🏦tVaults

TaoTrade Yield Generation

Summary

tVaults offer a user-friendly “set-and-forget” strategy for yield farmers to earn passive income generated from real yield sources in the decentralized finance (DeFi) ecosystem. The primary sources of yield generation are from selling volatility to traders. Up to 60% of vault TVL can be used for trading. The remaining 40% is deployed into partner Automated Market Makers such as Camelot and Trader Joe.

Yield

TaoTrade tVaults generate yield through three main mechanisms:

1. Trading Fees: Premiums earned from selling volatility to traders.

2. AMM Swap Fees: Liquidity deployed into partner AMMs are in full range. It sells volatility across the curve.

3. Token Incentives: Token incentives are added in each liquidity mining season. This will add further yield for the tVaults.

The tVaults automatically reinvest generated yield back into the strategy. This can lead to increased returns over time and maximize earning potential for users.