Yieldstream Protocol

sovereign yield infrastructure

[Yieldstream Protocol @0xyieldstream]

🧵1/8 Today we are proud to announce Yieldstream. A highly flexible yield aggregation protocol that operates entirely on-chain. Designed with first principles in mind the Yieldstream stack offers multiple layers of control, decentralises the vault rebalancing process and introduces circuit breakers into the yield aggregation landscape.

[Yieldstream Protocol @0xyieldstream]

@ERenX011 A discord server link will be announced when the time comes. Stay tuned.

[Yieldstream Protocol @0xyieldstream]

🧵1/8 Today we are proud to announce Yieldstream. A highly flexible yield aggregation protocol that operates entirely on-chain. Designed with first principles in mind the Yieldstream stack offers multiple layers of control, decentralises the vault rebalancing process and introduces circuit breakers into the yield aggregation landscape.

[Yieldstream Protocol @0xyieldstream]

In regards to the recovery mode:

The protocol continuously monitors the total value recorded in an external market compared to the deposits made by the vault.

If the external market value ever drops below the deposited amount, the invariant is considered broken, signaling a potential malicious act or critical failure in the external market.

In that case:

The protocol immediately switches the affected market to recovery mode.

In recovery mode:No further deposits are allowed into the market.

The remaining funds are queued for withdrawal.

As soon as any user interacts with the vault, the funds are automatically withdrawn and secured back within the vault.

[Yieldstream Protocol @0xyieldstream]

@Web3kxn_ Dm's are open.

[Yieldstream Protocol @0xyieldstream]

@Web3kxn_ The vault takes care of the entire process by itself. All calculations are conducted on-chain so the vault can calculate the actual apy from a proposal and as long as the proposal adheres to the rules of the vault and improves the vault's returns it gets activated.

[Yieldstream Protocol @0xyieldstream]

@DavyCrypt_ @base Dm's open

[Yieldstream Protocol @0xyieldstream]

@GEkaeze Thanks for letting me Know. Just unlocked dm's. Feel free to reach out.

[Yieldstream Protocol @0xyieldstream]

@bobajeanjacques Thank you sir. Coming soon on Base.

[Yieldstream Protocol @0xyieldstream]

@Morpho_Intern @base @MorphoLabs Live in a couple of months. Starting with Base.

[Yieldstream Protocol @0xyieldstream]

7/8 During recovery mode no further deposits are allowed in the affected market and the remaining funds in the respective adapter are queued for withdrawal. As soon as any user interacts with the vault the funds are automatically withdrawn and secured back within the vault. Yieldstream’s circuit breakers are the last line of defence.

[Yieldstream Protocol @0xyieldstream]

6/8 Liquidity caps are the first layer of defence. The invariant based circuit breakers are the second. Yieldstream’s invariant mechanism monitors the values of a vault’s deposits on an adapter by adapter basis and triggers the vault’s recovery mode in case of losses.

[Yieldstream Protocol @0xyieldstream]

5/8 Let’s see an example of this mechanism in action. Suppose Bob deploys a Yieldstream vault that provides usdc liquidity into Morpho’s cbbtc/usdc, eth/usdc and mkr/usdc markets. Knowing that the mkr token is less liquid compared to btc and eth Bob can decide to place a 20% liquidity cap on the mkr/usdc adapter. This mechanism prevents submitted strategies from allocating more than 20% of the vault’s liquidity on the mkr/usdc market.

[Yieldstream Protocol @0xyieldstream]

4/8 Yieldstream vaults come with embedded risk management mechanics called liquidity caps. Yieldstream vault operators are able to impose these caps on an adapter by adapter basis. This allows them to exercise their own risk management framework on the vault rebalancing process and can be used to keep a vault’s risk exposure in check. These guardrails can always be modified or removed.