Yeti Launched on Avalanche
It was announced on April 16 that Yeti Finance, a new, Avalanche-native borrowing mechanism, has gone online.
Yeti Finance had a great start, with a total value of $500 million locked in during the first 24 hours of operation.
Yeti Finance allows users to borrow up to 11x the value of their LP tokens, staked assets, and base assets, as well as 21x the value of their yield-bearing stablecoins, all at a cost of 0 percent.
This integration broadens the lending landscape for Avalanche by allowing users to borrow against assets that were previously uncollateralizable.Through the use of cross-margining, Yeti Finance users are able to borrow against their whole portfolio, which reduces the risk of liquidation as well as the quantity of collateral necessary.
While borrowing money from Yeti Finance, users can continue to earn farming rewards according on the collateral they have deposited. The rewards are automatically compounded in order to capture the maximum amount of yield.
Yeti’s native stablecoin, the YUSD, is created by borrowers depositing collateral in “troves.” To maintain its liquidity at $1, the YUSD employs a combination of hard-peg methods, decentralization, and liquidity incentives.
At the time of writing, YUSD had already amassed more than $300,000,000 in Curve Liquidity, mag it the second most liquid stablecoin pool on Avalanche, trailing only av3CRV in terms of liquidity.
YUSD can be staked in Yeti Finance’s stability pool to earn YETI rewards, or it can be traded for other stablecoins on Curve to fund the acquisition of new cryptocurrencies.
Avalanche’s investment in Yeti
The Avalanche Foundation has made a strategic investment in Yeti Finance, which is a financial services company.
Yeti Finance’s revolutionary risk methods allow users to borrow at the lowest possible minimum collateral ratios, allowing them to access large amounts of cash.
The protocol (which is not tied to Yeti Swap) will also bring billions of dollars in additional liquidity to Avalanche through improved capital efficiency, in addition to bringing an unique new product to market.
It is possible for the protocol to handle tens of billions of dollars in deposited collateral.Trader Joe, BENQI, Aave, Curve, and Colony Lab are some of the Avalanche protocols with which the Yeti Finance team has formed agreements and integrated its systems with.
Yeti Finance intends to collaborate with Avalanche protocols such as Platypus in the future to offer borrowing against deposited stablecoins, borrowing against aUST (deposited UST in Anchor), Benqi’s sAVAX, and GMX assets, as well as borrowing against deposited UST in Anchor.
Furthermore, Yeti Finance has committed more than $800,000 in thorough protocol security, including five smart contract audits, two economic analysis reports, and many independent peer reviews, among other things.
Among the security measures were auditing of the core borrowing protocol, a review of all ancillary systems (including vault tokens, collateral integrations, and oracles), and thousands of agent-based simulations of the protocol under various black swan events to ensure that the protocol was still operational.
And yeti Finance is working with Three Sigma Labs, an economic modeling and smart contract auditing company that is world-renowned for its work.
The stakeholders have agreed to work together for a period of 12 months to help strengthen the protocol’s economic and smart contract security.
What is Yeti Finance?
Yeti Finance is a next-gen decentralized borrowing protocol built on Avalanche.