🇪 ELMA
Visit the Dapp
eliteness.network/elma
How it works?
Underlying Assets (UT)
The base-level Assets accepted by a certain pool. These are also called UT, or Underlying Tokens. Depositing 1 UT on ELMA generates 1 PT + 1 YT. Redeeming 1 PT + 1 YT gives you 1 UT back.
Underlying Markets (LM)
Lending Market where the Underlying Assets are Rehypothecated to. The LM in ELMA stands for these Lending Markets.
Principal Tokens (PT)
Depositing 1 unit of an Underlying token on ELMA results in 1 unit of PT (Principal Tokens), which is sent to the Depositor as a receipt of the 1 Underlying Asset deposited. PT can be redeemed back to the UT anytime, subject to availability of Cash in Reserves.
Yield Tokens (YT)
Depositing 1 unit of an Underlying token on ELMA also results in 1 unit of YT (Yield Tokens) besides the PT. Holding these YT pays the bearer all the “Yield” earned by Rehypothecating the UT (underlying token) into a LM (lending market). However, unlike PT, these YT are virtual and not delivered to the Depositor, and are instead rented, along with their Yield rights, to the ELMA Protocol.
Deposits
Market Capitalization of PT, or simply the total USD value of Assets deposited by Lenders via ELMA. These are further rehyp’d into the corresponding LM.
Cash Reserves
Cash (in USD) is the amount of UT unused & available in the underlying market to redeem PT. Borrowers on the LM reduce Cash, while Lenders (ELMA included) increase it.
YT APR
Yield Token (YT) APR is the Yield earned by depositing PT’s underlying Asset in the underlying Market. ELMA depositors dont earn this, but ELMA (the protocol) does. To earn this, you can deposit directly at the underlying market.
PT APR
Principal Token (YT) APR is the Yield earned by Staking PT on the ELMA Protocol Gauges directly. Users may choose to stake PT on ELMA or use their PT elsewhere outside ELMA.