Earn

Where does the yield come from?

• Traders borrow assets to run delta-neutral strategies or take directional trades. Unlike perps or lending protocols, Wasabi doesn’t take the other side or rely on emissions. Every position is overcollateralized, and the vaults are fully transparent with no lockups or deposit fees. Additionally, token teams may choose to boost the Annual Percentage Yield (APY) of specific vaults by offering additional tokens as incentives.

Why does the APY of vaults change?

• APY varies with market sentiment. Yields are often highest when sentiment of a particular token is low. Staying deposited consistently helps maximize returns over time.

Can I come and go whenever I want?

• Yes, there are no set lockup periods for deposits and withdrawals. The one exception to this is in the rare case of 100% utilization of a vault.

How does utilization work?

• Utilization refers to how much of the vault’s capital is currently being used in open loans by traders. The higher the utilization rate, the more APY you earn. If utilization reaches 100%, you may need to wait to fully withdraw your funds. That said, Wasabi is actively working to keep utilization below 100% and are developing additional mechanics to ensure smooth withdrawals during periods of high demand.

What are the risks associated with using vaults?

• The risks of staking on Wasabi is that we are unable to liquidate a position in a timely manner. This will lead to interest and/or principal payments being effected. We reduce the risk of bad debt through liquidatable loans and deep settlement liquidity.

What happens when I withdraw funds from the vault?

• There are no penalties for withdrawing funds from Wasabi. However, pending interest will be forfeited if funds are removed prior to the interest payment being completed.

When can I withdraw my digital assets from vaults?

• There is no lock-up period for our vaults, you are free to deposit and withdraw at any time.

What are Wasabi vaults and how is APY calculated on them?

• Wasabi’s vaults function as Margin Lending pools where users can earn native yield. The APY will fluctuate based on utilization rates. As the utilization rate increases for either longs/shorts the APY will increase. Wasabi’s ETH pools supply the long/buy side where the token pools supply our short/sell side.