Yeti Finance offers high-leverage cross-collateral borrowing against a variety of Avalanche assets.
Yeti Finance, an innovative, Avalanche-native borrowing protocol, went live on April 16. Yeti Finance had a successful launch and gained $500M total value locked within its first 24 hours.
Yeti Finance allows users to borrow up to 11x against LP tokens, staked assets, and base assets, plus 21x on yield-bearing stablecoins at a 0% interest rate. This integration expands the Avalanche lending landscape, letting users borrow against previously un-collateralizable assets.
Utilizing cross-margining, users of Yeti Finance can borrow against their entire portfolio, which can reduce liquidation risk and the amount of collateral required. While borrowing on Yeti Finance, users continue earning farming rewards on deposited collateral. Rewards are auto-compounded automatically for maximum yield-capture.
Borrowers deposit collateral in “troves” to mint Yeti’s native stablecoin, YUSD. YUSD uses a blend of hard-peg mechanisms, decentralization, and liquidity incentives to be liquid at $1. At the time of this post, YUSD had already built over $300,000,000 in Curve Liquidity, making it the second most liquid stablecoin pool on Avalanche only behind av3CRV.
After minting YUSD, it can be staked in Yeti Finance’s stability pool to earn YETI rewards or swapped for other stablecoins on Curve to purchase new crypto assets.
“We have chosen Avalanche due to the power of its scalability, security, and innovative consensus mechanisms,” said 0xTalent, Co-Founder of Yeti Finance. “DeFi innovation out of Yeti Finance can only be possible due to the power of the blockchain it’s built on. We want to build out the future of DeFi, and to do that we want to work with passionate key partners and investors, like the Avalanche Foundation, which is aligned in our mission of financial impact and innovation.”
The Avalanche Foundation has made a strategic investment in Yeti Finance.
Yeti Finance’s innovative risk mechanisms let users borrow at the lowest minimum collateral ratios to unlock deep liquidity. In addition to bringing an innovative new product to market, the protocol (which is not connected to Yeti Swap) will bring billions of dollars in new liquidity to Avalanche through greater capital efficiency. The protocol can support tens of billions of dollars in deposited collateral.
The Yeti Finance team has partnerships and integrations with other Avalanche protocols, such as Trader Joe, BENQI, Aave, Curve, and Colony Lab. In the future, Yeti Finance plans to work with Avalanche protocols like Platypus to support borrowing against deposited stablecoins, borrowing against aUST (deposited UST in Anchor), Benqi’s sAVAX, and GMX assets.
Additionally, Yeti Finance has invested more than $800,000 in extensive protocol security: five smart contract audits, two economic analysis reports, and multiple independent peer reviews.
These security measures covered auditing of the core borrowing protocol, review of all ancillary systems (vault tokens, collateral integrations, and oracles), and thousands of agent-based simulations of the protocol under different black swan events to ensure solvency.
Yeti Finance has also partnered with Three Sigma Labs, a world-class economic modeling and smart contract auditing firm. The parties have a 12-month engagement to help bolster economic and smart contract security of the protocol.
This post is based on materials provided by Yeti Finance. For more, visit Yeti Finance’s website. Yeti Finance is a new, experimental platform, and users should perform due diligence before using. Also, please read this important notice.
Yeti Finance is a next-gen decentralized borrowing protocol built on Avalanche. This innovative protocol enables users to borrow over 20x against their entire portfolio for a 0% interest fee, while earning farming rewards on deposited assets. Unlock deep liquidity, borrow at the lowest collateral ratios, and collateralize your entire portfolio to gain better protection against liquidations.
Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low cost, and green. Any smart contract-enabled application can outperform its competition by deploying on Avalanche. Don’t believe it? Try Avalanche today.