YT - Leveraged Yield Farming

What Are YT Tokens?

Imagine being able to capture yields and protocol rewards from a large DeFi position while investing just a fraction of the capital. That's exactly what YT tokens enable. These innovative tokens let you participate in farming programs with enhanced capital efficiency through implied leverage.

Why Choose YT Tokens?

YT tokens transform how users can participate in DeFi yield farming. Instead of depositing $1 million directly into a protocol, you could buy YT tokens that capture the same yield for significantly less capital – often just $40-200k depending on market conditions. This creates implied leverage of 5-25x, but importantly, without any liquidation risk.

Second, certain FIVA pools offer enhanced reward multipliers through special arrangements with partner protocols. These boosted rewards might come from NFT ownership rights, strategic partnerships, or protocol-specific deals. When selecting your position, you'll see these enhanced multipliers displayed in our interface, showing exactly how much additional yield you can earn through FIVA compared to direct protocol participation.

This combination of capital efficiency and access to enhanced rewards through FIVA's ecosystem partnerships makes YT tokens a powerful tool for optimizing your DeFi strategy.

Understanding the Risks

While YT tokens offer powerful opportunities, it's important to understand their risk profile:

1. Leveraged Exposure: YT tokens provide amplified exposure to yield movements. While there's no liquidation risk, market movements are magnified by your leverage.

2. Market Risk: YT tokens price in future protocol rewards and airdrops. Their value can fluctuate based on market expectations and actual distributions.

3. Smart Contract Risk: As with any DeFi product, YT tokens carry smart contract risk from both FIVA and underlying protocols.

How to Farm with YT Tokens

Step 1: Access the Market

Navigate to FIVA's market section and select your desired asset. Each market displays current leverage ratios and reward multipliers to help inform your decision.

Step 2: Purchase YT Tokens

Execute a swap to acquire YT tokens. The amount of YT tokens purchased determines your farming power – remember, you're buying the right to yields and rewards from a much larger notional position.

Step 3: Monitor and Claim Rewards

Track your position through FIVA's dashboard. Accumulated yields can be claimed directly through the interface.

Step 4: Exit Position (Optional)

To stop farming, simply sell your YT tokens back to the market. Your exit price will reflect current market conditions and accumulated rewards.

Important Notes about Rewards

While some rewards are immediately visible and claimable through FIVA's dashboard, certain protocol points (like Storm, Ethena, or EVVA points) are displayed on respective protocol interfaces or distributed during token airdrops. FIVA is developing functionality to display all reward types directly in the dashboard.

Summary

YT tokens offer an efficient way to participate in DeFi farming without committing large amounts of capital. They're particularly valuable when protocols announce reward programs or yield boosts – users can quickly gain leveraged exposure through YT tokens rather than having to deploy significant capital directly.

This capital-efficient approach to yield farming represents a significant innovation in TON's DeFi ecosystem, making sophisticated farming strategies accessible to a broader range of users.