Everything you need to know about addirktive High Yield Assets
This article is a FAQ placeholder while we’re working on adding more chains and a better user interface. It may be outdated at the time you’re reading this, please make sure to find all current information via our official website:
How are we generating the yield?
An obvious question everyone would like to know to replicate what we are doing. The answer is as simple as it’s ambiguous: Optimized yield farming.
And no, we won’t explain in detail how we do this for the same obvious reasons. You can as well try and ask CocaCola for their secret recipe.
If that answer is not enough for you, that’s understandable but won’t change the fact that we are not going to share details. You are free to make use of our assets and products or not 🤷♂️
Are the assets backed 1:1?
No, all the assets are backed with way more than the equivalent 1:1. Currently all circulating supply is backed at least twice with the underlying asset and growing as we continue to generate yield ‘in kind’.
What does yield generation ‘in kind’ mean?
We put the actual asset to work without the risk of impermanent loss and generate yield in the same asset. That means if we put 1 BTC to work, the yield generated is more BTC of which a part is paid to holders of our High Yield Assets. The original yield is compounded automatically to further increase the return over time.
Are there any limitations on High Yield Assets?
Yes, High Yield Assets will be limited in supply. Since our concept is not infinitely scalable, we will limit the issuance or raise the price High Yield Assets are sold for. This means that newly issued aBTC may not be sold for 1.00 BTC but for 1.01 or more in the future while the peg to withdraw will be maintained at 1:1.
aBTC may then be traded between current holders at a premium price between the newly issued and the redemption price. The premium price caused by demand due to the high yield it generates over time.
What are the current APR/APY rates?
Are you trading with my coins?
No, we are not trading with your coins. We always keep assets received from users in kind. That means either the original coin or equivalent wrapped/anchored tokens on supported chains. Trading is a small part of our own overall strategy but not with funds owed to users!
What happens when a bear market starts?
Nothing changes for us. Since we keep your coins in kind and don’t trade with them, there is no bad trade or potential for impermanent loss.
We get 1 BTC, we keep 1 BTC, we can return 1 BTC.
A really bad bear market (sub $30k BTC) could reduce the yield we are able to generate. In that case the APR may be reduced for some time, however the 1:1 peg for withdrawals will always be applicable.
How can you get addirktive High Yield Assets?
We’re currently offering our High Yield Assets only via the Stellar DEX. Additional on/off ramps will be added soon.
If you do something that impacts others in a positive way, you will always raise the voices of bad characters casting doubt at your intentions because they themselves only know how to act in bad faith and would do so given the chance.
Rates for addirktive High Yield Assets are subject to change. Digital currencies are not legal tender, are not backed by any government, and addirktive High Yield Assets are not subject to FDIC or SIPC insurance protections. Daily yield is paid for assets held in balance and offers, not in liquidity pools.