Auto compounds with xtetuQi
The new xtetuQi is live!
Understanding the rewards
The tetuQi strategy is based on QI locking and 90% of the rewards earned by the strategy are wrapped to tetuQi tokens and distributed to tetuQi holders while 10% are distributed among Profit Share, Protocol Owned Liquidity and Investment Fund. tetuQi receives tetuQi rewards but it does not auto compound to avoid problems with the 1:1 peg.
tetuQi-QI LP
tetuQi-QI LP strategy works like a standard TetuSwap farming strategy and in addition sells swap fees for TETU.
Due to the nature of TetuSwap strategies, the assets must be allocated in some vault, in the case of tetuQi LP, half of the assets are allocated in xtetuQi, so 50% of the LP position is auto compounding tetuQi through xtetuQi.
You can easily join tetuQi LP:
How xtetuQi will work
xtetuQi will work similarly to tetuQi. The difference will be in how the rewards will be distributed and the productivity of vaults, users who participate in tetuQi vault will be able to stake it into xtetuQi and enjoy auto compound rewards but with lower returns compared to tetuQi.
xtetuQi will sell TETU rewards and compound tetuQi. xtetuQi will be useful for users who don’t want to wait the 28 days or are not interested in boosting rewards.
xtetuQi profit
The approximate profit of xtetuQi will be approximately 30% of tetuQi, so that after 28 days of rewards, xtetuQi will generate approximately 300 TETU worth of rewards in underlying asset for every 1000 TETU earned on tetuQi.
xtetuQi rewards will be distributed periodically and they will be paid in the underlying asset, through auto compound and without having to wait for 28 days. xtetuQi works like an interest bearing token that increases in value as earnings accumulate.
Peg
The peg of tetuQi and QI is held at 1:1 through market arbitrage and the price of the tetuQi-QI LP token slowly increasing over time. There is also the structural factor that to get 1 tetuQi it is necessary to deposit 1 QI, so if the price of tetuQi drops too much users will prefer to buy tetuQi in the market instead of depositing.
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SOURCE: https://medium.com/@tetu.finance/auto-compounds-with-xtetuqi-77620f5d7dec
