FAQ
General FAQ
What is YO?
YO is your multi-chain yield optimizer, continuously rebalancing your assets across DeFi to deliver the best yield.
How does YO work?
When you deposit, YO allocates your assets to the highest-yielding pools across multiple chains, optimizing yield and managing rebalancing for the vault. Allocations are adjusted based on risk using Exponential.fi's trusted ratings. The underlying pool listings are transparent and can be viewed on the vault page.
What makes YO different?
YO never stops hunting. YO scans the entire DeFi ecosystem—across chains and protocols—to find the best risk-adjusted yield for your assets. It continuously adds new opportunities and auto-rebalances your assets to keep your yield optimized.
Why does YO have superior yields?
YO looks for all the pools within a strategy and is asset-, protocol- and chain-agnostic: eg. yoBTC can allocates cbBTC or tBTC, on Morpho or Aave, on Base or Ethereum.
YO optimizes yield on a risk-adjusted basis by investing new deposits in the most attractive yields and redeeming withdrawals from the least attractive yields, on a risk-adjusted basis.
YO automates strategies you cannot perform on your own, like continuously moving to the highest tick to provide liquidity to cbETH-wETH on Aerodrome, or performing a carry trade on BTC to earn higher yields.
How does vault allocation work?
Vault allocation consists of two key components: underlying pools and target allocation. The target allocation defines how assets are distributed across these pools, ensuring diversification while maximizing risk-adjusted yield.
How is the YO yield calculated?
Yield is calculated as the weighted average of the yields from the underlying pools within a vault and considers any idle assets.
Can I build on YO?
Yes! Hit us up on Discord or Telegram to know more about what you want to build and explore partnership opportunities.
Vaults FAQ
How does the rebalancing of pools and allocation work?
Each yoVault has a target allocation of pools, which is a subset of all the whitelisted pools for the vault. Every day, the protocol calculates the optimal allocation based on the existing pools' risk rating and trending yield. The protocol then divests assets from the least attractive pools and invests those in the higher yielding ones.
How are gas costs, bridging fees and other costs handled?
At the moment, the Protocol is sponsoring gas fees. All of the other costs of the vault are socialized among depositors. The optimization algorithm does take costs into consideration to avoid unnecessary transactions on a daily basis. This means that even if one pool is particularly high-yielding on one day, the protocol will not rebalance towards that pool automatically to avoid incurring in bridging and trading fees unnecessarily. Once a trend has been confirmed, the vault is rebalanced.
This approach makes yield farming more efficient for you as an individual, given that keeping tabs on all of these costs, risks and pools is really a full-time job and that's why YO exists.
Can I instantly withdraw my funds? Are there any lock-up periods?
The yoVaults keep a % of their assets idle so that you can redeem your yoTokens instantly. When you want to redeem a larger portion of the vault's assets, your withdrawal will be queued and may take up to 24 hrs to execute. In those cases, your yoTokens will be burnt and as soon as the protocol redeems assets from the existing positions, you will receive your assets in your wallet automatically without having to come back to claim them.
yoTokens FAQ
What is a yoToken
Each Vault has a dedicated strategy. yoETH is investing in yield strategies based on ETH. yoBTC is investing in yield strategies based on BTC. When you mint yoTokens, you are entering at a specific yoToken<> asset exchange rate and that rate increases over time. You don't have to claim yield or do anything, your assets grow automatically with the protocol. The yoTokens your receive after depositing an asset in the vault represent your share in the vault.
How do yoTokens generate yield?
yoTokens increase in value relative to their underlying asset as yield accrues. Yield accrues through the various underlying pools and investment strategies that the vault is investing in. The yield accrues to all participants in the vault proportionally to their share in the vault while they are holding the yoTokens.
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