The yield layer for shared security.
Native yield-streaming for the lowest cost of security.
How does yieldi work?
Staking
Users deposit native assets (ETH/BTC) into the Liquid Staking Protocol (LSP).
Yield Calculation
The AVS computes the user's share of the yield and sends it via the Inter-Blockchain Communication (IBC) protocol to THORChain at regular intervals.
Yield Distribution
THORChain swaps the yield to native assets and holds it in a yield collector module assigned to the staker's L1 address.
What Problem Does Yieldi Solve?
Yieldi addresses critical issues in the AVS ecosystem, enhancing price discovery and liquidity for AVS tokens.
By providing real yield in native assets (ETH/BTC), Yieldi incentivizes users to delegate their LSTs to AVS operators.
Because the yield is lower risk, and in an asset delivered to the user, removing friction, the cost of yield will be much lower. Thus AVS's will naturally prefer yield-streaming because it will require less inflation and they can transition to the fee regime faster, avoiding security gaps.
key components
- AVS: Supports yield streaming via an Axelar-like General Message Parsing Gateway Contract.
- IBC Channel: Maintains connectivity to THORChain.
- Liquidity Auction: Conducts auctions with incentives to correctly price and build liquidity.
- Yieldi Pools: Deploys AVS pools and processes inbound yield swaps to native ETH.
- THORChain: Supports Yield Accounts, allowing users to query balances, claim, and set auto-stream.
The Yield Venue for Shared Security