults, the strategies will claim the rewards and sell them for the underlying tokens. This process will increase the underlying assets of each user participating in the vault over time, this is called autocompound.

There are vaults that work according to PS ratio. The PS ratio determines the rate of rewards that will be distributed between the auto compound of the underlying vault and the then divided by the Profit Destination ratio to xTETU Profit Share, Protocol Owned Liquidity, and the Investment fund.

The PS ratio has been in existence since the inception of Tetu, the purpose of the PS ratio is to keep yield farming vaults attractive and it is adjusted through DAO voting. The dxTETU holders decide whether it is changed.

Tetu is focused on providing innovative DeFi solutions to bring greater efficiency and convenience to users. The development focus is on creating new products that can be used by new users making DeFi accessible to the general public.

Some Tetu products go further and create an impression of greater complexity and sophistication for the unaccustomed user. However, the time required for learning is not high, and when using Tetu, users realize that it is quite simple. Read a summary of Tetu's main products below:

veTETU

veTETU is the governance token of Tetu and is used to participate in governance votings. Holders of veTETU are able to vote on platform attributes and gauge reflection votes collecting bribes. Additionally, veTETU earns a share of Tetu's profits.

Single Assets and LP

Tetu offers opportunities categorized primarily into single asset vaults and LP vaults. Single asset vaults leverage the advanced Strategy Splitter mechanism, automatically allocating deposited assets across multiple strategies based on their current profitability, thereby optimizing yield generation without exposing users to the risk of impermanent loss. On the other hand, LP vaults typically offer higher yield farming returns, though with an associated risk of impermanent loss.

Strategy Splitter

Strategy Splitter is a product developed by Tetu that automatically allocates single assets deposited in the vault into different strategies based on their current profitability. This process allows for the optimization of asset allocation and maximization of profits for users. The amount of assets dedicated to each strategy is dynamically adjusted based on its current earnings. In case of changes in the environment of earnings, the Strategy Splitter may reduce or increase the allocation of assets in a given strategy to ensure optimal performance.

Delta-neutral strategies

Delta-neutral strategies, integral to Tetu's investment practices, aim to balance a portfolio's exposure to changes in the prices of underlying assets. This effectively mitigates potential losses amidst market volatility, thus stabilizing returns. Employing these sophisticated delta-neutral strategies underlines Tetu's innovative approach to yield optimization, managing risk while providing a secure and consistent investment experience.

tetuBAL

tetuBAL is one of Tetu’s liquidity staking products. It is integrated with the Balancer platform, a decentralized automated market maker built on the Ethereum chain. tetuBAL exposes holders to the benefits of staking veBAL, Balancer’s governance token. With tetuBAL, users do not need to stick to a 50:50 ratio when providing liquidity. The tetuBAL token automatically balances liquidity provided in the right proportion. tetuBAL gives users access to the smart pool while providing exit liquidity. The benefits of staking holding tetuBAL include governance rights, low transaction fees, and optimum veTETU yields.

Tetu's tetuBAL strategy is a unique liquid staking product that leverages cross-chain operability to allow users to easily farm the benefits of the veBAL strategy on the Ethereum mainnet from the simplicity of the Polygon network. In order to participate in tetuBAL, users need to lock BAL-ETH LP tokens permanently.

The power provided by veBAL locked in Tetu is exercised through gauge reflection votes, and both tetuBAL and veTETU participate in the gauge votings to allocate the available veBAL power held by Tetu. The allocation of veBAL power is determined by the votes.

It is a unique strategy based on MultiStrategy solution.

MultiStrategy contains "pipes" inside - parts of strategy specially deployed for specific platform.

This strategy has 4 pipes:

• AAVE - deposit underlying token in AAVE to receive amToken

• QiDao - deposit amToken in the yield part of QiDao to create camToken

• MaiStablecoin - create a vault on QiDao for the camToken and borrow MAI token

• BalVault - deposit MAI token in the Balancer pool

After the launch users experienced a problem with calculating the long-term profitability of this strategy.

Let's describe all components that will bring you a profit and try to estimate the income.

Autocompound part

When users deposit tokens in AMB Multi Strategy they will receive a share token TETU_MULTI_xxx which represents the amount deposited at the current time.

Vault has a share price that depends only on 1 strict attribute - how much underlying token the vault can get after the full withdraw from all pipes.

This process is simulated within the strategy every time when an user deposits/withdraws or when pipes are rebalanced. This process includes "revert action" and Polygonscan detect it as a warning event. Don't worry, it's ok and it's just an implementation specific trick.

At the time of depositing in AMB Multi Strategy, there is a 0.3% fee on the total deposit to cover the repayment commission of the MAI and Swap fee on Balancer, so the user will receive the share tokens minus 0.3%. When depositing in the vault the assets will be immediately deposited in the AMB Multi Strategy and the MAI swap and repayment fees will already be counted.

However, it is not possible to calculate the exact amount of fees because the vault does not read the strategy's logic and only understands how many underlying assets are under control.

0.3% deposit fee is a maximum repaying fee at the moment of deposit. It can be lower, and the gap will go to vaults users as a "synthetic income".

It can lead to dramatically increasing share price in the momentum.

In general this can be interpreted as operating costs being reduced as less than 0.3% of fees are charged and the amount saved is provided directly to Multi Strategy users.

Next good question - What factors can influence the amount to be withdrawn and the share price? Can the share price change?

Positive flow:

The camToken has autocompounding nature and periodically its value increases on the QiDAO platform. We don't touch this process, you will have full income from AAVE supply + AAVE rewards. 3-5% APR

Balancer trading fees for borrowed MAI deposited in the pool (we use ~50% of the underlying cost). 1-2% APR

This amount will be used a little bit to cover MAI price fluctuation until enough money is accumulated.

Negative flow:

1) Additional repay

In the scenario in which the price of the underlying asset falls by more than 50%, the borrowed MAI will be partially repaid.

This is a very rare scenario and the strategy has a big gap that sets it up for huge market fluctuations.

2) Underlying price increasing

When the price of the underlying asset increases, Multi strategy will borrow more, in which case more swap and repay fees will be charged. This happens only when the price of the underlying asset reaches a new level. The repayment fee will be counted and the share price will drop a little.

It should be around usdValueOfAssetChange / 2 * 0.05. If ETH pump in price to 10% the share price will be changed ~0.0025%

3) MAI price increasing

The Multi strategy borrow MAI and provide it to the Balancer pool. If the price of MAI increases, the strategy will withdraw a little less of MAI.

It will be covered with time by the buffer that we will have from trading fees. But until this buffer doesn't cover the possible gap the result of full withdraw will be a bit lower. It will lead to the share price decreasing in a period when the MAI price is higher than the value when the most underlying was deposited.

The longer the strategy works the less volatile this process will be.

Let's say $1000 is deposited in the AMB Multi strategy, 500 MAI is borrowed. The MAI is provided to the Balancer, after that the MAI price increases to $1.1, the strategy will only be able to withdraw 450 MAI. With this amount the strategy will be able to pay only $900

But there will still be $100 of collateral, it's like an impermanent loss.

Claimable rewards part

Every week QiDAO and Balancer disperse rewards for depositors.

Tetu users always have TETU token rewards instead of them.

With the current rate (30%) Tetu users will have 30% of this distribution.

Another part of rewards is covered with TETU tokens distributed every day based on vault performance. Usually, it is much higher than you will be able to receive without Tetu platform.

Possible issues and limitations

You will not be able to deposit to the vault if QiDAO doesn't have enough MAI liquidity.

In some rare cases when the strategy wants to borrow more, you will be unable to deposit more than the deposited amount + strategy borrowing amount.

The strategy has a limitation - If you are going to withdraw an amount that is less than 0.1% of the acquired amount the transaction will be reverted. Usually, this means that the price of MAI is too high and it's better to wait a bit. However, we may perform a manual rebalancing if the MAI price remains high.

Liquidation

The liquidation price is variable and when AAVE gets close to it the strategy will rebalance the assets by withdrawing from the Balancer and repaying QiDao to increase the collateral to debt ratio. So the user will never be liquidated. Although liquidation is technically possible the chances of liquidation are close to 0%.

Tetu's governance is primarily driven by . As the governance token, veTETU holders have the power to shape the future of Tetu by voting on governance proposals. The voting power of veTETU is directly proportional to the amount of veTETU held by a user, and the locking of veTETU in the Tetu ecosystem can also provide additional benefits.

The voting process is straightforward and transparent. veTETU holders can cast their vote by connecting to the and selecting their preferred option. The weight of each vote is proportional to the amount of veTETU held by the user.

Overall, the governance system of Tetu is designed to be decentralized and community-driven. By giving veTETU holders the power to make decisions, Tetu can be guided in a direction that is aligned with the interests of the community.

Discussions on are an important part of the Tetu governance process. Through these discussions, members of the community can engage in constructive dialogue and share their ideas for how to improve the protocol. This helps to shape the development of Tetu improvement proposals, which can then be voted on through the governance system.

Features of tetuBAL

• Permanent Locking

• Governance rights and increased value for veTETU

• Balancer revenue earnings, swap fees and liquidity mining rewards

• Max boost for locking veBAL for the maximum period

• Exit Liquidity

• Low costs

tetuBAL contract

veBAL

veBAL is Balancer's governance product. Through veBAL, users can lock their 80/20 BAL-WETH liquidity pool tokens to boost the rewards of deposited assets, obtain voting rights, and receive a portion of Balancer's revenue.

tetuBAL

tetuBAL is the liquid market product offered by Tetu for the Balancer platform. This strategy marks the beginning of Tetu's innovative interaction between multiple blockchains; utilizing the Ethereum network from the convenience of the Polygon network to provide minimal fees and a seamless experience for users.

Through tetuBAL, users will be able to obtain most of the benefits provided by locking veBAL for the maximum period, such as increased revenue share from Balancer, and a higher multiplier on gauge weight voting for BAL emissions, all while having the option to enter or exit the position as you please on the polygon network.

To enter the tetuBAL vault users must deposit both BAL and WETH on Balancer Pool on Polygon to get the B-80BAL-20WETH BPT token, and then deposit the BPT token into the Tetu vault for tetuBAL.

Locking

tetuBAL locks 80/20 BAL-WETH LP in veBAL for a maximum period of 1 year. At the end of the locking period, the assets are locked for a maximum period of 1 year again so that all assets deposited in tetuBAL are practically locked forever. So, despite the exit liquidity option provided to users, tetuBAL provides permanent liquidity deposited in the Balancer protocol.

Governance and veTETU synergy

the voting power is provided as follows:

• BPT no voting power

• 1 tetuBAL 100% voting power

• 1 veTETU power by the formula (tetuBAL balance in BPT) / (veTETU total supply) veTETU power has a cut of 20% for tetuBAL buybacks

Relevant Events:

TIP-016

TIP-018

The process is now simplified as follows:

• All bribes from the markets will now be distributed exclusively to xtetuBAL holders.

• The performance fee for xtetuBAL has been reduced from 15% to 5%.

• veTETU is now counted as power deposited to xtetuBAL. As such, veTETU holders will receive bribes without needing to vote.

These adjustments aim to make the distribution process more efficient and less resource-intensive.

Gauge reflection proposals

Participants in the proposal will eligible for rewards from:

Eligibility to voting

The methodology for selecting the block for reflection snapshot ensures a reasonable degree of randomness in determining whether a user who locks veTETU will be immediately eligible to vote or must wait for a period, which will not exceed two weeks; however, after two weeks, voting eligibility is guaranteed.

veBAL Rewards

Tetu will claim veBAL rewards weekly on Balancer and users will receive veBAL rewards in wrapped tetuBAL and TETU. All veBAL rewards comes from Balancer revenue earnings, swap fees and liquidity mining rewards.

tetuBAL liquidity

Balancer's governance structure

BAL token holders have the option to stake their tokens into veBAL for a chosen period of time in order to receive more voting power for the gauge weight voting, and to increase revenue and rewards they receive from Balancer. The benefits received scale with the duration of the lock, ranging from minimum boosts with a two week lock, to maximum boosts with a one year locking period.

veBAL holders have the power of directing weekly gauge emissions to specific Balancer pools. 90% of the weekly rewards are directed by veBAL gauge weight voting, with the remaining 10% being strategically allocated for partnerships by the Liquidity Mining committee.

BAL token emissions are now distributed into the ecosystem with new allocations; veBAL holders are allocated 10% of BAL rewards, proportional to the percentage staked out of the entire veBAL balance staked. 56% of BAL rewards are reserved for Ethereum mainnet pools, while Polygon pools and Arbitrum pools receive 17% and 7%, respectively. All gauge weights for Ethereum, Polygon, and Arbitrum pools are voted for by veBAL holders on Ethereum.

Users can still earn some liquidity mining incentives and swap fees from Polygon and Arbitrum, but they are unable to receive the boosted liquidity mining rewards and 75% of the protocol earned fees that veBAL holders are entitled to on Ethereum. This is where Tetu steps in, providing to all users, regardless of chain, the benefit from the boosted liquidity mining rewards and protocol earned fees.

tetuBAL Multi Sig

There is a dedicated contract on the Ethereum network, BalLocker, this contract has the unique role of voter. Only the voter can be used to vote on gauges and participate in snapshot proposals.

Gnosis Safe: 0x84169ea605619C16cc1e414AaD54C95ee1a5dA12

Resources

xtetuBAL

xtetuBAL is a strategy developed by Tetu that automatically allocates voting power into the most effective gauges in order to maximize earnings in bribes. This strategy is based on tetuBAL and is designed to provide high yields for tetuBAL holders.

Features

• Automated allocation of voting power into the most effective gauges to maximize earnings in bribes

• 5% of earnings in xtetuBAL is used to build tetuBAL Protocol Owned Liquidity

• Profits from bribes are airdropped as USDC or xtetuBAL to participants of xtetuBAL.

• veTETU is considered as power deposited into xtetuBAL. Only xtetuBAL and veTETU holders will receive distributions of all bribes from the markets.

Calculation of APR

The APR of xtetuBAL can be calculated by dividing the total amount of bribes by the TVL in the strategy. This calculation provides an estimate of the percentage return that can be expected from staking funds in xtetuBAL. The APR shown on the UI comes from the previous bribe round.

Airdrop

By default, bribes are distributed as a USDC airdrop, but you have the option to switch and receive bribes in xtetuBAL as your preferred asset or continue receiving them in USDC.

xtetuBAL and tetuBAL overview

Conclusion

Some governance proposals were made in the past with the aim of improving the development of the Tetu protocol. As the protocol grows and new demands emerge, more governance proposals are expected to be put to a vote by the community.

TIP-018: Streamlining tetuBAL Bribes Distribution

In light of the complexities and elevated gas usage associated with distributing bribes from all markets individually, a simplification is proposed:

• Market bribes will solely be allocated to xtetuBAL holders.

• The performance fee for xtetuBAL will be decreased from 15% to 5%.

• veTETU is expected to be considered as power deposited to xtetuBAL, allowing veTETU holders to receive bribes without any voting necessity.

veTETU power proposal

TIP-017: tetuBAL Buyback via BAL Reserves

This proposal recommends deploying BAL from veBAL rewards (approximately $30,000 at present) for buyback purposes. An automated trading bot will execute these buybacks and amass tetuBAL's POL. Off-chain scripts will oversee the process, mitigating potential front running and insider trading risks.

tetuBAL buyback proposal

TIP-016: Flexibility in veTETU Voting Power and tetuBALPower Contract (Ranked)

This proposal suggests curtailing veTETU power by X% and delegating it to a specified address. This address will utilize voting power to amass bribes, used for tetuBAL buyback. A portion of tetuBAL will fuel the tetuBAL/WETH-BAL vault, with the rest kept in POL (Polygon scan link). The reward-to-POL ratio will initially be 100%, pending future proposals. No user action is necessary as processes are automated.

veTETU voting power proposal

TIP-014 - Deposit veTETU BPTs into Gauge

Introduction: We address the dilution issue from using POL (~400k) as BAL farm bribes in our community discussions.

Proposal: The veTETU contract will be upgraded to deposit the underlying BPT into an existing vault 0x6922201f0d25Aba8368e7806642625879B35aB84. Vault mechanics remain unchanged, with rewards split for bribes and tetuBAL purchasing (currently 90% bribes, 10% tetuBAL buying).

Newly generated bribes will vote for the TETU-USDC pool. Surplus bribes will be held in reserve for future use.

BPT proposal

TIP-013 - Adjustments to tetuQi Voting and Yield

This proposal aims to:

1. Direct 100% eQi emissions to tetuQi-Qi Balancer pool.

2. Retain eQi voting authority for tetuQi outside the pool.

3. Nullify voting rights for tetuQi inside the pool.

4. Grant dxTetu voting authority over in-pool tetuQi.

5. Randomize reflection vote snapshots.

The intent is to enhance flexibility and emulate tetuBAL's successful model.

tetuQi proposal

TIP-012 - Migrate POL to Balancer 80TETU/20USDC Pool

This proposal is focused on migrating Protocol Owned Liquidity to an 80/20 TETU-USDC Balancer Pool to improve swap experiences and reduce price impact. With 63.91% of the total LP as POL, including 86,106 USDC and 5,51,1193 TETU, the migration requires an additional 17M TETU from undistributed rewards on the Polygon chain to align with the pool's 80/20 weightage, causing an increase in TETU's market supply. The proposal aims to ensure better swapping experiences, minimize price impact, and potentially allow BAL emissions farming by the POL.

Protocol Owned Liquidity migration

TIP-011 - Deposit Investment Fund Stables into USDC vault

This proposal intends to maximize returns on the idle USDC in the investment fund by depositing it into the Tetu USDC vault. This decision aims to generate additional returns without sacrificing long-term financial flexibility.

Investment fund assets

TIP-010 PS Ratio change to 10% and disable POL accumulating

This proposal aims to optimize vault profits by redirecting most buybacks to vaults and changing the PS ratio to 90%. This change would lower xTETU APR, but halting POL accumulation would offset this. The objective is to maintain a high APR without requiring extensive contract modifications, while preparing for V2 emissions.

PS ratio adjustment

TIP-009 Reward boost initial percent

This proposal made all rewards accessible to users on an earlier time-frame and also increased profit margins on Tetu's auto-compounding strategies.

The initial calibration of the Reward boost system dictated that 30% of the rewards are immediately accessible, with the remaining 70% unlocking over the next 28 days in a linear fashion. TIP-009 changed the percentages to being 70% immediately accessible, and 30% claimable over time.

Tetu's reward boost system, TIP-001, is in place to prevent the immediate selling of rewards that Tetu provides. It forces you to forfeit a percentage of your rewards if you claim them before your 28 day timer is complete.

This mechanic is a way to prevent TETU depreciation and promote holding the token for long terms, but over time conditions change and the emission curve slows down; providing the option to increase the flow of TETU emissions to users. An additional reason these changes were proposed was that the reward boost system limits the margins that the auto-compounding vaults provide, as they are always going to be claiming with the early penalty. Reward boost initial percent

TIP-008 xTETU on Fantom

Through this proposal, profit on Fantom is now split equally between the Profit Share, and TETU-USDC protocol owned liquidity. Tetu's implementation on Fantom network diverged from its original operation on Polygon network. As per TIP-003, the profit that comes from buybacks on Polygon network is split into different sources including: the profit share, the investment fund, and the TETU-USDC protocol owned liquidity.

Tetu on Fantom network started out with all the buyback profit being directed towards protocol owned liquidity. This decision came about to bootstrap TETU's liquidity on Fantom, but came at the cost of low utility for the xTETU token on Fantom. It became apparent that providing a Profit Share for xTETU on Fantom would bring more deposits to Tetu, and so it was enacted that 50% of profit is now directed to the Profit Share, and the remaining 50% directed to protocol owned liquidity.

xTETU on Fantom

TIP-007 Tetu Investment in Universe Finance Private Sale

DAO voting held by dxTETU holders decided that $10,000 from the Tetu Investment fund would be put to use and participate in the private acquisition of 333,333.0 Universe Finance Tokens, with a 66% discount to the public offering at the price of $0.03 per UNT (Fully Diluted Value of $30,000,000.0).

Tetu's Investment Fund is provided by 10% of all the performance fees to make investments that bring value to Tetu. This investment opened the doors to an alliance with Universe Finance, which in return has lead to many benefits for Tetu and Universe Finance alike; incentivized LP pairs for TetuSwap, potential collaborative vaults, and acquisitions of tetuQi and TETU tokens by Universe Finance.

Universe Finance is an active liquidity management platform of Uniswap V3 based on risk ranking and quantitative strategies. Universe Finance's focus is to provide effective and innovative solutions for the management of Uni v3 LPs, these solutions seek to serve both users with a more conservative risk profile and users who have a greater risk appetite. Universe Finance seeks to provide Uni v3 LP users with high returns, stable income, low costs and excellent convenience when using the dapps. This convenience is provided to the user through various automated functions such as auto compounding, automatic price range adjustment and lower gas costs to make these adjustments.

More information about Universe Finance

Universe Finance Docs

Tetu Investment in Universe Finance Private Sale

TIP-006 Rewards for Fantom network

A portion of TETU's total emissions are stored for use in networks that Tetu branches out to, which can be strategically deployed after verdicts are made within the Tetu community. This proposal made the decision to proceed with TETU emissions on Fantom network in the same fashion it is dispersed on Polygon network, providing it as rewards for vaults. In anticipation of operations on the Fantom network, the decision on how to engage TETU rewards was up in the air. The two options proposed were to either deploy regular emissions, or have a 60 day test period without any TETU emissions.

Distributing TETU rewards is an effective method at attracting new users early on and promotes the growth of the protocol when managed responsibly, however TETU's supply is capped to 1 billion tokens and discretion must be taken with TETU emissions. This means rewarding TETU emissions alone is not sustainable in the long run, however Tetu is being designed in such a way that emissions are not needed for the self-sustainability of the platform.

The arrival of Tetu on Fantom network gave the opportunity to test what Tetu without emissions would look like; how much utility and funds it would bring in this "emission-less" state, or to provide the same emission experience that Tetu offers on Polygon network. Ultimately, the decision was made to provide emissions in the same way as Tetu on the Polygon network.

Rewards for Fantom proposal

TIP-005 New Profit Sharing ratio

The PS ratio is an economic parameter of Tetu protocol that can be adjusted between 0% ~ 100% Tetu was released with the PS ratio in effect at 100% which means that all rewards produced by the vaults would be distributed in the standard flow with 0% of the rewards produced by the vaults being distributed to the underlying vault. This generated a high performance for xTETU generating an effective balance due to the incentives distributed to the vaults.

It is expected that over time the PS ratio will adjust more in favor of auto compound vaults rather than xTETU so that the attractiveness of the vaults is preserved. This is a measure that theoretically works in a counter-intuitive way, reducing xTETU holders' gains at present to obtain bigger and more reliable gains in the future due to self-sustaining productivity of vaults.

The PS ratio is managed in order to balance the productivity of the vaults with the incentives distributed to keep the vaults attractive and the decision to keep the PS ratio or change it is made through DAO voting by the dxTETU holders. By preserving the profitability of the vaults users will have a financial preference to use Tetu over other platforms.

New PS ratio Proposal

TIP-004 External Auto Compound

The proposal called on dxTETU holders to provide a 100% reward boost level to partners wishing to yield farming TETU based vaults. No yield farming would be whitelisted for vaults without TETU.

The DeFi market can take advantage of several growth opportunities through the development of partnerships, through mutual cooperation it is possible for two parties to reach a good result. It is often in the interest of protocols to take some care to not be farmed by external protocols or at least maintain some control over the threshold at which external protocols can Yield Farming on the native platform in order to avoid protocols that do Yield Farming to sell rewards and leave without creating solid positive effects for both protocols.

Tetu exercises this protection against yield farming from external protocols so that protocols wishing to farm TETU have to be whitelisted. Building on the principle of mutual benefits obtained through cooperation, the External Auto Compound proposal presented to the community terms in which Tetu actually would benefit from mutual benefits by granting yield farming permission to external partners such as Harvest Finance. External partners would benefit from farming in TETU-only auto vaults receiving an attractive APR to auto compound the underlying, while Tetu would benefit from the prospect of increased deposits provided by this flexibility of partnerships and an increase in buying pressure on the price of TETU due to the increase in demand for Yield Farming of TETU caused by users of other platforms.

External Auto Compound Proposal

TIP-003 Protocol Owned Liquidity

The automated yield aggregation and distribution is an interesting concept capable of providing a new investment management experience for Yield Farmers.

With the previous solutions of old challenges and the progress of the Tetu protocol the Yield farming experience in Tetu got even more interesting and the community presented solutions to problems that took on higher priorities, such as the low liquidity of the native TETU token.

Lack of liquidity is a major annoyance both for investors who want to build a large TETU position and for users who want to take profits or make a new reallocation of capital. A solution was needed to improve TETU's available liquidity. Some options in the governance proposal were presented and the solution chosen by dxTETU holders was to use a part of xTETU buyback to build a protocol owned liquidity position.

The result of this solution is that TETU liquidity will grow over time as buybacks keep happening until slippage is no longer an issue for users.

Protocol Owned Liquidity Proposal

TIP-002 Diamond Vault

xTETU is the core mechanism of the Tetu system. We realized that Yield Farming's automated profit aggregation and distribution mechanism could be even better with a locking system capable of providing even more profit to users. So dxTETU was conceived as the locking solution for xTETU.

Inspired by the success obtained from the Reward Boosting system, dxTETU was designed in a similar way, providing an environment where users can withdraw the deposited principal at all times, however there is no mathematical sense in not respecting the locking period until the end of its duration. dxTETU holders gain additional dxTETU that are obtained from users who decide to leave the vault before the locking period takes place.

The dxTETU governance proposal decided what the Diamond Vault locking duration time would be, in general the longer the locking period the more opportunities the dxTETU holders will have to get dxTETU from users who leave before the locking duration period.

The locking system creates an environment where long-term commitment to the protocol ends up being incentivized and rewarded, thus dxTETU has also become Tetu's governance token. The commitment to lock xTETU for at least 90 days to ensure protection against loss of principal prevents situations where users buy TETU, or move TETU from LP positions to xTETU to participate in governance proposals and then sell tokens or reallocate to the original position. The result is that dxTETU works in a simple and effective way that avoids governance manipulations.

The dxTETU is a vault that can be used very flexibly by the Protocol, it can be incentivized with xTETU to encourage long-term commitment and active participation in protocol governance, and it can also be used as a vehicle for sharing profits from partnerships.

Diamond Vault Proposal

TIP-001 Reward Boosting System

Tetu's first governance proposal was the creation of the Reward Boosting system. During the launch of the Tetu protocol many TETU rewards tokens were being distributed against an initial liquidity pool that had a very high token price. The result of this initial dynamic was not very surprising, the TETU token was under very strong sell pressure, so that the first users of the protocol were more focused on the price and volatility of the native token, than on the benefits that the protocol could provide through the aggregation of yield farming income.

Thus, the Reward Boosting System emerged as a very interesting idea to add a game theory element to TETU's Yield Farming in a way that provides the user with a balance of options between claim less rewards immediately or wait a little longer and collect all the TETU yield farming rewards with additional reward boosting from other users who claimed earlier. After the implementation of the Reward Boosting System, the TETU token achieved a little more stability and less volatility.

The result obtained by the Reward Boosting System was surprising and with the success of this new dynamic, users can reflect on more options to do with their TETU reward tokens without worrying about huge price instability and earn more rewards from other users who claim too early.

Tetu Reward Boosting System Proposal.

Delta-neutral strategies are a type of investment strategy that aim to minimize the sensitivity of an investment portfolio to changes in the price of an underlying asset. In the context of Tetu V2, delta-neutral strategies are used to balance the exposure of the portfolio to price changes of the underlying assets. This allows the portfolio to be less sensitive to market volatility and to minimize potential losses in the event of large price swings.

The goal of delta-neutral strategies is to achieve a balance in the portfolio such that changes in the price of the underlying assets are offset by changes in the value of other assets in the portfolio. This helps to reduce the overall risk of the portfolio and provides a more stable return over time.

Tetu V2 uses delta-neutral strategies as a key component of its investment approach, offering users a way to manage their exposure to market volatility and to potentially increase the stability of their returns. This helps to provide a more secure and reliable investment experience for users of the platform.

Uniswap v3 Dynamic Liquidity Strategies occasionally align with the delta-neutral standard, yet the constancy of this condition is not guaranteed owing to the fluidity of these strategies. On the other hand, TETU's Balancer strategies firmly uphold a delta-neutral position, faithfully embodying this fundamental investment tenet.

Uniswap v3 Dynamic Liquidity Strategies

The strategy can be used to earn swap fees in any Uniswap V3 pools whose assets (tokenA, token) are presented in lending platforms. Depending on type of asset pair (stable, volatile, correlated), the strategy has different initialization parameters: the price range for providing concentrated liquidity and the maximum price deviation from the median for rebalancing. For stable pairs, liquidity is generally provided in the narrowest possible range - one price tick.

General scheme of work

User deposits tokenA (USDC for Tetu V2 USDC vault, WMATIC for WMATIC vault etc) to vault. The vault deposits token to the splitter. Splitter selects a strategy with best APR and deposits token to the strategy. The strategy obtains the liquidity composition of the pool in the given price range and creates a loan token backed by tokenA in such a way as to fully utilize the assets in liquidity.

When the price in the Uniswap v3 pool changes so much that the position goes out of the price range or the current price deviates from the median by more than the parameter specified in the strategy settings, then liquidity position and the loan are rebalanced.

Depending on the parameters of the strategy, there are two types of rebalancing:

"swap" and "fill-up".

In "swap" rebalance, excess token or tokenB is exchanged using the Tetu Liquidator, while in "fill-up' method, the excess is added to a separate liquidity position half the size of the main range (from the current price to its edge).

1 tick strategy

The Uniswap V3 1 tick strategy is a way to borrow token B in exchange for token A and enter the A-B pool. Because token B were borrowed you have a very low impermanent loss when compared to other strategies.

In Uniswap V3, the situation is similar but can vary depending on the range. For stablecoins, the range can be set to a 1-tick price, creating a linear pool with a fixed price. The nature of the impermanent loss in this case is different.

If the price changes by any amount, the strategy will need to be rebalanced, which involves buying and selling tokens. However, the strategy also borrows some assets, which allows it to handle swap and repay operations effectively.

Overall, the Uniswap V3 1-tick strategy is a powerful tool for minimizing impermanent loss risks and maximizing profits

Rebalances and performance

The Uniswap V3 strategy frequently rebalances, with up to 20~40 rebalances per day during volatile periods. If the price changes too quickly, the fuse mechanic is employed to stop rebalances on high movement.

You can track the strategy's profit and loss on the info page.

Balancer Delta-neutral

bb-t-DAI (DAI + tDAI) + bb-t-USDC (USDC + tUSDC) + bb-t-USDT (USDT + tUSDT)

User deposits USDC to vault. The vault deposits UDSC to the splitter. Splitter selects a strategy with best APR and deposits USDC to the strategy.

The strategy invests the received amount in the Balancer Boosted Tetu USD pool. To invest in the pool the strategy should have USDC, USDT and DAI in proper proportions. Initially the strategy has only USDC, so it borrows required amounts of DAI and USDT in TetuConverter.

The strategy splits available USDC amounts into three parts in proportions related to the reserves of the assets in the Balancer pool. Two of the parts are used as collateral to borrow USD and DAI. The third part is deposited to the pool as is. TetuConverter supplies USDC to a lending platform (i.e. AAVE, dForce, etc) and gets supply fee and rewards back as a profit. TetuConverter finds a lending platform with the best current APR. Than TetuConverter borrows USDT/DAI on the lending platform and receives an obligation to pay interest on closing the debt.

The strategy deposits available amounts of USDC, DAI, USDT to the Balancer Boosted Tetu USD pool and receives pool bpt in exchange. Balancer Boosted Tetu USD pool works similar as Balancer Composable Stable Pool - it deposits received amounts to three linear pools. The linear pools forward a part of received tokens to Tetu strict vaults that provide additional fees and rewards.

The strategy periodically collects rewards from TetuConverter and Balancer pool and swaps them to USDC using Liquidator. Received USDC amount is reinvested to the Balancer pool.

To withdraw an amount from the strategy, the strategy withdraws liquidity from the pool and receives USDT, DAI and USDC amounts on balance. Then it needs to close the debts in TetuConverter. To close a debt, the strategy should repay more than it was originally borrowed: the borrowed amount + repay debt. If the strategy doesn’t have enough USDT/DAI to make repayment, it can swap some USDC. As soon as it has the required amount of USDT/DAI on its balance, it repays the debts and receives the collateral back together with a supply fee.

Smart Vault is a combination of implementations drawn from Synthetix pool for their innovative reward distributing and Yearn vault for their share price model.

Both implementations are well tested and audited, so implement them without major changes.

Vaults have protection against external contract usage and any contract is whitelisted before being put to work in our protocol.

No fees for deposit / withdraw

Vaults

By default all vaults use the Synthetix pool mechanics for distributing wrapped profits during the week long period.

Vault rewards have two parts - weekly rewards from TETU emission and rewards that vaults strategy earns from an external project.

When you stake assets - the asset will earn yield - and this yield will distribute the following 4 weeks (without any locking period). Anyone who enters the vault will get a part of previous profits and stop earning their portion of the profit share upon leaving the vault.

It is a system for rewards that decreases over time. One thing to consider is that the investor will hold an asset for 4 weeks after the rewards end in the external pool due to the distributing period. It will be good for the external project since we provide liquidity even when they end the rewards period. Some external projects increase the underlying value during the time (like Wault pools) and it will be reflected in the share price.

The Strategy Splitter is a feature that works as a vault extension. The Strategy Splitter enables the vault to maximize yield farming gains through optimal asset allocation.

The Strategy Splitter analyzes the statistics of earnings results provided by the vault strategies allowing the calculation of ideal ratios based on the data provided by the statistics, in this way the Strategy Splitter maximizes the profits of the vaults.

Strategy Splitter rebalances occur approximately once a day, the allocation of assets in the strategies is carried out automatically according to the profitability of each strategy.

The strategies used by the Strategy Splitter and the % of assets exposed to each strategy is displayed below the asset name. Note that the Strategy Splitter performs the most appropriate allocation in the strategies used by each vault, in some vaults it exposes more assets in a strategy than others.

If a strategy is exploited or becomes compromised, other strategies in the vault will not lose money, in case of emergency, rebalances will be manually stopped.

Withdrawing

The process of withdrawing funds from the strategy works normally like any other vault, but there is one exception that is when the user has an amount greater than the optimal withdrawal amount. The withdrawal transaction may fail due to gas issues.

When this occurs the user will see a special UI that looks a bit like this:

In this scenario, to remove the assets from the vault, the user will need to:

• perform the “Request” transaction

• after that perform the “Process” transaction

After confirming the “Process” the user’s assets will be available in the Strategy Splitter and the user will see the standard UI and be able to withdraw the assets without problems.

Tetu Boosted Pools offer an innovative way for users to maximize their yield farming potential. Similar to AAVE boosted pools on Balancer, Tetu Boosted Pools employ Tetu vaults powered by strategy splitter instead of AAVE. This shift offers users a unique opportunity to increase their yields by utilizing a range of advanced strategies.

The basic concept of Tetu Boosted Pools is that when users deposit on Balancer, any idle assets are automatically deposited into Tetu vaults. These vaults are designed to generate additional income by automatically investing in various platforms.

The Tetu Boosted Pools incorporates a unique feature from Tetu's vaults known as Strategy Splitter. The Splitter allocates deposited assets between different DeFi platforms such as AAVE, Compound and dFORCE. This allows users to diversify their investments and earn higher yields through multiple platforms. The Tetu Boosted Pools offer a number of advantages over traditional yield farming strategies. By utilizing Tetu Boosted Pools, users can achieve a higher return on investment with minimal risk. Additionally, the strategy is fully automated, allowing users to earn yield on their assets without the need for constant monitoring.

For those interested in learning more about Balancer Boosted Pools, comprehensive documentation is available.

To invest in Tetu Boosted Pools, visit the Balancer pools page on Polygon and search for Tetu.

Zapping

Zap solution converts a token to another using a defined route and can be used to deposit or withdraw from a vault.

Through the Zapping Function users can enjoy the efficiency of participating in a yield farming vault with just one transaction, in general with zapping users can perform only one transaction to enter and exit a yield farming vault. Without using zapping the user would have to perform between 6 ~ 8 transactions to deposit to a yield farming vault.

Withdraw and converting to the token is also possible.

Contracts

This solution included three contracts

• PriceCalculator

• MultiSwap

• ZapContract

PriceCalculator

In this solution Price Calculator will find the best liquidity pool across predefined Swap Platforms.

getLargestPool(address token, address[] memory usedLps)

For calculation price for any LiquidityPool pair using

getPriceFromLp(address lpAddress, address token)

MultiSwap

This contract has two purposes:

Find the best route for swap two tokens. The result will contain swap pairs.

findLpsForSwaps(address _tokenIn, address _tokenOut)

The function should be called as a view from UI before the swap

Multi-swap will execute swaps for a given route. Used inside ZapContract but also can be used as a dedicated solution.

multiSwap(address[] memory lps, address tokenIn, address tokenOut, uint256 amount, uint256 slippageTolerance)

ZapContract

This contract implements all required steps for deposit/withdraw to the vault.

Resources

Zap Feature article on Medium.

Permanent Locking

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.

QI and tetuQi

The tetuQi token represents QI tokens locked for the maximum period in QiDao. In order for the users to participate in tetuQi, all that is required is deposit QI tokens in the tetuQi vault. QI tokens deposited in the vault will create tetuQi at a ratio of 1:1.

tetuQi LP

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 Balancer.

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.

QiDao integration

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.

Resources

tetuQi on Medium

QiWars on Medium

The concept of vault shares will be illustrated in the following demonstration. Note that I have $1.20 USDC and am about to deposit it into the DINO vault using the Zap function. After depositing my $1.20 USDC will start generating Yield Farming earnings in the vault and I will receive xDINO vault shares tokens representing my deposit.

After making the $1.20 USDC deposit you can notice that I have received 8.75 xDINO tokens which are my Deposit Ticket. This deposit ticket represents 9.19 DINO tokens generating earnings in the vault.

I received 8.75 xDINO vault shares because their Price Per Full Share is 1.049421 DINO. The DINO vault uses the autocompound strategy, which sells 99% of Yield Farming earnings and deposits them in the vault. After this process of farming and autocompound, the vault's PPFS increases relative to the underlying asset.

Example of interactions with the vault

Let's say that after some time the vault accumulates Yield farming earnings and the PPFS is now 1.8765432 and I decide to add another 100 DINO tokens to my position, upon depositing 100 DINO I will receive 53.28947396 xDINO (100/1.8765432) and my position current will now be 62.03976932 xDINO which worth 116.42 DINO.

Now a new example, I still have the same amount of 62.03976932 xDINO, but after a good result from Yield Farming, the PPFS is now 3.123456 which worth 193.77 DINO. I decide to withdraw 93.77 DINO to realize profits and leave 100 DINO Yield Farming in the vault, after the withdrawal I will have 32.01581838 xDINO vault shares which worth 100 DINO.

Resources

An instructional video about xTETU, dxTETU and Vault Shares.

Reward Boosting System

When users join farming pools, they immediately start earning rewards. It will take 28 days to be eligible to claim 100% rewards. It is possible to immediately claim 70% of the rewards entitled to receive from the 1st day, but the rest will be redistributed to all participants in the underlying vault. Rewards entitled for claiming will be increasing each day on the vault proportionately up to the 28th day.

After 14 days, users will be eligible to claim 85% of the total rewards. (70% base + 15% referring to the first 14 days of participation in the vault, the remaining 15% will be achieved linearly until the 28th day, thus completing 100% rewards).

Users who claim earlier than 100% will have their remaining rewards left to be redistributed to the vault, let’s say user claim rewards with 75% from total, the remaining 25% rewards will be redistributed to every other participant on the underlying vault. This redistribution will increase future rewards for everyone who remains in the vault.

Once claimed, no matter in what ratio, the reward bar will be reset to 70% again boosting to 100% in 28 days. Users are able to deposit and withdraw from the vault without any effects on the rewards bar, only claim actions reset the bar.

100% Reward Boosting

The image below shows the status of rewards after 28 days of participation in the vault, note that the user can already claim 100% of rewards as shown in both corners of the rewards bar and that there is no longer a period to wait for claim 100 % as shown in “Days left 0” inside the rewards bar. User reached 100% of rewards on August 26th.

In this situation, the participant of this vault that is already maximized is also receiving TETU redistributed to this vault from other users who claimed the TETU before the 28 days necessary to receive all rewards.

Maturation Period

The image below shows the situation in which the user is receiving rewards still in the maturation period. TETU rewards can be claimed at any time, however, the earlier TETU is claimed during the maturation period, the lower the TETU rewards ratio received compared to the end of the 28-day period in which the user has 100% rewards and the higher will be the amount of personal TETU left to be redistributed to all pool participants. 70% rewards ratio is the minimum the user can receive, even if the user claims rewards and the bar is reset it will always start from 70%.

Resources

Tetu V2 builds upon the foundation of the original Tetu platform, providing an enhanced experience focused on the delivery of robust and efficient investment strategies. Designed to cater to those seeking secure and lucrative investment options, Tetu V2 facilitates the deployment of delta neutral strategies and allows entry into sophisticated financial instruments using a single asset. The emphasis is on innovation and ease of use, transcending the complexities often associated with such financial products. While Tetu V1 concentrates on classical yield farming, Tetu V2 expands the horizon with unique and versatile investment opportunities, simplifying advanced financial engagements for its users.

HardWork is a smart contract function that compounds the yield generated by Tetu strategies. When HardWork is called, a portion of the rewards are distributed back into the underlying yield farm, and the remaining rewards are then allocated by the Profit Destination ratio.

HardWorks can be tracked in real-time on the hard-works room on discord. Marked in blue are two examples from HardWorks, one where 1414 TETU was bought back from the DAI vault of the AAVE folding strategy, and the other where 15091 TETU was bought back from the KLIMA vault.

The total result of HardWorks since the creation of Tetu can be seen on the stats page under "Strategies earned TETU" below is displayed the amount in TETU of the platform's production in the last 24 hours and the % of how much the production in the last 24 hours represents in relation to the total already earned.

Audits

Tetu v2 was audited by PeckShield and found to be secure. According to the auditor:

"Based on Tetu, the audited Tetu v2 introduces some new features, which enables protocol users to participate in governance with veTETU, improves the TetuVault with new deposit/withdraw fees, and introduces new SplitterV2 with auto-rebalance logic adopted to multiple farming strategies, etc. During the audit, we notice that the current code base is well organized and those identified issues are promptly confirmed and fixed. Meanwhile, we need to emphasize that smart contracts as a whole are still in an early, but exciting stage of development."

Bug Bounty Program

Tetu V2 has a Bug Bounty Program by Immunefi that aims to increase the security of the protocol's smart contracts by offering rewards in TETU to white hat hackers and users who identify weaknesses and demonstrate them with a PoC.

Check the scope and rules of Tetu's Bug Bounty program on Immunefi.

Addresses

Reward Distribution System

Voting system for emission distribution

The TETU V2 platform features a voting system for the distribution of TETU rewards. This allows veTETU holders to vote for different vaults, and the system distributes TETU rewards to the vaults based on these votes. Vault liquidity providers have the opportunity to offer incentives or "bribes" to voters to attract more profit for their assets. This generates additional income for veTETU holders.

Every week, the available amount of TETU tokens is loaded into the Voter contract. Additionally, all buybacks for vaults are also transferred to the Voter contract. This means that a portion of the strategy profit does not go directly to the vault, but is under the control of veTETU holders.

Through this voting system, veTETU holders have full control over all attributes of the Tetu platform. This allows them to make informed decisions and have a direct impact on the distribution of rewards and the direction of the platform. The ability to control these attributes is a key feature of the veTETU platform, giving holders a significant level of autonomy and empowerment.

Voting system for platform attributes

Tetu platform attributes will be fully under the control of veTETU holders, allowing them to make informed decisions and have a direct impact on the platform's direction and the distribution of rewards.

Compound ratio for strategies

There is a compound ratio system for each strategy to divide strategy profits into two parts: auto-compounded and non-compounded.

The auto-compounded profit will be immediately added to the linked vault. By default, the compounded part of each strategy is set at 0%. This allows for flexibility in the amount of profit that is automatically added to the vault.

The non-compounded profit will be transferred to the ForwarderV3 contract, where it will be periodically sold to TETU. The TETU amount will then be divided in three different directions:

1. The first portion will be allocated to InvestFund.

2. The second portion will be transferred to the TetuVoter, where it will be distributed to gauges based on votes.

3. The remaining amount will go to VeDistributor and will be distributed weekly to veTETU holders.

For example, if a strategy earns 100 USDC for the underlying asset of WMATIC, and based on votes, the compounded part is set at 50%. 50 USDC will be sold to buy WMATIC for the vault, allowing users to receive their profits immediately. The remaining 50% will go to ForwarderV3.

In this scenario, ForwarderV3 would now have 50 USDC. Based on votes, the InvestFund ratio is set at 10% and the Gauge ratio is set at 30%. The 50 USDC would be sold to TETU, resulting in, for example, 10,000 TETU. 1000 TETU would then be transferred to the InvestFund (10%), leaving 9000 TETU. 2700 TETU would be transferred to TetuVoter to be distributed to gauges based on votes. The remaining 6300 TETU would be transferred to VeDistributor to be distributed to veTETU holders.

This system allows for a customizable approach to strategy profits, giving veTETU holders control over how the profits are distributed and invested.

Boosted Rewards

Tetu's Boosted Rewards system allows liquidity providers to earn even more rewards through the use of the platform's native token, veTETU. By connecting veTETU to any vault, users can receive a boost in their rewards, with the potential for even greater rewards as the amount of veTETU power held increases.

Similar to other protocols such as Curve, Solidly, and Dystopia, Tetu's boost system operates on a zero-sum game principle. The total amount of rewards remains the same, but the boost allows for an increase in a user's "virtual" total value locked (TVL), resulting in a higher profit. Yet, it's worth noting that as more users in the vault utilize the boost, the overall profit for each user decreases.

The boost is calculated by combining a user's default virtual balance (40% of their real balance) with a bonus virtual balance, which is determined by the user's veTETU power to the total veTETU power staked. For example, if a user deposited 100 USDC into the gauge with a total staked USDC of 1000, their default virtual balance would be 40 USDC. If they also held 1 000 000 veTETU power out of a total 10 000 000, they would receive a bonus virtual balance of 90 USDC (10% of the gauge supply). This would result in a virtual balance of 130 USDC.

The final profit for a user will depend on the amount of veTETU power held by other users in the vault. By utilizing the boost system, liquidity providers have the potential to earn even more rewards through their participation in Tetu's liquidity pools.

Smart contract update progress is compiled in this section.

Weekly AMA

Important updates regarding the development of the protocol can also be obtained from Tetu's weekly AMAs. To watch the AMAs, access the .

Welcome to the veTETU Utility page, where the benefits and features of holding veTETU are showcased. As a holder of veTETU, users have access to a range of utilities that can help maximize returns and improve the experience on the Tetu platform. These utilities can be the primary reason why individuals decide to invest in Tetu. The page aims to provide an overview of the various utilities available to veTETU holders and how they can help users achieve their financial goals in the DeFi space.

Reflection Gauge Proposals

Holders of veTETU have the ability to vote in reflection gauge proposals. Tetu has acquired governance in Balancer through tetuBAL product, which allows Tetu to influence the BAL emissions. veTETU holders can vote for any Balancer gauge in the reflection gauge proposals and then receive bribes from third parties. Here is the link to the Discord channel where gauge reflection proposals are announced.

Rewards from Holding veTETU

Holding veTETU tokens provides users with the opportunity to receive rewards. These rewards are a share of the fees generated from Tetu's various products, including its farming vaults. By holding veTETU, users can earn a share of the profits made by the platform. Also, veTETU holders can receive bribes if they vote for gauges with bribes attached. In DeFi, bribers can attach a bribe to a particular gauge to incentivize liquidity of desired vaults without spending too much. Voters that accept bribes earn an additional profit.

Boost User Rewards from Vaults

veTETU holders are able to improve their earnings and APR by using their veTETU to boost the vaults that they are farming. The veTETU boost system is similar to the Curve Finance boost system. The final result of boosting is influenced by the TVL and veTETU power from everyone in the vault.

Vote for Compound Ratio and Platform Attributes

Users can vote for the auto-compound ratio on the strategy page using their veTETU tokens. This vote determines the allocation of profits generated by Tetu, defining the percentage of profits that will be allocated to auto compounding in the underlying vault and the portion that will be distributed to users. Users are also able to vote on platform attributes such as the Profit Share ratio and Investment Fund ratio. This allows users to have a say in how profits are managed and can potentially increase their earnings.

Governance in Vault Rewarding

Holders of veTETU have governance over how profits earned by the platform are distributed, including how the emissions of TETU are distributed to incentivize vaults in Tetu.

Vote for Farming Strategy

Through the Tetu governance system, users holding veTETU tokens can vote for the strategies they prefer to be implemented in farming. By casting their vote, users can have a say in how the platform's resources are allocated and which strategies are pursued.

The goal of the update adds reward boost functionality and prepare contracts for the Zapping solution.

Contract addresses:

new announcer logic - 0x12e4a470Ed725a0450D543C41006DA678809B2b8

new controller logic - 0x2B2105f79d91196091502476d7F00d482d223Db3

vault controller - 0xC5b3aF6FB4b2ff14642e337F41B86C9494f70b43

new vaultLogic - 0x52646dfb3E1D540D85DC32223A220a6F9c7eD759

Changes https://github.com/tetu-io/tetu-contracts/compare/release-1.0.0...release-1.1.0

Base contract changes

Announcer

Added announce function for single uint256 variables

Added announce function for stopping vaults

Fixed minor bug for the clear announces function. Now clear announce don't change array ordering and opHash code for multiple announces can be fetched normally.

The clear function is now able to call for DAO address.

Controller

Moved changeVaultsStatuses, addRewardTokens, removeRewardTokens functions to VaultController. The reason - space in the controller ended.

Added VaultController address functionality

Added recipient address for controllerTokenMove function - require for moving tokens from disabled vaults directly to NotifyHelper

New contract - VaultController + VaultControllerStorage

Similar contract as Controller.

Will contain governance functions specified for vaults.

Old non-time-locked functions: changeVaultsStatuses, addRewardTokens, removeRewardTokens

New time-locked function: setRewardBoostDuration, setRewardRatioWithoutBoost, stopVault

SmartVault

Boost Reward functionality added.

Functions: changeActivityStatus, addRewardToken, removeRewardToken now able to call only from VaultController.

Added to function: notifyTargetRewardAmount additional overflow checking.

Added stop function. This action will move all reward tokens to the controller contract.

Infrastucture contract changes

Added new contracts ZapContract and MultiSwap

More details in Tetu Zap Solution

These changes were made since version 1.3.0 and deployed during November-December 2021

The main work was about Fantom launch adjustments.

Base Contracts

Controller 1.2.0 -> 1.3.0

Added new event logs.

Optimized contract size - removed modificators.

Mint function now has predefined recipients.

Preparation for Gelato usage for AMB strategies rebalances.

ForwarderV2 1.0.0 -> 1.2.0

Totaly new logic for creating routes for the liquidation process.

SmartVault 1.5.1 -> 1.8.2

Added logic for deposit fee.

Optimized contract size - removed modificators.

Added protection mode.

Reentrance lock protection for deposit/withdraw

Strategies

FoldingStrategies

Create autocompound logic with adjustable percent.

The more flexible way to collect and liquidate profit.

Optimized redeem process.

New strategies:

• KLIMA

• DinoV2

• AAVE-MAI-BALANCER

• Scream

• QuickSwap Dual farming

• VESQ

TetuSwap

OpenZappelin contracts moved to local files

TetuSwapFactory 1.0.1 -> 1.10

Added necessary time-locks and events

Introduction

Tetu Pawnshop is a decentralized marketplace designed for transaction between lenders and borrowers using tokens and non-fungible tokens (NFTs) as collateral. Currently, it supports only ERC-721 and ERC-20 tokens. Apart from loan services, it also offers conventional marketplace functionalities such as buy/sell and auctions.

Key Features

Tetu Pawnshop's operations primarily revolve around four key fields that need to be filled out:

1. Item for Sale/Collateral

2. Set Price/Minimum Price

3. Set Loan Duration

4. Set Fee

The type of transaction that will be carried out (Sell, Auction, Loan Auction, Loan) depends on the information provided in these fields.

Sell Position

The Sell position allows users to list an item for sale at a specified price. Once the position is opened, it is available for others to purchase. If the seller changes their mind, they have the ability to close the position, provided it has not been sold yet.

Loan Position

The Loan position allows users to use their assets as collateral to get a loan. This involves more steps than the Sell position. To set up a loan, the user must:

1. Choose the collateral

2. Set the amount they wish to borrow against the collateral (price)

3. Specify the loan duration

4. Set the fee

Once the loan position is open, other users can lend the specified amount. If the borrower decides not to go ahead with the loan, they can close the position. After the loan is issued, a timer starts counting down the loan duration. If the loan is not repaid with the fee before the timer runs out, the lender can claim the collateral. However, if the lender has not claimed the collateral after the timer runs out, the borrower can still repay the loan and get their collateral back.

Auction

Tetu Pawnshop supports two types of auctions: Sale Auctions and Loan Auctions.

Sale Auction

In a Sale Auction, the user specifies the item they want to sell and a minimum price (optional). Once the auction is open, other users can place bids on the item. The auction lasts 24 hours from the placement of the first bid, and each new bid extends the auction by another 24 hours. The minimum increase for each subsequent bid is 10% of the previous bid.

Loan Auction

A Loan Auction operates similarly to a Sale Auction, but the result is a loan rather than a sale. Users must specify the collateral, minimum price (optional), loan duration, and fee.

In both types of auctions, the auction owner can close the auction as long as no bids have been placed. However, once a bid is placed, the auction cannot be closed unless all bidders withdraw their bids.

Bidding

In auction participation, bidders must ensure they have the required bid amount in their wallets as bids lacking sufficient funds won’t be registered. A participant can only have one active bid at a time and must withdraw an existing bid before placing a new one. It’s important to note that the last bidder is bound to the auction and cannot withdraw their bid until the auction concludes or when a higher bid is placed. The auction is considered closed once the auction timer runs out. To finalize the transaction, the deal owner has a period of two weeks to accept the final bid, otherwise the last bidder can withdraw their bid, thereby re-opening the auction for another 24 hours (or no predetermined duration if no further bids are placed) and the auction will be opened again.

Post-Auction Procedures

If the deal owner accepts the bid:

1. For Sale Auctions: The item is transferred to the winning bidder.

2. For Loan Auctions: The Loan Duration timer starts. The borrower can repay the loan with the fee before the timer ends. If the timer ends and the lender hasn’t claimed the collateral, the borrower still has the opportunity to repay the loan and reclaim their collateral. However, if the lender decides to claim the collateral after the Loan Duration timer ends, the borrower loses their right to repay the loan and reclaim their collateral.

The Tetu Pawnshop thus provides a dynamic, versatile, and secure platform for users to trade, lend, and borrow using both fungible and non-fungible tokens. By supporting multiple types of transactions and offering user-defined parameters, it allows for flexibility and caters to a wide range of financial needs in the Polygon ecosystem.

Fees

When opening a position in the pawnshop, users are required to deposit 100 TETU. This deposit is returned upon the closing of the position or when the deal is concluded. As a result, users should ensure they maintain an adequate TETU balance prior to initiating a position. Additionally, a fee of 1% is charged on the total value of each deal. Both the 100 TETU deposit and the 1% fee are set by the contract and may be modified in the future.

Tetu VaultV2 boasts a host of advanced features, including:

• ERC-4626 compatibility.

• Improved strategy splitter.

• Insurance system to mitigate losses from auto-covering strategies.

• StrategySplitterV2 is now a part of the system.

• Cheap transactions, with deposit and withdrawal fees amounting to less than 200k.

• Users will have the ability to control the automatic HardWorks system and a built-in system for calculating strategy profitability.

With minimal deposit and withdrawal fees of 0.2%, which will be directed to the Insurance contract, the vault is ideal for farming a wide variety of LP tokens, pools with taxes, and more. The new SplitterV2 eliminates the need for manual rebalancing and is optimized for farming stable sources of income from popular DEXs and lending platforms such as Uniswap V3.

These changes were made since version 1.4.0 and deployed during January-February 2022

Base contracts

ArrayLib

Added sorting functions

Bookkeeper 1.1.2 -> 1.1.5

Registration vault and strategy logic was changed. Now we check them on Controller instead of internal Bookkeeper arrays for reducing gas cost.

Reward distribution logic was improved for properly register StrategySplitter snapshots

ControllableV2

New base component. Gas usage optimised. Compatable with V1 slots but some functions removed, require properly changes on child contracts.

Controller 1.3.0 -> 1.4.1

Contract size optimized. Was removed all modifiers and replaced to functions calls.

Added StrategySplitter governance function addStrategiesToSplitter()

ForwarderV2 1.2.0 -> 1.2.3

Slippage now is a changable variable.

Added minimal amount for processing for reducing gas cost of doHardWork actions

SmartVault 1.8.2 -> 1.10.2

Migrated from Controllabel to ControllableV2

Created VaultLib, moved some static logic to the lib. Properly changed functions for using the library.

Optimisation for reducing gas cost.

Name and Symbol can be overriden. However it will be not reflect on polygonscan :(

Added a logic for

• call doHardWork on invest actions

• ability to always call invest on deposit actions

Removed SafeMath library.

Strategies

All strategies doHardWork() now able to call directly (from HardWorkers EOAs) without using vault or controller. It needs for more flexible managing this process from off-chain scrips.

Removed deprecated interfaces

Folding strategies

Added manual actions for HardWorkers

Now we are not investing assets and not rebalance during doHardWork for reducing gas usage. These actions moved to off-chain script and calls when it is really necessary.

Proxy strategies

Created ProxyStrategyBase for using with proxy strategies

StrategySplitter

New middle layer solution. Using between Vault and multiple strategies.

For vault the splitter is a strategy, for sub-strategies the splitter is a vault.

Contains partially functionality from vault and strategy for properly emulating behavior.

New strategies:

• Alpaca

• Beethoven

• Impermax

• Qi staking

• Self farm strategy

• Nacho

• Tomb

Infrastructure

PriceCalculator 1.3.1 -> 1.3.2

Added balancer tokens price determination

Autorewarder 1.1.2 -> 1.1.4

Now we are able to exclude some platforms from calculation.

Distribution period changed to 7 days

RewardCalculator 1.4.1 -> 1.5.3

Removed deprecated functions

Optimised reward calculation process.

TetuSwap

TetuSwapRouter 1.0.0 -> 1.1.0

Added sync() call for each swap call

Investing and Boosting

The veTETU Boosting System works similarly to the veCRV boosting system. Users are able to deposit funds into the Tetu platform and add veTETU NFTs as a "boost" to their deposits, which increases their overall earning potential. This works by allowing the veTETU NFTs to amplify the returns generated by the underlying assets in the vault.

The veTETU boosting system offers a way for users to increase their APR on Tetu deposits. The amount of veTETU held by a user affects the boost level, with those not attaching a veTETU NFT having the lowest APR. However, users do not need to hold a large amount of veTETU to see a significant boost. The reward boost is non-linear, meaning that small depositors can still effectively boost their returns without the need for a huge deposit in the gauge.

To learn more about how boost works check out the detailed article

veTETU Withdrawal

To initiate a withdrawal from veTETU, users must first select the specific veTETU. An important factor to consider is the voting history tied to the selected veTETU. Should any votes have been cast using this veTETU, a voting reset is required before proceeding with the withdrawal.

Vault Info

On the Vault Info page, users can access important information such as the total value locked (TVL), the number of users in the vault, and the total profits and losses generated by the vault.

Managing veTETU NFTs

Users have the ability to merge their veTETU NFTs to concentrate their voting power. On the other hand, users can also split their veTETU NFTs to diversify their votes. A step by step guide on how to merge and split veTETU NFTs can be found in the accompanying article.

Platform Attributes

This section introduces the Platforming Voting home page, which serves as a comprehensive overview of the Tetu platform. Users can adjust platform attributes by voting with veTETU. One of the things that can be voted on is the percentage of profits that go to the investment fund. In addition, users can also vote on the percentage of emissions that go to vaults as incentives. When a user votes using their veTETU, each vote uses up one of their veTETU power. This means that if a user has 10 veTETU power and uses all 10 to vote on the investment fund, they won't be able to use any of their remaining veTETU power to vote on other attributes like vaults or bribes. Each veTETU power can only be used for one vote at a time, and once used, it cannot be used again until the vote is revoked or expires. When a user votes for an attribute in the Tetu platform using their veTETU tokens, a portion of their total veTETU is allocated to that specific attribute.

For instance, if a user has 100 veTETU and votes 10% for the Investment Fund and 10% for vaults, then 10 veTETU votes are assigned to the Investment Fund and 9 veTETU votes (10% of the remaining 90) go to vaults. This leaves 81 veTETU which are automatically allocated to bribes.

It's important to note that the remaining veTETU will be automatically allocated to the remaining attributes that haven't been voted on, at the time of the voting decision. This means that a user must consider how their remaining veTETU will be allocated before making their initial votes.

Vaults

Users can attach bribes to vaults and vote with their veTETU power to increase the APR of the vault. The effect of the veTETU votes on the APR is displayed in real-time at the moment of voting.

tetuBAL gauge reflection

The voting channel on Tetu Discord allows users to keep track of the gauge reflection votes and make decisions accordingly. Additionally, the Tetu Community page provides a valuable resource for users to analyze the most profitable pools and make the best use of their votes.

Rewards

Users can view and claim veTETU rewards and also rewards from the gauges and bribes.

Time Locks are a smart contract feature that states that some actions will only be performed after a certain period of time rather than immediately.

There are critical actions that can be used for the good development of the protocol, but the same functions can be performed by malicious individuals with the intention of harming users. Time Lock protects the user from malicious actions and individuals providing time to user protects their funds in case they identify suspicious activities.

All critical contracts in TETU have a 48 hour timelock to provide greater security to users. Very instructive articles on how to check Time Lock Schedule and perform Emergency Withdraw can be read in Guides.

Proxy contracts with 48 time-lock

Tetu has two types of proxy contracts:

• TetuProxyControlled - upgrade can be done only after announcing in Announcer and 48h time-lock period expired

• TetuProxyGov - proxy contracts without time-lock, governance can upgrade it at any time. We are using for the most noncritical contracts (contracts with view functions and governance infrastructure)

List of time-locked proxy contracts:

• Announcer

• Bookkeeper

• Controller

• FeeRewardForwarder

• FundKeeper

• VaultController

• MintHelper

• All SmartVault instances

• TetuSwapFactory

Proxy without time-lock

• AutoRewarder (reward distribution processing under full control of governance)

• RewardCalculator (only view functions)

• PayrollClerk (governance infrastructure)

• ContractReader (only view functions)

• PawnshopReader (only view functions)

• PriceCalculator (only view functions)

Immutable contracts

• All strategies

• TETU token

• LiquidityBalancer

• NotifyHelper

• MultiSwap

• ZapContract

• TetuPawnshop

• TetuSwapPair

• TetuSwapRouter

• Mutlicall

• ContractUtils

Tetu platform can't pause contracts for withdrawing users' funds.

However, we can pause deposits or emergency withdraw funds into strategy from an external project.

By the nature of the emergency, these actions don't have any time-locks and can be done by governance multi-sig wallet immediately.

Vaults with paused deposits will be shown in the "Deactivated" section of the website UI. You freely withdraw your funds at any time

Tetu has a central governance contract - Controller under control of MultiSig Wallet with public signers.

However, for reducing EOA effect we implement different levels of access to our contracts.

Level 1 - Strict access

We have 48h time lock for any actions on this layer.

Protection logic implemented in a special contract - Announcer

Announcer contains scheduling for time-locked operations.

For each function announce call twice forbidden.

Function types under time-lock control:

• Any contract address changes in Controller

• Any ratio changes (currently Profit Sharing and Fund ratios)

• Any token movements from contracts to MultiSig Wallet

• TETU mint operation

• Proxy contract upgrades

• Strategy change for a vault

The only controller has access to this type of function and can call it only after the time-lock period.

Level 2 - Governance actions

On this layer, we will not use time-lock for the reason of not critical functionality or urgent actions.

Controller or Governance can call it immediately:

Bookkeeper

• Remove vaults or strategies from the registered lists

Controller

• Add/remove Reward Distributor addresses

• Add/remove HardWorker addresses

• Add/remove from Whitelist

• Register Vault/Strategy

FeeRewardForwarder

• Set conversation path for rewards

Strategy

• Emergency exit from external project and pause investing

• Continue investing

• Move money from strategy to vault

• Invest money from strategy to external project

MintHelper

Only MintHelper has access to our TETU token contract and this address is unchangeable.

• Setup Dev Funds addresses and ratios for next mints

SmartVault

• Change activity status

  Deactivated vault can't do HardWork and accept Deposits. Withdraw allowed.

• Call DoHardWork

• Add/Remove reward tokens

• Rebalance vault (withdraw all from strategy to vault and invest again)

• Withdraw all from strategy to Vault

LiquidityBalancer

• Move tokens from LiquidityBalancer to Controller contract

• Set target Price/TVL

• Set Router

• Set Targets' Update ratios

NotifyHelper

• Disperse weekly emission

• Move tokens from NotifyHelper to Controller

PayrollClerk

• Add worker or change the worker wallet address

• Change any worker settings except worked hours

• Pay salary

• Set Price Calculator address

• Move tokens from PayrollClerk to Controller

PriceCalculator

• Change any settings

Level 3 - HardWorkers and Reward distributors actions

Any actions allowed for HardWorker/Distributor also allowed for Controller and Governance

Allowed:

• DoHardWork for HardWorker

• Call LiquidityBalancer for HardWorker

• Disperse rewards for vaults for Reward Distributor

Tetu has 3/5 multi-sig wallets.

Polygon: 0xcc16d636dD05b52FF1D8B9CE09B09BC62b11412B

Ethereum: 0x4bE13bf2B983C31414b358C634bbb61230c332A7

BSC: https://bscscan.com/address/0xf00fD5282538F1C81df9F8388023FFDB3565c0D4

Signers

Vsevolod Grigorovich aka belbix

CoFounder and main smart contract developer.

Timur Mullayanov aka Timuricio

Art Director and CG designer.

GodInMaking

Tetu biz dev.

0xkila

Core team member of Retro and Stabl labs

dvpublic

Core solidity developer

Tetu's development team makes every effort to ensure that smart contracts are safe and work as expected.

Tests

We are using Hardhat framework with typescript configuration.

Test framework - Mocha.

All test code has strict typification with typechain that dramatically reduces possible mistakes.

Over 200 tests for the base functionality and over 600 tests for strategy implementations.

Static analyzers

All code checked with solhint and slither

Test environment on Rinkeby

Fully functional code are deployed on Rinkeby test net.

Every business logic was tested on deployed contract with additional tests.

You can always try the last version contracts/UI on https://staging.tetu.io/

Audit

Tetu is audited by DeFiYield and PeckShield.

Central governance with GnosisSafe

Tetu team doesn't have access to users' funds.

All critical contracts that keep users' funds have 48 hours Timelock.

Any actions that can change critical contracts state under the control of MultiSig wallet 3/4.

Contract monitoring

We use https://tenderly.co/ for monitoring any unusual activity

Strict checking external platforms contracts

Each strategy development includes not only implementing base functionality but analyze the farmable platform and the fetching of all critical metrics.

Possible attack vectors and defense

Flash loan and Arbitrage

Currently, Tetu's smart contracts are not eligible for this kind of attack.

Our vaults have whitelist protection for deposit operations.

This makes the likelihood of any type of attack involving asset manipulation impossible.

Re-Entrancy

Currently, Tetu's smart contracts are not eligible for this kind of attack.

In case we use untrusted external calls, OpenZappelin best practive protection will be implemented.

Arithmetic Over/Under Flows

All math operations use OpenZappelin library SafeMath.

Functions visibilities

All critical functions checked with unit testing for unavailability for use on non-governance addresses.

Race conditions / Front running

User's assets are not eligible for this kind of attack in our contracts.

However, reward selling, theoretically, can be target of front running from sandwich bots.

For this reason, we use secured RPC providers like https://taichi.network/

And wrap our calls to other contracts for improve the protection of smart contracts' actions against front running.

Denial Of Service (DOS)

Currently, we are not eligible for this kind of attack.

We don't use any loops with external changeable arrays.

External calls have no way to provide DoS for our contracts.

Any new integrations will be checked for this kind of behavior.

Any ownership changes in our contracts have unit tests and can't lose control unexpectedly.

Our contracts are under the control of MultiSig wallet and any operations will be double-checked with Tetu team.

Floating Points and Numerical Precision

Any calculations triple-checked with different numbers and have 100% test coverage

Timestamp Dependence

We do not have any calculations that are possible to get additional money with logic based on block timestamp.

Other Possible Contract Weakness

Other possible attack vectors are too rare, out of date, or obviously covered with unit tests and static analyzers.

https://swcregistry.io/

Max Supply: 1 billion tokens

No more than 1 billion TETU tokens will ever be brought into existence.

Minting period: 4 years

All TETU supply will be minted over 4 years, the minting period will end in August 2025.

• 70% of all weekly minted TETU goes for rewards initiatives.

• 30% of weekly minted TETU will be immediately available on the multisig contract.

Emission Schedule

This graph shows the total token supply (total number of existing tokens) during the distributing period

As a result, 70% was bridged to the mainnet and locked in an immutable contract with a 6-month cliff (delay) and a 12-month distribution period using a linear formula.

The remaining 30% stayed on Polygon and were locked in a new immutable contract with a 24-month distribution period also using a linear formula.

Polygon

Binance Smart Chain

Ethereum

Base

Polygon zkEVM

Tetu has a Bug Bounty Program by Immunefi that aims to increase the security of the protocol's smart contracts by offering rewards in TETU to white hat hackers and users who identify weaknesses and demonstrate them with a PoC.

Check the scope and rules of on Immunefi.

These changes were made since version 1.5.0 and deployed during March-April 2022

Huge changes were made for moving OpenZappeling contracts to a local directory and implementing ControllableV2 for base contracts. These changes were needed for cheaper gas usage on ethereum.

Base contracts

SlotsLib

A solution for managing contracts slots directly using byte32

TetuProxyControlled

Added additional protection. Now able to set implementation only with Controllable inheritance.

TetuProxyGov

The same controllable protection.

Announcer

Adopted for ControllableV2

Bookkeeper

Adopted for ControllableV2. Removed SafeMath.

Controllable

Replace OZ lib with a local file.

Controller

Adopted for ControllableV2.

ForwarderV2

Adopted for ControllableV2. OZ libs moved to local. Implemented temporally shortcut for BAL liquidation through Balancer pool.

FundKeeper

Adopted for ControllableV2. OZ libs moved to local.

VaultController

Adopted for ControllableV2. OZ libs moved to local.

ProxyStrategyBase

Added setBuyBackRatio

StrategyBase

OZ libs moved to local. Removed SafeMath.

Strategies

Minor changes for all strategies - moved OZ libs to local, rename some variables, removed SafeMath. Changed buyback ratio for some strategies.

BalStaking

A new solution for cross-chain farming ve tokens.

MarketStrategy

A solution for decompound supply profit for market.xyz

AMB strategy

Moved all contracts to proxies. Fixed some issues.

MB Strategy

Strategy for farming any assets on QiDAO. A part of AMB logic (without AAVE pipe)

tetuMESH is a liquid staking product. Through tetuMESH it is possible to participate in MESH staking obtaining the benefits of locking MESH for the maximum period. By minting tetuMESH the MESH will be locked in Tetu practically forever. But it is possible to sell tetuMESH on .

In the same way it is possible to buy tetuMESH directly instead of depositing MESH, this option becomes more attractive when there is a discount on the price of tetuMESH. You can learn more about Meshswap in the .

There are two MESH strategies available in Tetu, by 1:1 tetuMESH or . To obtain the tetuMESH-MESH LP it is necessary to deposit it on . There is a step by step of how to deposit tetuMESH-MESH LP on the page.

Benefits of liquid staking

• Earnings based on maximum Meshswap locking period.

• MESH staking rewards, airdrop token rewards, pool transaction fee rewards, and ecopot token rewards with 8x efficiency.

• Exit Liquidity

veTETU is a non-fungible token that serves as the foundation of TETU V2, an improved version of the TETU platform. It is designed to improve capital efficiency, liquidity, and asset management within the TETU ecosystem.

veTETU has the following characteristics:

• It's non-transferable: it cannot be transferred or exchanged between different users or accounts. This ensures that the asset remains under the control of the original owner and cannot be used for illicit or unauthorized purposes. Also, it allows for fair locking of assets, as it eliminates the possibility of prematurely unlocking them through the sale of NFTs.;

• It's lock period range from 1 to 16 weeks: it provides more flexibility and control over the tokens;

• The voting power of veTETU decreases linearly during the lock period;

• Rewards and a vote weights system: The rewards and vote weights for the asset depend on the power, meaning that the more powerful the asset is, the greater the rewards and vote weights will be. This is designed to incentivize users to acquire more veTETU assets and/or extend the lock-up period.

veTETU voting power determines the rewards and vote weights on the TETU platform. Voting power can be increased by extending the lock time or increasing the locked amount.

You can find the information on how to get veTETU in our .

If you own one or more veTETU tokens, there are two options to manage them: Merging and Splitting. The merging feature allows you to combine two veTETU tokens into one. On the other hand, the splitting feature allows you to divide a single veTETU token into two separate NFTs. Instructions on how to use these features can be found in the mentioned earlier.

Profit Share

veTETU still maintains the Profit Share properties of the Tetu Platform, receiving a share of Tetu's profits. The percentage of profit distributed to veTETU holders is called the PS ratio, and it is decided by the veTETU holders themselves through DAO voting. Currently, the PS ratio is 10%.

tetuBAL

The veTETU token governs the tetuBAL token within the 20WETH80BAL-tetuBAL LP. However, your influence over tetuBAL is not solely determined by your veTETU voting power. It is also influenced by the token ratio of tetuBAL to other tokens within the LP and the underlying bpt token for with veTETU.

veBal Mainnet voting address -

veTETU voting power

The calculation of total voting power is dynamic and subject to real-time changes. The total supply of tokens varies continuously, making it challenging to determine an exact figure. To address this, a snapshot is taken at a specific block height during each voting round, fixing the voting power for that round. Consequently, the voting power fluctuates with each new voting round.

Consider the provided screenshot as an example. The current round was snapshot at block height 40355031. As depicted in the numbers, the total supply is different because it evolves in real-time, particularly as the veTETU expiration date approaches, resulting in voting power decay. When you lock BPT tokens into veTETU, the user interface displays your voting power and its percentage relative to the entire pool.

Please note that your voting power is calculated based on the BPT tokens and not the individual TETU tokens. To illustrate this, let's examine two scenarios:

1. Locking TETU (for illustrative purposes, as TETU alone cannot be locked or staked).

2. Locking TETU-USDC BPT tokens.

In the case of locking 1 TETU for the maximum lock period, the user will receive 1 veTETU. However, when locking LP tokens, the reference is the LP tokens themselves, which contain both TETU and USDC.

For instance, let's assume locking 1000 TETU for the maximum lock period results in 1000 veTETU. If 1 LP token comprises 1000 TETU and 100 USDC, according to the veTETU power rate of 25%, it will provide 250 veTETU.

Now, suppose the TETU price drops, and the locked LP token represents 2000 TETU and 50 USDC. Despite the price decrease, the 1 LP token will still generate 250 veTETU at the maximum lock period. Therefore, veTETU remains unaffected, maintaining the same voting power even in the event of price fluctuations.

Regarding tetuBAL power:

• veTETU governs tetuBAL within the 20WETH80BAL-tetuBAL LP.

• Your veTETU voting power does not solely determine your tetuBAL power. It also depends on the proportion of tetuBAL within the LP compared to the amount outside the LP.

The Tetu protocol structure is build in a way to provide a small exposure to the real world economy. 10% of all farmed rewards go to the Investment Fund. Profits from real world assets investments will be distributed to veTETU holders.

Investment Fund Advantages

The objective of the investment fund is to provide sufficient integration with the real world economy, through this integration it will be possible to obtain some advantages:

• Diversification and exposure to real economy assets.

• A direct financial flow between Defi and the real economy.

• Strategic advantage for mass adoption of Crypto and Defi.

Exposure

The Investment Fund can obtain this exposure to real world economy through direct investment in these real assets or even through synthetic assets.

Sectors

The investment fund can invest in various sectors, real estate, mining, energy, technology, stocks and commodities. There is no pre-established investment scope for the investment fund and this generates high flexibility, the essential thing is that investments carry out an asset allocation with exposure to the real economy.

veTETU

Profits made from investments in the real economy will eventually be distributed in the future to veTETU holders.

This is the place to store deprecated and outdated content. These files have been grouped together for reference purposes, providing a resource for historical information that may no longer be actively used. Despite their outdated nature, the files within the Archive page are still accessible and can be consulted as needed.

The Second Stage is one of Tetu's main goals.

Tetu is beyond a blockchain protocol for swapping and yield farming, and the protocol is on the verge of achieving what no blockchain protocol has achieved before by bringing real-life use cases and investment strategies to the DeFi ecosystem.

To this end, Tetu would be one of the very few protocols in the crypto ecosystem that would benefit its users through exposure to real estate investments in different tiers. Tetu investment packages would be unique and pioneer a new wave of blockchain investing.

With the transparency and security of the blockchain, Tetu would ensure that users are fully aware of how their assets are utilized. The second stage would revamp investment systems and make it possible for anyone, anywhere in the world, to earn passive income from the DeFi ecosystem x Real-world. Tetu will champion the integration of the DeFi ecosystem with the real estate industry, the petroleum industry, and other veteran industries with a transparent platform and packages.

With time, we should replace profit from DeFi projects with profit from real investments. It can be done with conceptions of Platforms & Packages.

PLATFORM

Tetu’s platform will have the following features to ensure users earn maximum profits while securing their hard-earned funds.

• Territory

• Security

• Personal Service

• Initial Amount of Packages as Proof of Concept

The Platform will have a legal organization in whatever location or territory it is set up. It would be fully registered, recognized, and the organization would be able to spend in a blockchain currency, likely Ethereum. The organization would be able to hold cryptocurrency and comply with the local regulations for establishing businesses.

All the assets under the platform's control would be 100% insured since the platform’s goal is to maintain security and minimize risks while maximizing profits for investors. The owner of the insurance would be the “Platform implementer,” which is a smart contract with decentralized governance that would be able to create the platform for Tetu’s second stage.

The platform would operate solely on blockchain currencies (crypto) for transparency and traceability. Thus, all salary, service, and tax payments would be disbursed via cryptocurrencies, with an immutable receipt on the blockchain.

In some situations where payment via cryptocurrency is practically impossible, the platform would promptly provide all documents for such transactions, and these records would be set up on-chain. Tetu will help investors achieve a level of transparency that no organization has seen before. The platform’s documentation, especially as regards financial transactions which would be recorded on-chain, include the following:

• Package Capacity

• Package Cost

• Package Profit Estimation

• Current Package Profit

• Package Creation Time

Also, any profit made would be immediately distributed to:

• The Platform Implementer

• The Package Creator

• Internal Fee Fund

PLATFORM IMPLEMENTER

Tetu will have a platform implementer, that is, a smart contract with decentralized governance that will foster transparency in Tetu’s ecosystem. The Platform implementer will provide details about the following:

• Platform final cost

• Weekly service cost

• Estimations about weekly Package profit

• Time of platform's creation

• Risk Index

• Insurance information

• Information about organization

• Information about Location

• Information about all required external services (such as a technic seller, power seller, employee vendor, and others.)

The implementer organization would have a multi-sig wallet with well-known public persons. All funds belonging to the organization would be recorded on-chain, and the multi-sig wallet would ensure that assets are controlled in a decentralized way. Renowned blockchain security companies would also audit the platform.

PACKAGE

The Platform implementer will provide accurate information about the platform’s investment packages. The packages would have various sizes that would suit users of different classes. Package buyers can choose from the best packages and provide money for the best option at the current time if they have enough money. Information supplied by the implementer includes:

• Time for implementation

• Risk index

• Profit estimation

RISKS

Risks are a part of every investment. But the good news is that all risks on the platform would be covered by insurance. The insurance would cover hazards like fire outbreaks, floods, and other natural disasters that could affect real estate facilities. The platform would also have insurance covering smart contract hacks and rug pull risks. Tetu’s primary objective is to keep users’ funds safe while offering decentralized investment options.

Timelock announces

Checking the time lock schedule can be very useful as critical actions are protected by time lock. Time locks are a tool created to increase user security and reduce the likelihood that their funds will be affected by malicious people before they have a chance to withdraw funds from the protocol. To provide even greater security to users, Tetu has a 48-hour timelock on all critical contracts. In the Time Lock announce article you can learn how to check the Time Lock announce and its schedule.

Emergency Withdraw

At some point it may be in the user's interest to carry out an emergency withdraw to make sure the funds are safe as quickly as possible, this is done on-chain and there is no need to interact with the Tetu platform to perform this action. You can learn how to perform emergency withdraw in the dedicated article.

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.

Standard

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.

Auto compound on Polygon

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.

Auto compound on Fantom

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.

xTETU rewards on Fantom

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.

Bridge using Movr

Bridge using Multichain

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.

Profit Destination ratio of Tetu Buybacks

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.

Profit Share earnings from fees

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.

Profit Share performance

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 dxTETU 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.

TetuSwap fees fulfill Tetu's fundamental vision focused on revenue, generation of income and value of yield. All trading fees across TetuSwap are 0.10%.

• 10% of the fees are auto compounded back into the underlying LP vault

• 90% of fees get divided further by the Profit Share PS ratio and Profit Destination ratio into TETU buybacks, Protocol Owned Liquidity, and the Investment fund.

Certik

Certik performed the audit of Tetu's new products, TetuSwap and Pawnshop. With this audit, Tetu continues to reinforce its commitment to prioritizing safety.

Tetu is eligible for all Certik recommendations and 62% of the 13 findings have been resolved.

Although all 3 major findings show the status of Unresolved in the audit report, all major findings are protected by a 48h time lock and the weakness of single point of failure is avoided through a multi signature wallet. You can access the Certik audit:

PeckShield

Tetu was audited by PeckShield, Tetu's second audit, and no high risk issues were found. All issues were addressed by the team. PeckShield's conclusion was as follows:

"In this audit, we have analyzed the Tetu protocol design and implementation. Tetu is a decentralized yield aggregator that allows users to deposit into a decentralized liquidity platform and earn rewards in return. During the audit, we notice that the current code base is well organized and those identified issues are promptly confirmed and fixed. Meanwhile, we need to emphasize that smart contracts as a whole are still in an early, but exciting stage of development." You can access the PeckShield audit:

Tetu's new product, Tetu v2, was also audited by PeckShield and found to be secure. According to the auditor:

"Based on Tetu, the audited Tetu v2 introduces some new features, which enables protocol users to participate in governance with veTETU, improves the TetuVault with new deposit/withdraw fees, and introduces new SplitterV2 with auto-rebalance logic adopted to multiple farming strategies, etc. During the audit, we notice that the current code base is well organized and those identified issues are promptly confirmed and fixed. Meanwhile, we need to emphasize that smart contracts as a whole are still in an early, but exciting stage of development."

DefiYield

Tetu was audited by DeFiYield. Most of critical issues were solved and DeFiYield's conclusion was as follows: "The audited contracts are the main part of the Tetu.io ecosystem. Contracts are well written and commented with good readability. The Tetu team did a lot of work to remove all previously found vulnerabilities, including critical centralization issues. Timelock with announcement logic was provided for every critical contract change. It’s important to point out that the Controller contract still features certain centralization degree: the functions mintAndDistribute() and controllerTokenMove() enable the contract owner to have control over the protocol’s token distribution, but with the timelock delay. We are confident that any token distribution should be fully decentralized. However, there are no critical issues left, and users have an ability to monitor all announcements related to the token transfers. No suspicious functions were revealed during the auditing."

You can access the DefiYield audit:

dxTETU

The Diamond Vault - also known as dxTETU in TETU's decentralized application - is the platform's 90-day locked vault for xTETU. TETU developed dxTETU to encourage long-term investment and help decrease price volatility while also rewarding investors and incentivizing them to participate in Tetu's governance.

Investors seeking to support TETU's long-term growth and stability while also potentially receiving significantly higher returns on their xTETU should consider dxTETU. In exchange for "locking up" xTETU for 90 days and facing significant penalties for premature withdrawals, dxTETU holders have received historically much higher xTETU APRs, governance rights, as well as emission incentives. These emission incentives include receiving additional xTETU pursuant to the .

All investors in the Diamond Vault voted on dxTETU's locking period and the result was 90 days.

Early Exit Penalties

Investors do have the option of withdrawing locked funds prior to the expiration of 90 days. However, such withdrawals face potentially steep penalties. Regardless of when the early withdrawal is done, a depositor will automatically receive 50% of the deposited funds. Next, investors will receive (50% of the remaining balance) multiplied by (the number of days since their first deposit or last withdrawal divided by 90 days). As an example:

• Investor A deposits 1000 xTETU into dxTETU on January 1.

• Investor A, hoping to capitalize on a price spike, elects to make an early withdrawal 10 days later.

• Investor A will first receive 50% of the deposited funds, or 500 xTETU.

• Investor A then receives (50% of the remaining balance, or 50% of the remaining 500 xTETU) x (10 days/90 days), which is (250 xTETU) x (10/90), or 27.7777778 xTETU.

In the above example, Investor A would receive 527.7777778 xTETU even though they deposited 1000 xTETU into The Diamond Vault just 10 days earlier.

Investors expressly consent to these early withdrawal penalties before confirming their dxTETU deposit when they receive and must agree to the following advisal:

• Warning! Any funds deposited into dxTETU are locked for 90 days. While you will be able to withdraw funds prior to the 90-day lock period expiring, you will only receive 50% of your deposited funds plus (50% of remaining funds) multiplied by (days since first deposit or last withdrawal divided by 90 days). Any early withdrawal will lead to an automatic loss of at least part of your funds. The only way to avoid not losing any deposited funds is to wait the full 90-day lock period.

More Yield for xTETU

Through dxTETU it is possible to lock your xTETU tokens and earn even more returns through:

• Early exit penalties.

• Emission incentives.

The locking mechanism provides a dynamic that dxTETU holders can have the opportunity to earn an even greater return relative to early exit penalties from other users.

All early exit penalties are paid to all other active Diamond Vault depositors proportionate to their dxTETU holdings. dxTETU investors, therefore, have the ability to not only earn significantly higher APR but also additional rewards from premature withdrawals.

Using dxTETU

When using dxTETU it is important to pay attention to some additional features of the Diamond Vault.

• dxTETU can't be transferred to avoid tricks that ignore the mechanics of the vesting period.

• additional deposits does not reset the lock duration countdown. Only withdrawals reset the timer to 90 days.

Governance

The locking effect is also leveraged in protocol governance so that only dxTETU holders can govern it. Having to meet the 90-day locking period for no early exit penalties makes it more unlikely for users to manipulate governance votes through large TETU purchases.

Reflection Voting

dxTETU holders receive the voting rights that liquid staked tokens like tetuQI or tetuBAL provide, giving the ability to vote in their own governance activities like proposals or gauge weights for their native emissions.

Resources

TetuSwap was built based on an Uniswap fork with few changes to be able to integrate SmartVaults to SwapPairs. A strong fundamental characteristic of TetuSwap is to provide excellent capital efficiency for traders and liquidity providers through intelligent and automated allocation of resources.

With TetuSwap users can trade paying relatively low fees, currently 0.10%. Other exchanges on the market generally charge a standard fee of between 0.25% ~ 0.30% per transaction. Trading costs on TetuSwap are considerably lower.

Trading costs are considerably lower and this creates a favorable atmosphere to attract users willing to trade, even with a low trading fee, TetuSwap can be very attractive for Liquidity Providers who are interested in serving the trading volume available on TetuSwap . The competitive 0.10% trading fee suggests that Liquidity Providers will have an attractive gain in scale and large trading volume on their LP position.

When swaps occur, TetuSwap automatically deposits or withdraws from Yield Farming vaults the exact amount of assets needed to execute the swap.

Through the automatic asset allocation of TetuSwap that deposits assets in Tetu to yield farming, Liquidity Providers obtain as a result the reduction of idleness and an increase in the utilization of assets.

Audit

TetuSwap smart contracts have been audited by Certik to ensure greater security and confidence when using TetuSwap.

Resources

TetuSwap article on .

Distribution structure

The distribution of TETU through emissions will last for 4 years and during that emissions period the LP vaults will be incentivized.

This distribution of emissions rewards constantly takes place through the automatic rewards rebalancing system, in this system reward allocation is performed automatically daily according to the KPI of each vault, so if the profitability of a vault decreases, the TETU rewards distributed to the vault will decrease accordingly.

According to Tetu 70% of TETU emissions will be distributed to users through Yield Farming. As previously stated, it will take 4 years for the entire TETU supply to be fully minted.

Automatic Rewards Rebalancing System

The behavior of the automatic rewards rebalancing system is influenced by rewards of external projects, money deposited in the vault, and vault performance. If the farming performance of a project's target strategy is negatively affected there will be an automatic economic inclination to reduce the rewards allocated to it. The TETU buyback capacity of each vault also influences the xTETU distribution so the more TETU the vault is able to buyback, the more rewards from emissions will be allocated to the vault.

There is an automatic economic inclination to provide greater incentives to vaults with a higher TETU buyback performance and reduce the xTETU distribution allocation for vaults that had poor TETU buyback performance. Refueling of rewards happens daily and doHardWork calls add some rewards as well.

Manual Adjustments

It is possible to make manual adjustments in the automatic rewards rebalancing system. This function is useful to prevent a self reinforced unbalance.

TETU Liquidity Incentives

The liquidity level of TETU in the market also suggests an amount of xTETU rewards to be allocated to TETU LP so that there is sufficient liquidity for TETU trading. Liquidity is important for investors to be able to build a TETU position effectively without having a price impact too high and losing money on slippage costs. Liquidity is also important for TETU Yield Farming profits to be realized.

Resources

Liquidity Providing article on .

Auto Compound article on .

One of Tetu's characteristics is to direct a portion of platform revenue towards Protocol Owned Liquidity. This feature was brought to Tetu by the Tetu process as a way to help bootstrap platform liquidity. The Profit Destination ratio dictates that 45% of the platform revenue is allocated to Protocol Owned Liquidity.

The liquidity generation performance of the protocol was excellent, within a few weeks after the DAO voting the protocol had already accumulated a position of almost $30K of liquidity. What was most surprising about this liquidity generation measure is that it is a completely self-sustaining solution and the liquidity generation capacity of the Tetu protocol is completely linked to the productivity of TVL at work.

The liquidity problem

Low liquidity or limited liquidity was not a problem unique to Tetu. Many protocols face or have already gone through the challenge of generating liquidity, the most used solution is to incentivize the liquidity of native tokens with a high emission. While this solution is very popular and has the potential to attract liquidity to the protocol's native tokens in the short term, in the long term it poses problems as token emissions are reduced and the incentives to provide liquidity become less and less over time. With enough time, users find themselves in a situation where it is no longer attractive to provide liquidity and low liquidity or limited liquidity is again a problem for the protocol.

An innovative solution

As Tetu's liquidity generation is associated with TVL at Work's yield farming productivity it is expected that Tetu's liquidity will become even greater as Tetu's TVL increases. A very interesting feature of this liquidity generation system is that if TVL remains at flat levels, liquidity continues to be generated, if a lot of TVL is deposited in the Tetu protocol, even more liquidity is generated, and there are situations where TVL at work fluctuates downwards but the TETU buyback capacity is drastically increased due to the fluctuation of the TETU price, producing a huge liquidity generation even with a lower TVL at work.

To check the protocol's TETU liquidity funds look for Fund Keeper LP Balance on the Stats page.

Fantom

All profits from Tetu on Fantom are used to acquire Protocol Owned Liquidity. Profits on Fantom come from the following sources:

• 10% single asset auto compound fees and Beethoven.

• 1% auto compound fees from LP assets.

• 70% of profits from Standard Vaults to Protocol Owned Liquidity.

Additional value to TETU

The effect of 45% of Tetu's profits being converted into protocol owned liquidity creates buying pressure and a growing position of TETU-USDC LP that works as if it were a productive burn as it removes TETU tokens from the market, serves Tetu users through additional liquidity, profit over time through trading fees and represent assets backing the TETU token, increasing its value.

Resources

These changes were made since version 1.1.0 and deployed during September-October 2021

The most sensitive upgrade for vaults is a milestone for upping the version.

Compatability for old strategies saved, mass strategy update not require.

Common changes

Strategies now have an additional interface for computing KPI. All third-party interfaces were moved. The logic for computation weekly rewards moved to RewardCalculator

Added ArrayLib

Added AutoRewarder and RewardCalculator

Infrastructure folders rearranged

New strategies: Curve / Iron Lending / Cafe / Cosmic / Dino / Hermes / Iron Swap

The first version of TetuPawnshop contract

Bookkeeper

Added logic for register rewards distribution process. This logic requires for KPI calculation

Gas optimized removing from arrays regarding auditors recommendation

Controller

Check controller when register vault+strategy pair

FeeRewardForwarder

Made contract able to deploy with Proxy. Added storage

Adjust revert messages

Added logic for split PS profit to TETU liquidity

Changed notifing vaults with function notifyRewardWithoutPeriodChange

Added simple public function for liquidating assets

Adjusted liquidation process for able to handle independent amounts

VaultController

Added changePpfsDecreasePermissions for able to work with folding strategies

SmartVault

Revert messages improved

Lock mechanic for DiamondVault

Settings for allow ppfsDecrease for HardWork

Register reward distribution in Bookkeeper

NotifyHelper

Added logic for DiamondVault distribution

These changes were made since version 1.6.0 and deployed during April-May 2022

We moved all strategies to dedicated repositories:

SmartVault 1.10.2-> 1.10.3

Added function claimFor(). It requires approval for the caller.

Few minor changes in PriceCalculator, Autorewarder.

New contract DepositHelper as a central entry point for all vaults.

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.

Resources

xtetuQi on Medium

Folding strategies is an innovative Yield farming strategy. Assets in this strategy are deposited on lending platforms and used as collateral to borrow more of the same asset and deposit again on the same platform to borrow more assets until reaching an optimal limit.

It is currently normal for lending platforms to offer incentives for users to both deposit assets and make deposits. Interacting with lending platforms is a very safe way to be rewarded with crypto assets distributed through incentives. Folding strategies maximize this yield farming capability by multiplying the exposure of assets to the lending platform's incentives.

The deposit and borrow loop can be repeated up to 20 times. The loop is only performed if the strategy's profitability is positive, if the scenario presents a situation where the folding strategy's profitability is not positive, the strategy will pay all borrows and only keep the assets deposited in the lending platform.

Unfolding

Folding strategies are able to unfolding the borrow and supply loops. The unfolding process takes place according to market conditions. The dynamics of lending and borrowing rates can eventually lead to low profitability, in this cases the folding strategy will respond by reducing the amount of borrow and supply loops. This behavior in the strategy can happen for example when borrowing rates become too high.

Risks

There is no risk of liquidation because the folding strategy supply the same asset that borrows, thus the assets of the folding strategy are not exposed to market price fluctuations. In case of low liquidity in the lending platform, the user will not be able to withdraw his assets from the folding strategy vaults. These events are rare, but they are not necessarily bad for users either since in high asset utilization scenarios on lending platforms interest rates rise significantly forcing users to pay borrowed money and incentivizing users to supply assets on the platform to increase liquidity.

Performance and incentives

The performance and incentives of the folding strategies can be checked by clicking on "info" inside the vault. Strategies earned TETU shows how much TETU the strategy bought back from the market. APR Rewards show xTETU rewards tokens available to vault users.

Single Assets

Folding strategies are based on single assets and can be a very effective solution for Yield Farming without impermanent loss. To find the folding strategies vaults in Tetu search for AAVE or Iron Lending in Tetu's search bar.

Resources

Iron Folding Strategies article on Medium.

On the main website, you can see a list of vaults with APR numbers

Tetu has three types of vaults:

Vaults with 100% buybacks and pure TETU rewards

These types of vaults use all profit for buyback TETU tokens.

Users get rewards only in TETU tokens.

However sometimes you can see a low Autocompound APR - it is a specific fluctuation of some strategies and should not be count.

APR formula:

Where

R: reward amount in USD = rewardsForFullPeriodUsd * periodRate

rewardsForFullPeriodUsd = vault.rewardRateForToken() * vault.duration() * Price

periodRate = (vault.periodFinishForToken() - now) / vault.duration()

TVL - Total Value Locked in USD

vault.underlyingBalanceWithInvestment() * underlyingPrice

D - reward duration in days

vault.duration() / (60 * 60 * 24)

Source https://www.investopedia.com/terms/a/apr.asp

Vaults with 99% autocompound

These types of vaults are marked with specific sign.

They use 99% of profit to buy underlying assets and redeposit it into the vault to increase value with time.

For understanding how it works you should know the mechanics of the Vault.

When you deposit into the Vault you get xToken - it is an interest-bearing token for this vault and a ticket for getting deposited assets back. xTETU is one of them but each Vault has an individual xToken (xNAME_OF_VAULT)

Each Vault has a Price Per Full Share (PPFS) - it is a ratio between underlying asset and xToken

When you deposit an asset you get xToken in this proportion.

For example, if you deposit 1000 USDC with PPFS 1.5 you will get ~666 xUSDC

If you withdraw your assets with 666 xUSDC and PPFS increased to 1.8 you will get ~1198 USDC

APR formula includes some period of work

We are getting two points of time

PPFSChange = endPPFS - startPPFS

Time = endTime - startTime

​On the UI we are showing an average value of APRs for the last 7 days (with 1 day step)

Autocompounded vaults can have claimable TETU rewards - they will be shown together

Vaults with underlying vaults

Some vaults uses other vaults as underlying.

We are showing underlying vaults APR as additional income.

It is a dedicated calculation - the main Vault can have individual autocompound APR + rewards APR

Vault Description

The description and income source of each vault can be checked by hovering the mouse over the APY.

https://github.com/tetu-io/tetu-contracts/compare/release-1.2.0...release-1.3.0

These changes were made since version 1.2.0 and deployed during October-November 2021

Big work was made for adoption contracts and tests for multi-chain.

The Github workflow now is running on Fantom by default.

It reduced run tests time from 90min to 17 minutes.

Unfortunately, we should disable coverage reporting for infrastructure and strategies.

Tests still run but on Codcove you will see only base contracts.

For full coverage report need to edit .solcover.js and run npm run coverage

Base Contracts

Bookkeeper 1.1.1 -> 1.1.2

• Adjusted revert messages

• Allow call registerFundKeeperEarned() for strategies

• registerPpfsChange() deprecated, this metric useless

Controller 1.1.0 -> 1.2.0

• Add pure reward consumers - they excluded from reward vesting mechanic. It needs for TetuSwap pairs and partnerships

FeeRewardForwarder -> ForwarderV2

Build from scratch a new forwarder contract with new liquidation logic.

Now we are doing fewer steps for distribution and able to liquidate fewer rewards without uniswap errors

Routes managing now clear and simple

Old contract removed

VaultController 1.1.0 -> 1.2.0

• Add toInvest, rebalance and disableLocks settings

Folding strategies

Create a new base contract with universal logic for any folding implementation.

Now we are able to build new folding strategies fast and use universal tests to keep safety on the highest possible level

Iron strategy was refactored accordingly but was not deployed (and I guess will not)

StrategyBase

• Add the possibility to pause a strategy without withdrawing funds.

• Add additional check on withdrawing process - now we will not able to withdraw to vault less than 90% of the expected amount

• Add silent liquidation process for Autocompound strategies - we have very little rewards for distributing and are not able to liquidate it in the most cases

• Add universal autocompound functions for single tokens and uniswap-like LP tokens

New strategies:

• AAVE

• Curve

• DinoPool

• Geist

• SpookySwap

• TetuSwap (for internal purposes)

SmartVault 1.3.1 -> 1.5.1

• Revert messages removed/adjusted for keep contract size in 24kb

• updateReward modifier/function was optimized

• Add toInvest settings - we should keep some amount in vaults for cheaper swaps

• Add disableLock() for disabling not initiated lock mechanic

• Call invest() in doHardWork()

• Allow moving locked tokens from controller

Infrastructure Contracts

LiquidityBalancer 1.0.0 -> 1.1.0

• Revert messages adjusting

• Add moveLiquidity() function for migration process

• Improve adding liquidity

PriceCalculator 1.2.1 -> 1.3.1

• Add Curve tokens price calculation

AutoRewarder 1.0.0 -> 1.1.1

• Make contract proxy

• Create function for storing info off-chain

• Some fixes

RewardCalculator 1.0.0 - 1.4.1

• As a result of many changes make a decision to calculate profitability based on earned TETU as the clearest and simple process.

TetuSwap

The first version of contracts

• TetuSwap pair

• TetuSwap factory

• TetuSwap router

• TetuSwap library

• Some internal contracts