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Yield Generation

Yield Generation

SoulPeg generates sustainable yields for stakers through integration with Venus Protocol, the leading lending platform on BNB Chain. This approach provides transparent, market-based returns without relying on token inflation or unsustainable incentives.

How Yield Generation Works

1. Deposit Flow

When you deposit USDC into SoulPeg:

Your USDC → StakeableAsset → StrategyRouter → VenusUSDCVault → Venus Protocol

2. Venus Protocol Integration

  • Your USDC is supplied to Venus Protocol's lending pool
  • Borrowers pay interest to access these funds
  • Interest accrues in real-time as vUSDC appreciates
  • No impermanent loss risk (single-asset lending)

3. Yield Collection

  • Venus yields accrue automatically in the vUSDC token
  • Protocol collects yields periodically
  • 7% protocol fee retained for operations
  • 93% distributed to sUSDC holders

Current Yield Metrics

Venus Protocol APY

  • Current Rate: ~7-8% APY (variable)
  • Update Frequency: Per block (~3 seconds)
  • Verification: Check Venus Protocol directly

Your Net APY

Your APY = Venus APY × 0.93

Example with 7.23% Venus APY:

  • Venus gross yield: 7.23%
  • Protocol fee (7%): 0.51%
  • Your net yield: 6.72%

Why Venus Protocol?

Security

  • Battle-tested since 2020
  • Multiple audits by leading firms
  • Over $1B in TVL
  • Proven track record on BNB Chain

Sustainability

  • Real yield from borrower interest
  • No token emissions required
  • Market-driven rates
  • Transparent on-chain data

Efficiency

  • Automated yield accrual
  • No manual claiming needed
  • Gas-efficient operations
  • Compound interest built-in

Yield Transparency

On-Chain Verification

You can verify yields directly:

  1. Check Venus Protocol's supplyRatePerBlock()
  2. Calculate annual rate: rate × blocks_per_year
  3. Apply 93% to get your net rate

Frontend Display

The UI shows:

  • Current Venus APY (gross)
  • Protocol fee percentage (7%)
  • Your net APY (after fee)
  • Historical yield data

Risk Considerations

Venus Protocol Risks

  • Smart contract risk (mitigated by audits)
  • Variable interest rates
  • Borrower default risk (mitigated by overcollateralization)

Mitigation Measures

  • Only using established protocols
  • Single-asset exposure (no IL risk)
  • Conservative fee structure
  • Emergency withdrawal mechanisms

Future Yield Strategies

While currently focused on Venus Protocol, the StrategyRouter architecture allows for:

  • Additional lending protocols
  • Yield aggregation strategies
  • Risk-adjusted allocations
  • Community-proposed strategies

All subject to careful review and governance approval.

Yield Distribution Schedule

Yields are distributed to sUSDC holders through:

  • Periodic rewardMint() calls by the operator
  • Proportional distribution based on holdings
  • Same lock mechanics as deposits
  • Transparent on-chain events

Summary

SoulPeg's yield generation through Venus Protocol provides:

  • Sustainable returns: Real yield from lending, not inflation
  • Transparency: All rates verifiable on-chain
  • Security: Battle-tested protocol integration
  • Fairness: 93% of yields go to users
  • Simplicity: Automatic accrual, no complex strategies

This approach ensures that your staked USDC generates real, sustainable yields while maintaining the security and simplicity that SoulPeg prioritizes.