Yield Farm Scenario
Structured Tranches for Optimized Returns
Last updated
Structured Tranches for Optimized Returns
Last updated
We have created a basic simulation to estimate returns for a $100mil PST tokenization here:
Note: Numbers are only an estimation, the return is subject to actual shop performance, AMM activity etc.
Investors are free to subscribe to any of the 2 LP tranches, with Junior Tranche's principal being the return guarantee for the Senior Tranche
1 month later, the token value adjusts to reflect the required return for the 2 tranches:
Senior Tranche: 11% APY fixed
Junior Tranche: Principal as the return guarantee for the Senior Tranche