Flow of Funds

The flowchart below outlines the process of deploying assets, generating yield, and distributing it.

1. User A The process begins with User A, who decides to participate in the yield generation program by committing their assets to a yield generation contract. User A initiates the process by depositing their assets into the contract.

2. Yield Generation Contract The assets from User A are deposited into a yield generation contract, which is a smart contract designed to manage the yield generation process. It ensures that the assets are securely held and deployed according to predefined terms.

3. Custodians The deployed assets are transferred to custodians, such as CEFFU and Copperco. Custodians are responsible for securely holding the deployed assets and ensuring their mirroring on centralized exchanges.

4. Centralized Exchanges After the custodians, the assets are mirrored on centralized exchanges, specifically Binance and OKX. These exchanges provide the necessary infrastructure for executing arbitrage trades, enabling liquidity and access to various markets.

5. Yield Generation Arbitrage On centralized exchanges, the assets are utilized for yield generation arbitrage. This involves executing strategies to take advantage of price discrepancies across financial instruments. Refer to the Execution for Stables section for further explanation.

6. Yield Deposited to User Account Profits generated from arbitrage activities are calculated, and the resulting yield is deposited into User A’s account every 7 days, ensuring users receive regular returns on their deployed assets.

This process ensures that users’ assets are securely managed and effectively utilized to maximize returns through arbitrage strategies on centralized exchanges. Each step is designed to maintain the integrity, security, and profitability of the staking and yield generation process.