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Vane

Protocol

Yield source

Blade interest comes from a yield source: an on-chain venue where the protocol places stablecoin deposits. The venue has not been announced; it will be announced before launch. This page sets out what is known now, the criteria the venue must meet, and what will be published.

Where blade interest comes from#

Deposits made into blades are placed with the yield source, apart from an amount kept liquid to serve breaks and maturities. The yield the venue generates is shared among locked blades pro rata to principal and time locked. It accrues over each term and is paid at maturity, net of the protocol fee.

Vane does not create interest. It can only pass on what the venue produces, minus the protocol fee. The accrual formula is in How interest accrues.

Status: the venue is announced before launch#

The yield venue has not been announced, and this documentation does not name candidates. It will be announced before launch, together with the details listed below, on these docs and on @VaneGiwa (opens in a new tab).

Criteria a yield venue must meet#

  • Stablecoin-denominated. Deposits and yield are in USD stablecoins, so blade accounting does not depend on a volatile asset.
  • Verifiable on-chain. Positions and yield can be checked on-chain by anyone, without relying on off-chain reports.
  • Able to return principal. The protocol must be able to withdraw principal when blades are broken or mature. A venue that can hold funds back for long periods is not suitable.
  • Transparent risk. The venue's risks, including its contracts, its collateral, its liquidity and its governance, must be documented and open to assessment.

What will be published before launch#

  • The venue. Which venue is used, and how the protocol interacts with it.
  • The liquid portion. How much of the deposits is kept liquid, outside the venue, to serve breaks and maturities, and how that amount is managed.
  • How interest is measured. How yield is read from the venue and attributed to blades over time.

Interest is variable and can be zero#

The rate is set by the venue, not by Vane. It changes with conditions at the venue, is never fixed or guaranteed, and can fall to zero. Funds kept liquid to serve breaks and maturities may earn little or nothing, which lowers the yield shared among blades.

Any rate shown on this site, in examples or in the simulator, is illustrative and is not a forecast.

How losses at the venue can affect principal#

A break returns the full principal, and a maturity returns principal plus net interest, only if the funds are there to return. If the venue suffers a loss, for example through an exploit, bad debt or the failure of an asset it holds, or if it cannot return funds when asked, principal can be reduced or its return delayed. How the contracts handle such a shortfall will be documented with the deployment.