It’s been a long time coming but it’s finally here. Yield, the fixed-rate lending and incentivized borrowing platform is live! Get started earning fixed, guaranteed, what-you-see-is-what-you-get interest on the Yield dapp here with support for over 30 crypto assets including AMPL (a market first), YFI, SUSHI, LINK, and ANT. Borrowers aren’t left behind on Yield, alas, they’re arguably at the forefront because for every loan a borrower repays on Yield, they earn YLD tokens proportional to the value of the interest they offered the lender and amount they borrowed.
What is Yield?
For those unfamiliar with Yield (aka yield.credit), it is a non-custodial, individualized, fixed-rate lending and incentivized borrowing platform. This individualized nature contrasts with virtually every other DeFi lending platform out there where everyone deposits assets into pools and then “interest rates” are decided by the interplay of such depositing and people borrowing out from it. On Yield, users do not deposit assets into some pool but rather into isolated contracts specific to their activity. This enables Yield to offer:
- fixed-rates — while a handful of projects today tout “fixed-rate lending”, only Yield gives actually fixed, unmoving rates with no caveats
- incentivized borrowing — as every loan is individual, we can accurately reward each loan repaid by a borrower proportional to the interest paid and amount borrowed
- undiluted interest — with no pool over which interest is spread, a lender earns the full, undiluted interest a borrower repays
- isolated risk — no pool means funds on the platform aren’t sitting together, idle, and at the mercy of the riskiest asset supported
As you head over to the Yield dapp here, you might be wondering if the figures are the usual *ahem* “apy”, fluctuating, never certain rates that is the norm on other DeFi lending platforms. Well, you can rest easy because that is not the case. What you see is what you get. Lend out 10 Eth at 5% interest for 15 days on Yield and you’ll get exactly 10.5 Eth when the borrower repays. After repayment, the borrower can claim ~4% worth of the interest in YLD (up to the cap which is dependent on the current market price of YLD). This is true for all 30+ tokens Yield supports!
Aside from being the reward for repaying loans on Yield, the YLD token, if staked, offers:
- fee discounts
- an increase in the amount of YLD earned from repaying any one loan
- lower liquidation ratios
100% of the fees on Yield are used to buy-back YLD on the open market and burn it. Check out our dashboard here for an idea of what this looks like.
This mainnet launch is merely the start of Yield’s journey. You can look at our updated roadmap here. Yes, Yield is going to be launching on the Fantom network in the coming weeks. Aside from the very obvious problem of the current Ethereum gas fees being dreadfully high, the Fantom network is currently the most robust and arguably decentralized network aside from Ethereum that Yield can use and it’s improving at quite the pace. It also happens to house certain items that will eventually play a role in to-be-built Yield features.