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.

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)

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.

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:

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%.

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.

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 Meshswap.

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 documentation.

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

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.

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

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 https://polygonscan.com/address/0x7fc9e0aa043787bfad28e29632ada302c790ce33

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. You can learn more about veBAL

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

Voting rights on Balancer DAO proposals provided by veBAL are still preserved by Tetu, so that veTETU holders can vote and decide on Balancer proposals. In this way, tetuBAL users waive the right to vote on governance proposals in exchange for the benefits provided by the product, as a result veTETU token obtains an even greater value provided by the backing of veBAL assets permanently deposited in the Tetu ecosystem. veTETU holders can vote to direct veBAL votes from Tetu assets through reflect governance voting in Tetu snapshot.

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

Following the implementation of TIP-016, 20% of the veTETU voting power in the tetuBALPower contract was reduced. This amount of veTETU power will now be allocated for collecting bribes, which will subsequently be utilized for the buyback of tetuBAL tokens. The tetuBAL bought-back tokens are held by the address 0x6672a074b98a7585a8549356f97db029416849e

TIP-018

After TIP-018 was put into effect, changes to the tetuBAL bribes distribution system were implemented. This was necessitated by the significant complexity and high gas consumption of distributing bribes from all markets individually.

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

Every two weeks we are creating a reflection proposal. The proposal reflects Balancer's liquidity mining emissions. https://app.balancer.fi/#/ethereum/vebal

Participants in the proposal will eligible for rewards from:

• Hidden Hand bribes https://hiddenhand.finance/

• Warden quests https://app.warden.vote/

• Tetu community https://tetu.community/tetu-bal

A block for reflect proposal will be chosen in a range of blocks between the start date of the previous proposal (not the snapshot block!) and the current block. The reflect proposal is determined by the block with the highest amount of tetuBAL in the pool, and the selection of the reflection snapshot block works according to the snapshot script.

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

tetuBAL can be traded in the tetuBAL-BPT liquidity pool available on Polygon. In addition to exit liquidity, the pool can also be used as an option for the direct acquisition of tetuBAL. This feature can provide advantages for buying tetuBAL directly when tetuBAL is priced below the peg instead of minting tetuBAL by depositing the 80/20 BAL-WETH LP into tetuBAL. This will also provide opportunities to arbitrage as the stability of the peg fluctuates.

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

BalLocker - https://etherscan.io/address/0x9cC56Fa7734DA21aC88F6a816aF10C5b898596Ce

BalDepositor - https://etherscan.io/address/0xbb84098e47d217f51cb014f692eada1f2280a179

BalSender - https://polygonscan.com/address/0xBb84098e47d217f51cB014f692eada1F2280a179

Resources

tetuBAL Medium article Key Opinion Leader - veTetu

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

Providing Liquidity: Users can contribute to the liquidity pool, which primarily involves a pair of 80BAL-20WETH - tetuBAL. It's essential to note that the control of tetuBAL within this liquidity pool is exercised by veTETU holders.

Holding tetuBAL Tokens: Users who hold tetuBAL tokens in their wallets are granted the right to vote on proposals shared in time-to-vote and veTETU has no control over anything outside the LP.

Depositing into xtetuBAL: In this scenario, the TETU platform manages the voting process associated with tetuBAL tokens, thus maximizing value-per-vote. For this service, TETU takes a 5% fee, while the remaining 95% is distributed among all users who have contributed to the xtetuBAL vault.

Conclusion

xtetuBAL is a powerful yield optimization strategy designed for tetuBAL holders. By automatically allocating votes to the gauges with the highest bribes, it maximizes earnings and ensures the highest possible return on investment. To invest in xtetuBAL, please visit the following link https://app.tetu.io/vault/0x915e49f7cd8b2b5763759c23d9463a74d5b5c1d5