# Introduction

Yeti Finance is a lending protocol on Avalanche that allows users to borrow up to against their portfolio of LP tokens, staked assets such as sJOE and sAVAX, and yield-bearing stablecoins in a single debt position.

Rewards from deposited collaterals are auto-compounded like staked assets or LP tokens are deposited into Yeti Finance’s protocol

Borrowers receive YUSD, an overcollateralized stablecoin which can be swapped for additional assets whi can be re-deposited into Yeti Finance.

YUSD can be redeemed for $1 of underlying collateral minus redemption fees. Yeti Finance builds off [Liquity's ](https://www.liquity.org/)economic model to ensure peg stability and efficient liquidations.

Yeti Finance is a **quantum leap** forward in the stablecoin/lending landscape. 

NOTE: A new fee model is in effect as of November 2nd, 2022. These changes include a reduction of one-time borrowing fees and and introduction of a 0.5% starting interest rate for new and existing borrowers. Read more [here](https://blog.yetifinance.co/the-path-to-becoming-the-best-defi-borrowing-protocol-790459ddf93d).

Please read our [DISCLAIMERS: RISK & YETI/YUSD ](https://docs.yeti.finance/disclaimer-risks-and-yeti-yusd)and [Terms of Service](https://docs.yeti.finance/terms-of-service) before using Yeti Finance and interacting with YETI or the YUSD token.

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