Yeti Finance

Introduction

Yeti Finance allows users to borrow YUSD, a USD-pegged stablecoin by trustlessly supplying arbitrary whitelisted crypto-assets as collateral with interest-free liquidity and a low minimum collateralization ratio of 110%. Yeti Finance, similarly to Liquity, uses a pooled liquidation mechanism that shifts risk and capital requirements from liquidators to Stability Pool depositors, who stake YUSD and earn revenue from liquidations without having to interact with complex mechanisms such as collateral auctions. Along with Stability Pool direct liquidations, the protocol also incorporates a redemption mechanism\nthat effectively creates a lower-bound on the price of YUSD. However, unlike Liquity, which is limited to accepting only ETH as collateral, Yeti Finance allows the user to supply a portfolio of a wide range of assets to be used as collateral. This new design implies several major implementation changes from Liquity's.

Results and Findings