Tarot Supply Vaults
Supply Vaults are lending aggregators that use automated strategies to earn yield across multiple lending pools.
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The following Supply Vaults are now open for staking:
- Tarot FTM Supply Vault (tFTM)
- Tarot USDC Supply Vault (tUSDC)
With Supply Vaults, users can automatically earn yield across multiple lending pools, with a single deposit. Supply Vaults use automated strategies to earn blended supply rates with increased liquidity.
Benefits of Supply Vaults:
- Simplified single-token staking
- Enhanced yield by supplying into multiple lending pools
- Increased liquidity for withdrawals
- Automated rebalancing and yield-optimization strategies
- Collateralization via a single, composable “tToken”
What are tTokens?
Tarot Supply Vault tokens (tTokens) represent a share of the total underlying value of a Tarot Supply Vault. Similar to the mechanics of interest-bearing tokens like Aave aTokens and Compound cTokens, tTokens continuously earn yield over time.
Each Supply Vault has its own tToken that corresponds to an underlying token. For example, if you stake FTM in the Tarot FTM Supply Vault, you receive tFTM. Similarly, if you stake USDC in the Tarot USDC Supply Vault, you receive tUSDC. Since tTokens are like a receipt, you can use them to unstake and receive your share of the underlying tokens in the Supply Vault. Also, tTokens may be transferred, used as collateral, or even composed into other protocols.
How do Supply Vaults earn yield?
Guided by automated strategies, tokens staked in Supply Vaults are supplied to top-performing lending pools in the Tarot Protocol and continuously earn fees paid by borrowers. As the total underlying value of a Supply Vault increases, so does the exchange rate of the tToken to its underlying token.
Earned yield is always denominated in the same token that was staked, so if you stake FTM, your tFTM earns yield in FTM.
Compared to other vaults, Tarot Supply Vaults offer a highly competitive fee structure:
- 10% performance fee on earned yield
- No management fee
- No deposit fee
- No withdrawal fee
- No lockups
Future Possibilities for tTokens
In the future, you may be able to provide tTokens as collateral to stablecoin lending protocols that accept interest-bearing tokens. For example, users can continue to earn yield in the Tarot Protocol while borrowing against the increasing collateral value.