Yeti Finance: Cross-Collateral Borrowing On Avalanche
Yeti Finance & Cross-Collateral Borrowing on the Avalanche Network
In this post, we will look at:
Yeti Finance and What It Is
How To Use Yeti Finance
If you are a new reader, you may find these posts useful before diving in:
Anchor Protocol: The Demand Engine for Terra
This past week, Yeti Finance launched a new cross-collateral borrowing protocol to the Avalanche Network. In just the first few days, the protocol has captured over $800 million in TVL, making the launch a massive success. If you are a crypto investor looking for some additional yield on your assets, this might be what you are looking for.
What is Yeti Finance?
Yeti Finance is a borrowing protocol hosted on the Avalanche network. It allows users to borrow 11x against LP tokens/base assets, and another 21x on yield-bearing stablecoins at 0% interest. The protocol has also incorporated cross-margining features on the platform, meaning that entire portfolios that hold tokens across various networks can be fully collateralized on Yeti.
Users can continue to earn staking rewards on the collateralized assets, and the rewards are directly added to the total collateralized pool. This way, the platform optimizes compound interest and rewards. The collateral is used to mint the Yeti stablecoin, or YUSD, which can be staked for an APY of 30% today.
The YUSD stablecoin is kept steady at $1 through hard-peg and liquidity incentives, and already has over $300 million in liquidity on CurveFi. According to the platform, it can support over $10 billion of deposited collateral, and the team already has partnerships with notable projects such as BENQI, Curve, and AAVE.
The future roadmap of Yeti Finance involves the integration of Platypus Finance to support borrowing against additional assets such as Anchor UST and GMX assets. The platform is also heavily investing in security and audits to provide additional confidence to users.
Here is How You Can Get Started with Yeti Finance today:
1. Visit the Yeti Finance Website
2. Connect your Wallet Using MetaMask or WalletConnect. For this example, we will use MetaMask (if you don’t have the MetaMask add-in for Chrome, you can easily download it and create an account in less than 5 mins)
3. You may have to switch your MetaMask to the Avalanche Network. You can do that by adding the network here. If you are having trouble with this, you can read more on the instructions here.
4. Once you are in, you can directly add the tokens you want, or you can add AVAX token and swap it for any of the collateralizable assets on Yeti Finance
5. Under “Borrow”, create a trove by putting up your assets as collateral, and confirm. This will now let you mint the YUSD stablecoin
6. Under “Farm”, you will now be able to stake through the Stability Pool or the Curve LP tokens
Avalanche is picking up steam in the L1 wars, and Yeti Finance brings new liquidity and utility to the network. The cross-collateral borrowing function on Yeti gives us an interesting glimpse of how L1s can become interoperable with each other in the future.
Up Next For Avalanche
In our next post related to Avalanche, we will be looking at the overall state of the Avalanche network and how it has evolved in Q1 of 2022.
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