A deeper dive into how the yield works

Let’s take a look at how the yield system works for qETH.

We have broken down the 10% APY into two different currencies: ETH and AQTIS:

  • 7.5% APY in native ETH

  • 2.5% APY in AQTIS tokens.

If User A puts $1,000 USD worth into qETH, a user would be entitled to claim $100 USD annually in rewards.

Of the $100 USD, $75 of these rewards would be in native ETH and $25 of the rewards would be in AQTIS tokens.

In the above example, it is based on the token not changing its value. In crypto things change rapidly. In the event of price fluctuations, the yield value would change too. Let’s look at an example.

In the event the price of AQTIS increases, the AQTIS portion of the yield would also fluctuate. If User A initially had 25 USD worth of AQTIS tokens, and their average value increased to $100 USD, the total yield would consist of $75 USD in ETH plus $100 USD in AQTIS tokens. This would be equal to a 17.5% yield.

Conversely, if the value of AQTIS tokens were to decline by 50% during this period, the $25 USD worth of AQTIS tokens would reduce to $12.5 USD. In such a scenario, the total rewards would still encompass 75 USD in ETH, but the AQTIS tokens would contribute only 12.5 USD. This would be equal to an 8.75% yield.

In this example, the number of tokens User A received as rewards remains constant during this period; it's the value per token that fluctuates.

In other words, the token yield remains constant, but the $ value can vary.

Last updated