TokenDAO Stablecoin Yield Index (TYLD)
TokenDAO's stablecoin product on Ethereum.
Last updated
TokenDAO's stablecoin product on Ethereum.
Last updated
Contract address: 0x345059db2f948472A1FAFFE695a4C76a36088b0E
The TokenDAO Stablecoin Yield Index (TYLD) is a strategy providing long-term core exposure to interest-bearing stablecoins.
The TokenDAO Stablecoin Yield Index is a strategy designed to track the overall performance of a portfolio of interest-earning stablecoins. The portfolio is weighted based on factors including market cap, liquidity availability, transparency, and annual percentage rate. The TokenDAO Stablecoin Yield Index is intended to be a stable, interest-earning core holding within any diversified cryptocurrency portfolio.
Hold TYLD as a long-term core portfolio holding.
Earn swap fees by adding liquidity to the ETH/TYLD Uniswap liquidity pool.
Arbitrage the net asset value (NAV) of TYLD with the USDC/TYLD liquidity pool price.
Anyone with an Ethereum wallet can buy TYLD from a liquidity pool.
You can earn swap fees on your TCOR by contributing liquidity to the Uniswap USDC/TYLD liquidity pool. Liquidity pool providers earn 0.3% on all swaps.
The token must be an interest-earning stablecoin. The token must be a tradable ERC-20 token on the Ethereum blockchain and can be in any form compatible with Set Protocol smart contracts. The token must not have a rebasing mechanism due to incompatibility with Set Protocol’s smart contracts (i.e., AAVE aTokens, though this may change with further upgrades). There must be adequate liquidity available, reasonable transaction costs, and low tracking error. Tokens which are not compatible with Set Protocol, or which have low liquidity, high transactions costs, or high tracking error are excluded. The token must not be considered a security by corresponding authorities across different jurisdictions. These interest-earning tokens are relatively new, and the market is overall small which may limit the options available to just one or two tokens. However, this may change with further development. Tether related tokens have been excluded due to the lack of transparency surrounding Tether’s reserves and comingling of funds with Bitfinex cryptocurrency exchange.
Rebalancing will be minimal and typically only involve adding or subtracting interest-earning tokens from the portfolio in line with the token inclusion criteria. This approach is intended to keep turnover and network fees low. Rebalanced weightings are computed using a combination of capitalization weighting, equal weighting, and interest-rate weighting.
Anyone with an Ethereum wallet can issue new fully-collateralized TYLD tokens, but must first purchase the underlying constituent tokens with their wallet from an exchange.
First, go to the TYLD TokenSets product page and log in with a Web3 wallet. Click on the button with three dots (shown below).
Select Issue.
Type the number of TYLD tokens to issue and the schematic will update to show the amount of each token required to issue the desired number of TYLD tokens. Purchase these tokens in the amount required and once the required amounts are purchased in the wallet, then the "Issue" button at the bottom will activate, click on it.
Confirm your choices, approve the transactions, and the new fully-collateralized TCOR tokens will be received.
Anyone who owns TYLD can redeem TYLD for the underlying collateral portfolio.
First, go to the TYLD TokenSets product page and log in with a Web3 wallet. Click on the button with three dots (shown below).
Select Redeem.
Type the number of TYLD tokens to redeem and the schematic will update to show the amount of each token you will receive into your wallet. Click redeem, approve the transaction, and your wallet will then receive the underlying tokens of the TYLD portfolio.
