FAQ - Yield Farming

SureYield FAQ

How Does SureYield Generate Fees for users?

The USDC deposited is allocated into concentrated liquidity positions across selected Uniswap V3 pairs. In return, SureYield earns fees from these liquidity positions. 80% of which are redistributed to users according to their share of the pool.

What are the factors that influence the earnings?

• Trading Volume on the Pair : Higher trading volumes generated more fees.

• Volatility of the Pair : Higher volatility creates more trading adjustments and this generates more fees.

• AI-Managed Liquidity Positions: The protocol that is built on Reinforcement Learning (RL) model uses a reward and penalty framework. Using past market dataset, it adjusts positions in real-time to optimize the USDC allocation. The protocol objective is to maximize returns and minimize impermanent loss.

What is the reward calculation Mechanics?

SureYield looks at the total fees generated through the V3 liquidity mining for the day and the total deposited amount.

This will determine the Daily interest % of the day. These rewards are proportionate to the user’s share in the pool, offering a transparent and equitable distribution based on deposited amounts.

Can I withdraw my funds anytime I want?

We have a very flexible ecosystem where users can withdraw their funds anytime they want after a 24 hour locking period that follows their USDC deposit.

Can I withdraw all my Capital at once?

In order to offer instant withdrawals, SureYield maintains a 5% liquid reserve of the total deposited USDC. This enables users to withdraw their funds without having to pull funds out from the live liquidity positions and potentially having to swap tokens and lose value in order to offer the user USDC back.

In the scenario where you would try to withdraw more than 5% of the total USDC TVL, a message as in the image above mentioning "Insufficient Reserve. Choose A Lower Percentage" will be displayed. You will have to choose a lower percentage within the 5% limit and check back in a few minutes to withdraw the rest (if your total amount is bigger).

The 5% liquid reserve is being constantly refilled with funds every time the liquidity positions rebalance (~100 times a day). When a rebalance happens and the funds are on the USDC side, the strategy contract verifies if the 5% reserve is still intact, if not, it sends USDC back to the staking contract to maintain the minimum threshold for processing withdrawals."

Can I compound or withdraw my earnings?

Yes, users can manually compound their earnings or withdraw them while keeping the initial capital untouched in the pool.

What’s the minimum/maximum USDC amount I can deposit in a single transaction?

The minimum amount a user can deposit is $1. There isn’t a maximum threshold.

How is SureYield able to sustain such a high APR?

With Uniswap V3 concentrated liquidity providing we can select very tight ranges which combined with blue chip pools such as ETH/USDC translates to high fees. On top of that our AI automatically manages the positions and rebalances them according to the market data it receives 24/7.

In other words: High volume + tight range + AI is how we succeed in having these APRs

How come the APR varies?

As the fees being earned are highly dependent on trading volume and volatility this number will fluctuate. There are some days where the volume/volatility will be high and some other days they will be low. The APR displayed is the average of the last 7 days.

Does the TVL impact my earnings?

Not at all! The APR displayed is the same for every user regardless of the amount they invest, the number of users involved or the TVL.

Where do the Monthly Rewards come from?

The rewards come from the fees generated from SureYield’s concentrated liquidity positions. 5% of the total generated fees are allocated to our Monthly Rewards Program. This is our way to thank our users for their support and engagement.

Are you planning to launch on other chains?

Yes we are! As long as the chains support the following criterias there’s nothing holding us back:

• The chain is EVM compatible

• They have a Dex built on Uniswap V3 technology

• There’s enough volume happening for users to be profitable

Is USDC the only stable coin SureYield is ever going to support?

For the purpose of making it easy and profitable we decided to start with USDC as it’s a well known stable coin and the pools it is involved in have very good volume overall.

SureYield is open to support other stable coins in the future depending on the chains and volume.