Yeti Finance
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Tokenomics

Yeti Finance utilizes a two token system - $YETI and $YUSD.

What is $YUSD?

$YUSD is an over-collateralized USD-pegged stablecoin issued by Yeti Finance. It has multiple mechanisms to keep its price stable and pegged at $1. YUSD can be minted by depositing collateral on Yeti Finance.
Learn more about price stability here: Mechanisms for YUSD Price Stability

What is $YETI?

$YETI is the Yeti Finance protocol token. In the future, $YETI will transition into a governance token.
Users can stake YETI to earn more YETI while also accruing veYETI over time. Staking YETI for more YETI will end once veYETI utility is live.
veYETI can be be used for four things:
(1) Boosting $YETI rewards for stability pool staking
(2) Boosting $YETI rewards for liquidity providing for YUSD.
(3) Reducing the protocol’s cut of yield on deposited assets (YUSD rebates)
(4) Getting access to special strategies like Pandora's box (aUST-Anchor).
The veYETI model is designed to incentivize users to accumulate and stake $YETI through providing real utility to farmers and protocol users. When you unstake YETI, you lose your veYETI balance, similar to vePTP and veJOE.
Users can begin accumulating veYETI at launch. Users staking at launch can get a head start on accumulating veYETI for its extensive utility implementations.

What is YETI's distribution?

50% Community Incentives: Liquidity mining incentives, long-term liquidity providers, genesis liquidity providers, and grant programs.
25% Current and Future Team: This allocation linearly vest over a three year schedule with a 3-month lock. This allocation will be split amongst a core team of eight, non-core contributors, and future team members.
15% Foundation: Development cost, economic security, smart contract auditing, service providers (legal), operational expenses, and partnerships.
1.17% Strategic Investors: Avalanche Foundation, Genesis Block Ventures, Trader Joe, and the founders of BENQI (Hansen, JD, Dan) are the partners who have supported Yeti Finance since day one. Strategic investors will have the same vesting schedule as the team and will continue to advise on future growth of the protocol.
8.83% Future investors: This allocation is set aside in the case it would be definitively beneficial to everyone to bring in additional strategic investors. All future investors will be on a vesting schedule. If not used, this 9% will be divided amongst the Foundation and Community Incentives pool.

What is YETI's emission/vesting schedule?

YETI has a max supply of 500,000,000 tokens.
Our community emissions schedule will look something similar to the schedule below. The schedule is front-loaded to bootstrap the protocol, with a higher emissions rate initially, and then a constant emissions rate for the next four years after that of 5,000,000 YETI emitted per month. Token emissions will begin in April 2022.
Emission rates remain subject to change depending on market conditions.

Projected Community Token Distribution Schedule

We will be allocating roughly 70% of all Yeti emissions to Curve liquidity for the 6 months of the protocol, 20% to the stability pool, and 10% to Trader Joe pools — and then re-evaluate from there. Below is our rough targeted emissions schedule, though it is subject to change. The idea is that the first 3 months of the protocol will be a bootstrapping period with elevated emissions, and from then on we will be sticking with a slower, sustainable emissions rate.
Month
Emissions in Month
Total Emitted
4/14/22
18,000,000
18,000,000
5/14/22
~12,000,000
30,000,000
6/14/22
~7,000,000
37,000,000
7/14/22
5,000,000
42,000,000
8/14/22
5,000,000
47,000,000
9/14/22
5,000,000
52,000,000
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