Altitude Docs
Launch App
  • GENERAL
    • Protocol Overview
      • Optimizing Borrowing Rates
      • Actively Managing Idle Capital
      • How do users interact with a vault?
        • Deposit
        • Borrow
        • Withdraw
        • Repay
        • Claim Rewards
        • Other user functions
      • Vault Health
      • Ingress Control
    • Yield Generation Process
      • What is a vault?
      • How much is deployed into yield farms?
      • When do we interact with Yield Farms?
        • Migrations
        • Liquidation of vault
      • How are yields recognised?
      • How are yields distributed?
      • How do we determine which Yield Farms to use?
    • The ALTI Token
    • FAQ
      • Early Rewards Program
      • About Altitude
      • What milestones have been hit so far by the Altitude Team?
      • What are the advantages of using Altitude?
      • How does it work?
      • What Oracles is Altitude using to determine the health of the vault?
      • When will Altitude enable more vaults?
      • How are yields generated?
      • How do my rewards change when I interact with the vault?
      • Who determines where unutilized assets are deployed?
      • How will Altitude work at times of high volatility?
  • Integrations
    • Lenders
  • Yield generation
  • Decentralized Exchanges
  • Smart Contracts
    • Vaults & Contracts
    • Audits
    • Security
    • Governance
  • Oracles
  • Resources
    • Risks
    • Terms of Service
    • Disclaimer
  • Contacts
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  1. GENERAL
  2. Yield Generation Process

How much is deployed into yield farms?

Once a user has successfully supplied the supply asset into a vault, this is added to the vault position with an external lender and can subsequently be used as both:

  1. collateral for a loan by the user

  2. collateral used for yield generation on behalf of users

For each vault, a vault target threshold (vtt) is configured, which is the loan-to-value ratio the vault will aim to rebalance to during certain transactions (see more later in document).

The amount of assets deployed into yield farms is determined by the following formula:

$$ vTAA = (vS * P * vTT) - vUB $$

where:

  • vTAA = vault target active assets is the target amount deployed into yield farms

  • vS = vault supply assets, the total amount supplied by users into the vault

  • P = price of the borrow asset

  • vTT = vault target threshold, determining how much to deploy in yield farms

  • vUB = vault user borrows, total amount of borrow assets borrowed by users

Factors such as price movements and changes in either the amount of supply assets and/or user borrows will affect vault target active assets.

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Last updated 1 year ago

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