✨ | Yield Tokens

Introduction

Yields tokens are synthetic spot positions that are created by providing liquidity in a Concentrated Liquidity Automated Market Maker (CLAMM) and using the GammaPools to hedge the Impermanent Loss. You can think of it as a basis trade like Ethena but using any AMM & token. There are no oracle requirements and every position is fully collateralized. Yield tokens like gETH are fully composable and accrue value over time by increasing in price. The yield is from DEX fees and represents the true risk free interest rate for a token.

Deposits & Withdrawals

Mints and burns of the yield token are processed every 24h in each vault. You will have to manually claim your yield token or burned position after the 24 window has finished. You can monitor the time in the queue by checking the timer on the top right of the swap section.

Strategy Details

You can see the positions of the vault contract (the CLAMM LP position, hedge position, etc) by clicking the chart in the top right of the main section.

You can then see the value in the LP position and PnL of the hedge. There are also links to the relevant pools and yield token smart contract.

Contract & Strategy Explained

For a more detailed explanation, please review the Strategy & Contract Overview.