❔FAQ

What is YieldX?

YieldX is a decentralized finance (DeFi) protocol designed to enhance liquidity providers' returns through leveraging, borrowing, and lending. It allows users to retain control of their liquidity positions while maximizing yield and participating in governance with the $YIELDX token.

How does staking work on YieldX?

Staking $YIELDX allows users to earn rewards from platform fees, receive enhanced governance voting power, and participate in revenue-sharing. Stakers can choose varying lock-up periods, with longer durations offering higher returns, up to 80% APR.

How can I borrow assets using YieldX?

YieldX allows users to borrow digital assets by using their liquidity provider (LP) tokens or other digital assets as collateral. The borrowing process involves supplying your assets, selecting the asset you want to borrow, and confirming the transaction. Once borrowed, you can use the assets as needed.

What happens if my position is liquidated?

If the health factor of your collateral drops below a certain threshold (usually due to market volatility), liquidation may occur. In this case, a portion of your collateral is sold off to repay the debt. YieldX uses a system of distributed ownership to ensure that both the user and the liquidator receive fair shares of the collateral.

What is the $YIELDX token?

$YIELDX is the native governance and utility token of the YieldX protocol. It is used to stake for rewards, vote on governance decisions, participate in revenue-sharing, and incentivize liquidity providers. The token aligns user interests with the platform's growth.

What is the Health Factor?

The Health Factor is a safety indicator for collateralized positions on YieldX. It represents the risk level of liquidation. A health factor above 1 indicates that the position is safe, while a health factor below 1 puts the position at risk of liquidation.

How does YieldX’s revenue-sharing model work?

YieldX redistributes a percentage of platform-generated fees (from borrowing, leverage, and liquidation fees) to $YIELDX token holders and stakers. The more $YIELDX you hold or stake, the larger your share of the revenue pool, which is paid out regularly.

Are there fees associated with YieldX?

Yes, YieldX charges fees for borrowing, leveraging, and liquidation events. These fees are collected to maintain the protocol’s sustainability and are partially redistributed to $YIELDX holders and stakers through the revenue-sharing model.

How can I propose and vote on changes to the protocol?

Governance on YieldX is conducted through the $YIELDX token. Holders can submit proposals for protocol upgrades, new features, or changes in tokenomics. Proposals that meet the required token threshold are put to a community vote, where token holders can cast votes based on their token holdings or staked amounts.

Can I earn passive income on YieldX?

Yes, by staking $YIELDX tokens or providing liquidity to the platform, users can earn passive income through rewards from platform fees, staking incentives, and liquidity mining programs.

Is YieldX safe to use?

YieldX employs a decentralized and non-custodial approach, meaning users retain control over their assets, however users should still understand the risks associated with DeFi and volatile markets.

What assets can I use as collateral?

YieldX supports a wide range of digital assets, including liquidity provider (LP) tokens and various cryptocurrencies. You can use these assets as collateral to borrow other assets or participate in yield generation strategies.

How is YieldX different from other DeFi platforms?

YieldX stands out by offering advanced leveraging and borrowing capabilities specifically for liquidity providers, allowing users to maximize their returns while still holding ownership of their LP tokens. Its focus on revenue-sharing, governance participation, and long-term sustainability also differentiates it from other protocols.