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 platform's emissions schedule.

All investors in the Diamond Vault DAO proposal 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

Everyone is free to participate in the protocol governance discussions, which usually take place in Discord, however, in DAO voting proposals only dxTETU holders can vote.

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

An instructional article about dxTETU.

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.

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.

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 .

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.

Buy Pressure

Profit Destination ratio of Tetu Buybacks

• 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

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

Resources

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 .

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 .

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

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.

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

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.