Flux Amplifier
Yield Amplifier
Fluxtra’s Yield Amplifier is the core mechanism that transforms staked assets into liquid representations, ensuring uninterrupted yield generation. This system allows users to stake their native assets and receive ftOM (e.g., ftOM for OM stakers), which can be freely utilized across the DeFi ecosystem while still earning rewards.
How the Yield Amplifier Works
Token Deposit: Users deposit their native assets (e.g., OM) into the smart contract.
Minting of Liquid Staking Tokens: The protocol issues ftOM, representing the staked asset, in a 1:1 ratio.
Rewards Accumulation: The staked tokens continue generating yield, with rewards automatically compounded within the system.
DeFi Utility: ftOM can be used across lending, yield farming, and other DeFi strategies.
Flexible Unstaking: Users can either swap ftOM on secondary markets for immediate liquidity or unstake them through the withdrawal system, subject to the network’s standard unbonding period.
Advantages of the Yield Amplifier
Seamless Yield Generation: Users earn staking rewards while retaining asset mobility.
Optimized APY: Auto-compounding ensures consistent reinvestment of earnings.
Immediate Liquidity: ftOM holders can trade or deploy their tokens freely.
Enhanced Network Security: Staked assets contribute to the chain’s security while remaining accessible for DeFi integration.
Use Cases for ftOM
Liquidity Provision: Stake ftOM in AMMs to earn additional yield.
Leveraged Staking: Use ftOM as collateral for borrowing, enabling leveraged staking.
Yield Stacking: Maximize returns by engaging in multi-layered DeFi strategies.
The Yield Amplifier unlocks a new paradigm of capital efficiency, combining the benefits of staking with DeFi composability.
Fees
Deposit Fees: 0 %
Withdrawal Fee: 0 %
Performance Fees: 5% of Validator yield
For example, if Validator yield is 8%, Performance Fees will be 0.4% (5% x 8%)
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