Fix your future yield.
Tempus provides efficient fixed-yields on various yield-bearing tokens (“YBT”) on both the Ethereum and Fantom networks. The TempusAMM allows users to deposit their YBT into a smart contract, locking in a fixed rate with selected maturity dates. This eliminates the need to worry about falling interest rates and returns on your assets.
- 1.Deposit the yield-bearing token (YBT) or base asset into the Tempus Smart Contract with a certain maturity date.
- 2.The Tempus contract then splits the deposited asset into tokenized Capital and Yield tokens.
- 3.The Tempus contract swaps all yield-bearing tokens for Capital tokens to lock in future yield.
Users can hold the Capital tokens until maturity, at which point the principal is fully redeemable at a 1:1 ratio. Redeeming at maturity ensures that the user gets the maximum fixed yield.
Users that hold the tokenized Capital tokens are always able to redeem from their fixed rate pools before maturity. Through the TempusAMM, users can swap their Capital tokens for the underlying yield-bearing tokens. Redeeming early would mean you forgo your future yield for today.