Pooling + Compound Interest
All Force "Yield Automation" strategies generate revenue by investing the asset a user deposits, into an "incentivized" financial market.
In the case of the ETH-USDC strategy, the "incentivized" financial market is SushiSwap, where yield is generated by:
Pooling Fees: Native APY generated by providing liquidity to SushiSwap's ETH-USDC AMM pool.
Compound Interest: Liquidating the SUSHI incentive rewards in exchange for ETH-USDC LP tokens, which is then reinvested into the user's original position.
After a user deposits SushiSwap's ETH-USDC LP tokens into the vault, the contract automatically mints and transfers xETH-USDC tokens into the user's wallet.
The xETH-USDC tokens can then be "staked" into the rewards pool, where the user can then benefit from additional token rewards in the form of xFORCE.
xFORCE are the interest-bearing version of FORCE. xFORCE yield is generated by a buy back mechanism outlined in the economics section.
To invest into the strategy, users deposit
Sushiswap ETH-USDC LP tokens into the vault contract.
Upon deposit, they are issued a share of the vault, represented by
xETH-USDC. These user's funds are then made available for investment according to the pre-defined "strategy" above.
User's are able to deposit their
xETH-USDC tokens into the "Rewards Pool" to receive an additional APY in xFORCE tokens.