XY Finance

Yield Farming

When LPs deposit their funds to incentivize yBridge Pool and provide liquidity, they will earn the yield that consists of swap fees and liquidity mining (farming) rewards. Each pool has its specific token (only USDT or USDC are available for the time being), and the liquidity they provide is the token in that pool, hence USDT, USDC or ETH.
The mechanism of our Pool, like that of Multichain, which focuses on the provision of bridging services, is designed as a single-asset liquidity pool where users provide only one type of token (USDC/USDT/ETH for now) as liquidity so that LPs never have to be exposed to the well-known risk called impermanent loss that LPs of DEXs (such as UniSwap) are facing and the risks such as price swings/fluctuations or the likelihood of high slippage.

Key Points to Know Before Joining yBridge Yield Farming

Due to the pool being built on the OmniChain, there are several key features you should be aware of when engaging in Yield Farming:

yBridge LPs Earn Bridge Fee automatically

The gains are distributed to be included in the deposit certificate, which is like an interest-bearing token but earning from bridge fees, not from interests. Feel free to dilute my position. More TVL can generate more bridge fees and keep the APY maintaining good. A month ago, there were only 350 ETH in pools, but there are almost 590 right now, 65% MoM.

Before depositing into yBridge you must know the “Withholding Fee”

Why will yBridge have a Withholding Fee? Because yBridge is using its own OmniChain Solution to run the bridge pools on 16 EVM chains (more are coming on zkrollups). Therefore, the deposit and withdrawal of yBridge will have been completed in two transactions. To cover the gas fee used for the second transaction, yBridge will charge a withholding fee.

Why does yBridge use “OmniChain” to build bridge liquidity pools?

By doing so, all assets deposited in yBridge will be calculated together. That’s to say, 1 xyETH on Arbitrum is equal to 1 xyETH on Poylgon zkEVM. Both are equal to 1.034675 ETH (current price.)

How long does Deposit and Withdraw in/from yBridge take?

On average, it takes around 1 mins to complete the deposit and withdrawal. When you deposit assets into yBridge, the system will send your deposit certificates such as xyUSDC, xyUSDT, and xyETH in the second transaction.

How to withdraw your assets in yBridge?

It’s simple as long as you click the withdrawal and the system will process it. If the liquidity isn’t enough, please wait for a while, and the team will inject more liquidity into it.

How to Deposit (Provide Liquidity) on yBridge

To deposit and provide liquidity on the yBridge you can follow these step-by-step instructions