The yTEZ liquidity token, a mix of uXTZ and the native Tezos token has proven to be of great value on Tezos DeFi and has seen substantial adoption amongst Tezos enthusiasts.
The yTEZ is an active double yield liquidity pool that was developed to facilitate swaps among both tokens of the pair. In this blog, we provide some explanations for the yTEZ liquidity token and its benefit for our users and the Tezos ecosystem at large.
Benefits of yTEZ
It is worthy to note that rewards for the yTEZ pool accrue in real time and can be claimed when withdrawing liquidity. Holders of yTEZ benefit from three streams of yields as stated below:
Interest rate payments: The yTEZ pool receives interest rate payments from all uXTZ engines (uXTZ engine tez or USDt or SIRS collateral).
Trading Fees: A 0.15% swap fee exists for all trades on the uXTZ/tez swap pair, with 0.075% going to the yTEZ pool. Holders of yTEZ get a share of this fee in proportion of their pool stake.
Baking Rewards: Similar to usual baking rewards for Tezos bakers, yTEZ holders also enjoy baking rewards accrued on the Tezos tokens in the yTEZ liquidity pair.
Getting yTEZ
There are two straightforward ways to own yTEZ:
3route:
With the recent addition of yTEZ on the 3route DEX, it’s now super easy to change any token into yTEZ on the fly. Just visit 3route, connect your wallet, and you’re good to go. 3route finds the most capital effective route to swap the provided tokens to uXTZ and XTZ and deposit them as liquidity in order to get yTEZ.
youves:
Crypto enthusiasts can also obtain yTEZ by providing liquidity to the yTEZ pool through the youves DEX. You can do this the usual way of adding liquidity to a pool or by using the “Provide only tez” feature.
Head over to youves liquidity page and try it out.
Balancing the yTEZ Pool — Your Contribution Matters.
As of now, the yTEZ pool has an imbalance with over 70% of the pool in uXTZ. To ensure smoother trades, we call on Tezos enthusiasts and liquidity providers who intend to provide liquidity on this pair to do it in this manner to help balance the pool.
When providing liquidity on the youves platform, make sure to use the provide only tez feature. By doing that, youves does a swap of tez for uXTZ.
This increases the amount of tez relative to uXTZ in the pool, and with the “provide liquidity operation” which automatically goes along with the swap operation, both tokens are added in the ratio of which they are in the pool. In the end the pool approaches a balance.
Conclusion
yTEZ offers a simple yet effective way to maximise your Tezos gains. Whether you’re new to the DeFi game or a seasoned investor, yTEZ opens up new possibilities for earning yields within the Tezos ecosystem.
