Testnet only. Parts of these docs describe the original design. Not traditional insurance, and no guarantee. See the testnet apps and the limits of protection.

Rates and Fees

YieldShield does not promise a rate. What a holder earns depends on the asset they protect, and what a provider earns depends on the fees that holders pay. This page explains how those fees work.

No Rate Comparison

Earlier versions of this page compared YieldShield with bank and fintech rates. We removed that comparison. The testnet apps use valueless tokens, so there is no real rate to compare, and any future rate would carry risks that a bank deposit does not.

Who Pays What

  • Holders keep any yield or price gain on their asset. When they take the asset exit, they pay a share of the realized gain.
  • First-loss providers earn that gain share in return for reserving backing and taking the first loss.
  • Pool creators and the protocol can each take a small part of the same fee.

Each pool's creator sets these shares. In the featured markets on Avalanche Fuji, for example, a holder who takes the asset exit pays 12% of the realized gain: 10% to providers, 1% to the pool creator and 1% to the protocol.

Fees Differ by Pool

Each pool's creator sets its fees, collateral ratio and terms, so they can differ from pool to pool. The app shows the exact numbers before you sign.

Yield-Bearing Assets

YieldShield pools can hold yield-bearing tokens, such as vault shares, so a protected asset can keep earning. That yield comes from the underlying protocol, which carries its own risks. See Protection for what the backing does not cover.