💸Sources of Yield
Maximizing Your Earnings Potential
FABNT Vaults offer users a multitude of opportunities to generate attractive yields across various sources within the platform. Let's explore the five key sources of yield available on FABNT Vaults:
Option Premiums from FABNT Vaults: FABNT Vaults enable users to sell out-of-the-money (OTM) European cash-settled options to accredited market makers. By participating in FABNT Vaults and opening short-call or short-put positions, users can generate yields in the form of option premiums. These option premiums are derived from the sale of options and provide users with a consistent income stream.
Lending Interest from Lending Market: FABNT Vaults introduced the Lending Market, where users can deposit their Basic Vault LP Tokens and collateral assets. By providing liquidity in the Lending Market, users can earn lending interest. Lenders generate yields by lending their assets to borrowers who require leverage to trade or engage in other strategies. This feature allows users to maximize their earning potential while contributing to the liquidity of the platform.
Trading Fees from AMM: Users who provide liquidity on the Automated Market Maker (AMM) in FABNT Vaults are entitled to a share of trading fees. By participating in liquidity pools, specifically $XYZ/$XYZ-C or $XYZ-P/$USDC pools on the AMM, users can earn a 50% share of the trading fees generated by the platform. This incentivizes users to contribute liquidity and actively participate in the vibrant trading ecosystem.
Potential $FABNT Token Incentives: In the future, FABNT Vaults may introduce the $FABNT token, which can be earned as incentives for users who contribute trading volume and liquidity within the platform. By actively engaging with FABNT Vaults and generating volume, users have the potential to earn $FABNT tokens, providing them with additional rewards and benefits within the ecosystem.
Potential Additional Token Incentives: FABNT Vaults also offer the potential for additional token incentives. Users who contribute trading volume and liquidity on specific underlying assets may be eligible for additional token incentives. These incentives can be provided by other ecosystems, such as Layer-1 blockchains, seeking to stimulate activity on FABNT Vaults. This feature presents an opportunity for users to earn additional tokens and maximize their overall earnings.
FABNT Vaults provide users with a diverse range of sources to generate attractive yields. By participating in options trading, providing liquidity in the Lending Market, earning trading fees, and potentially receiving token incentives, users can unlock the full potential of their investments. Join FABNT Vaults today and start maximizing your earnings potential across multiple yield sources.
Last updated