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Platform Economics and Staking Rewards

Collection of Platform Fees#

Platform fees are generated from its users when they interact with the platform in several events and transactions.

Minting Fee#

By minting youves tracker tokens, the platform deducts a one-time minting fee from the amount of tokens minted from the user wallet in tracker tokens. At the instance of minting, the amount of tracker tokens received in a user wallet is usually lower than what was minted because of the minting fee deducted.

Interest Rate#

The platform applies interest rates to the balances of minters tracker tokens. There is a liability interest rate/lending fee on the outstanding balances of minters. The minters pay the liability interest rate. The interest rates are ongoing fees or rewards, learn more here. The interest rate is currently being paid to either liquidity providers in yield generating swap pools or in savings pools.

When the liability and asset interest rates are annualised, the liability interest rate is roughly 1.00% higher than the asset interest rate. This difference is claimed by the platform on an ongoing basis.

Staking Rewards#

Minters can claim governance tokens (YOU tokens) for free based on their minting volume, or they can purchase them from the market.

Holders of the YOU governance token have the option to stake them.

Stakers of the YOU token are eligible to earn staking rewards from the platform, but if there are ever vaults that have a collateral ratio lower than 100%, the stability mechanism will be triggered. As a consequence, the stability mechanism involves locking up the YOU tokens in the staking pool, and using a necessary portion of YOU tokens to recapitalize the vaults up to the emergency level. Every second, the platform observes the recognised staking rewards vs. the number of staked YOU tokens. It then calculates the rewards per staked YOU token and allocates them accordingly.

These allocated staking rewards remain available to holders without expiry date and can be claimed at any point in time in the future.

The governance model is further described in section Governance.