12. Yield Aggregator - ubiquity/ubiquity-dollar GitHub Wiki

The Yield Aggregator is a vault of custom yield strategies that users can take advantage of to earn yield in uCR. Because we are offering Ubiquity Credits for these strategies, users can potentially earn more yield compared to traditional vault strategies.

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At its core, the Ubiquity protocol is designed to be highly responsive to market conditions in order to maintain the Ubiquity Dollar’s intended peg at $1.

A stablecoin is only as good as its use-cases, and the Ubiquity team is excited to present our Yield Aggregator, which will offer users double the yield on their crypto assets while building up collateral reserves for uAD.

How It Works

Users may deposit their choice of stablecoins (DAI/USDC) into the Yield Aggregator
A 10% Deposit Fee is levied and accrues to the UBQ Treasury (Collateral Reserve)
Yield Aggregator deploys stablecoins into conservative yield farming strategies like Yearn/AAVE with strategies vetted through Ubiquity governance.
The yield generated is kept by the protocol and further augments the uAD collateral reserve.
Users receive DOUBLE the underlying yield in the form of uCR tokens. uCR tokens are perpetual debt tokens issued by the Ubiquity protocol that can be redeemed for 1 uAD when the stablecoin trades above $1.
To ensure that yields are competitive, some of these custom strategies may have limits or only be available to Ubiquistick holders.

Advantages For Users

Financial Incentive — The Yield Aggregator offers 2X the yield vs directly farming the underlying protocols.
Simple UX — The Yield Aggregator is a fire-and-forget solution for users looking for attractive stablecoin yields. Our strategists will deploy the deposited assets in the highest-yielding farms after approval from Ubiquity DAO participants.

Benefits to the Ubiquity Protocol

Collateral Reserves will allow for partial collateralization of uAD as planned for Q4.
The Yield Aggregator will allow us to target a broader base of DeFi users looking for a simple stablecoin yield solution. This opens up possibilities for further engagement with the protocol in the future.