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-USDT strategy, the "incentivized" financial market is SushiSwap, where yield is generated by:
- Pooling Fees: Native APY generated by providing liquidity to SushiSwap's ETH-USDT AMM pool..
- Compound Interest: Liquidating the SUSHI incentive rewards in exchange for ETH-USDT LP tokens, which is then reinvested into the user's original position.
After a user deposits SushiSwap's ETH-USDT LP tokens into the vault, the contract automatically mints and transfers xETH-USDT tokens into the user's wallet.
The xETH-USDT 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.
- 1.To invest into the strategy, users deposit
Sushiswap ETH-USDT LPtokens into the vault contract.
- 2.Upon deposit, they are issued a share of the vault, represented by
xETH-USDT. These user's funds are then made available for investment according to the pre-defined "strategy" above.
- 3.User's are able to deposit their
xETH-USDTtokens into the "Rewards Pool" to receive an additional APY in xFORCE tokens.