yzPP Reward Mechanism

  • yzPP’s APY is composed of two components: i) the base yield from syzUSD, ii) and an additional yield budget allocated by the protocol specifically for yzPP.

  • For example, if syzUSD’s base yield is 40%, and the protocol allocates an annual budget of $1 million for additional yield while yzPP’s total value is $5 million, then the additional yield contributes 20% APY to yzPP holders — bringing the total APY to 60%.

  • The budget for yzPP's additional yield is set weekly by the protocol.

  • The budget for the week (Wed 0400 UTC to Wed 0359 UTC) is decided every Wednesday.

  • yzPP yield is estimated to be double that of syzUSD yield based on a 130% collateral ratio.

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