Perpetual Yield Tranches
Products > Perpetual Yield Tranches
In the financial world, a tranche represents a product split that carries specific features like risk, yields, duration. They are often arranged together to create pools of diversified products or a basket of investments with similar characteristics (risk-return related).
Based on this concept, Idle launched its own tranches primitive: Idle Perpetual Yield Tranches.
Each tranched asset has its own yield source, with two risk-adjusted investment profiles (Senior and Junior).
Taking DAI tranche based on the IdleDAI Best-Yield pool as an example, DAI funds deposited into the Senior and Junior class of that Idle-based product are aggregated into a single pool and then deployed into IdleDAI Best-Yield strategy.
Tranches allow users to enjoy DeFi yields with built-in protection on deposits by holding the Senior class, and leveraged yield with the Junior one.
Users can decide the strategy according to their risk profile: they can deposit funds into two different tranches (Senior or Junior) in exchange for a token indicating their claim
Last modified 2mo ago
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