Principal & Yield
1. Principal & Yield:
When a user deposits assets into Prime Vaults, the Accountant determines the user’s position by splitting the deposit into two conceptual components: Principal and Yield.
Principal is equal to the exact amount of assets deposited by the user.
The Yield is the reward amount accrued over time based on the protocol-defined Yield Rate, determined through a multifactor assessment that includes: strategy performance, capital demand, prevailing market rates, and asset-specific risk parameters. Despite these dynamic inputs, the Yield Rate is guaranteed to be greater than or equal to the Minimum Yield Rate, ensuring predictable and competitive returns for all depositors.
Yield can be claimed at any time, independent of lock periods applied to the Principal.
Principal Protection: The Principal is fully protected through the protocol’s multi-layered backing system, which includes:
Assets held in the StakingVault,
Deployed capital in the StrategyVault,
Reserves in the IL Reserve Fund, and
Retained earnings are maintained in the Treasury.
This structure ensures that the user principal remains intact even in the presence of market volatility or strategy-level drawdowns.
Minimum Yield Guarantee: Prime Vaults offers a Minimum Yield (Base Yield) for each supported market, ensuring that depositors receive returns that are always equal to or greater than the corresponding Benchmark Rate.
The Benchmark Rate is derived from the supply rate of the equivalent asset on Aave V3 core market, which serves as the industry-standard reference for conservative, risk-adjusted yields.
This mechanism ensures that users consistently receive competitive yields while maintaining full principal protection.
PrimeBTC
BTC
PrimeETH
ETH
PrimeUSD
(USDC & USDT)*
* PrimeUSD Benchmark Rate :
Benchmark Rate=SupplyUSDC+SupplyUSDT(SupplyUSDC×LendingAPYUSDC)+(SupplyUSDT×LendingAPYUSDT)
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