Rehypothecation
Last updated
Last updated
Rehypothecation is a big word for a simple concept. Because AMMs only use a single tick to market make at any given moment, most of the liquidity in an AMM is sitting idle, waiting to be used. We simply move those tokens to other low-risk yields sources to earn while they're idle, and move them back when they're needed by the AMM.
We provide a growing list of available rehypothecation protocols and you can choose which one you'd like. Some examples would be AAVE, Lido, Compound, EigenLayer, etc. After TGE, our token stakers will be able to decide that list.
Users can choose as many or as few rehypothecation vaults as they want. If they choose multiple, we'll split the available tokens evenly between all applicable vaults.