USDT

General Information

USDT strategy is available at: https://forcedao.com/strategies

Category

Details

Symbol

xUSDT

Risk Profile

Low

Strategy

Lending + Compound Interest

Protocols

Compound Finance, IDLE Finance

How does the strategy make money?

All Force "Yield Automation" strategies generate revenue by investing the asset a user deposits, into an "incentivized" financial market.

In the case of the USDT strategy, the "incentivized" financial market is Compound Finance via an IDLE Finance proxy, where yield is generated by:

  • Lending Fees: Native APY generated by lending USDT on Compound Finance.

  • Compound Interest: Liquidating both COMP and IDLE incentive rewards in exchange for USDT, which is then reinvested into the user's original position.

How does the reward boost work?

After a user deposits USDT tokens into the vault, the contract automatically mints and transfers xUSDT tokens into the user's wallet.

The xUSDT 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.

Step-By-Step Explainer

  1. To invest into the strategy, users deposit USDT tokens into the vault contract.

  2. Upon deposit, they are issued a share of the vault, represented by xUSDT. 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 xUSDT tokens into the "Rewards Pool" to receive an additional APY in xFORCE tokens.

Contracts