Yield

Welcome to the engine room of maxAPY's yield system.

If you're keen to understand how we turn your deposits into a yield-generating powerhouse, you're in the right place.

TLDR - "Where does the yield come from?"

Simple: We put your assets to work across DeFi's most profitable (and battle-tested) protocols on 9+ EVM-compatible chains.

When Curve needs liquidity, we provide it. When Aave needs lenders, we lend. When Convex offers boosted rewards, we boost. Your assets earn fees, lending interest, and protocol rewards - we just make sure they're always in the right place at the right time. We do this through optimized strategies on trusted protocols like Yearn, Sommelier, Convex, Beefy, etc.

No magic, no hidden tricks, just smart deployment of capital across proven DeFi strategies.

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How Yields Are Calculated

The secret sauce of maxAPY's reward system is our multi-protocol integration. Here's how it works:

• Asset Deployment: When you deposit ETH or USDC, we convert it into yield-bearing assets across multiple protocols, depositing to the optimal strategies across the DeFi universe.

• Continuous Optimization: Our algorithms constantly rebalance these assets across various strategies to maximize returns.

• Tokenization: You receive maxETH or maxUSDC tokens in return for your deposit. These represent your share of the total pool.

The maxToken Mechanism:

• Each maxToken (e.g., maxETH) represents a proportional share of the total assets in the corresponding vault.

• As rewards are harvested and reinvested, the value of each maxToken increases relative to the underlying asset.

• This means your maxTokens are constantly growing in value, even if the number of tokens remains the same.

Quick example:

1. You deposit 1 ETH and receive 1 maxETH.

2. The strategy earns a 10% yield over time.

3. Your 1 maxETH can now be redeemed for 1.1 ETH.

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Harvesting and Claiming Rewards

Don't worry, you don't need to wake up at the crack of dawn like some old-timey farmer to harvest these yields. Our DeFi robot butler (aka our smart contracts) handles all the heavy lifting:

• Automatic Harvesting: Our system regularly harvests yields from various protocols.

• Automatic Compounding: These yields are automatically reinvested, compounding your returns.

• Continuous Gains: The value of your maxTokens increases in real-time as rewards are harvested and reinvested.

When you're ready to cash out:

1. Hit the "Withdraw" button on our platform.

2. Choose how many maxTokens you want to redeem.

3. Receive your original tokens plus all accumulated rewards.

The withdrawal process converts your maxTokens back into the underlying asset at the current exchange rate, which includes all your earned rewards. So easy even your grandma could do it.

For more information on withdrawals, check this out:

Withdrawals

What's a Harvest?

In DeFi, a harvest refers to the process of claiming accrued yield or rewards from a yield-generating strategy, such as liquidity provision, staking, or lending. Protocols distribute rewards over time, and harvesting collects these earnings, making them available for reinvestment, withdrawal, or compounding.

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Factors Influencing Yield

The yield you can earn on your assets depends on a number of factors:

Performance

Not all strategies are created equal - each comes with its own balance of risk and potential reward. We're constantly measuring and adjusting these strategies, moving your assets to where they'll work hardest. Higher-performing strategies naturally lead to better rewards.

Amount

Size matters. Larger deposits often earn better returns - it's just the nature of DeFi. Some of the juiciest yields are only accessible with substantial capital, but our pooled approach means you can access these premium strategies even without whale-sized deposits.

Duration

Time is your friend. The longer your assets work with maxAPY, the more they can benefit from the magic of compound interest.

Conditions

DeFi is dynamic - yields rise and fall based on market conditions. Everything from trading volume to token prices plays a part. But our algorithms don't just watch these changes; they adapt to them in real-time, constantly rebalancing to find optimal returns in any market.

Costs

While gas fees don't directly affect your yield percentage, they can impact your actual returns. That's why we've built sophisticated gas optimization into our system, ensuring strategy shifts happen only when the potential gains clearly outweigh the costs. Your profits shouldn't get eaten up at the pump.

While some strategies become more rewarding over time, we never lock your funds. That's a promise. You can withdraw anytime - because we believe your assets should work for you, not hold you hostage.

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Extra Rewards

In addition to the base yield generated through our integrated strategies, some protocols (e.g. Superform) offer extra incentives. These may include native tokens, bonus emissions, or partner-specific rewards.

maxAPY receives these rewards at the protocol level and redistributes them proportionally to depositors based on deposit size and duration since the last distribution.

To prevent farming exploits and ensure fairness, distributions are executed randomly once per week. This makes it impossible to predict or game the system.

Important: Withdrawing before the next reward distribution means forfeiting any rewards accrued since the previous one. Only active depositors at the time of distribution are eligible.

This system ensures rewards go to long-term contributors - not opportunistic capital.