Yield Generation

HedgeCore generates sustainable yields for hedgers through integration with Venus Protocol, the leading lending platform on BNB Chain. This approach provides transparent, market-based returns without relying on token inflation or unsustainable incentives.

How Yield Generation Works

1. Deposit Flow

When you deposit USDC into HedgeCore:

Your USDC → StakeableAsset → StrategyRouter → VenusUSDVault → Venus Protocol

2. Venus Protocol Integration

• Your USDC supplies to Venus Protocol's lending pool
• Borrowers pay interest to access these funds
• Interest accrues in real-time as vUSDC appreciates
• No impermanent loss risk (single-asset lending)

3. Yield Collection

• Venus yields accrue automatically in vUSDC token
• Protocol collects yields periodically
• 7% protocol fee retained for operations
• 93% distributed to sUSD holders

Current Yield Metrics

Venus Protocol APY

• Current Rate: ~7-8% APY (variable)
• Update Frequency: Per block (~3 seconds)
• Verification: Check Venus Protocol directly

Your Net APY

Your APY = Venus APY × 0.93

Example with 7.23% Venus APY:

• Venus gross yield: 7.23%
• Protocol fee (7%): 0.51%
• Your net yield: 6.72%

Why Venus Protocol?

Security

• Battle-tested since 2020
• Multiple audits by leading firms
• Over $1B in TVL
• Proven track record on BNB Chain

Sustainability

• Real yield from borrower interest
• No token emissions required
• Market-driven rates
• Transparent on-chain data

Efficiency

• Automated yield accrual
• No manual claiming needed
• Gas-efficient operations
• Compound interest built-in

Yield Transparency

On-Chain Verification

You can verify yields directly:

1. Check Venus Protocol's supplyRatePerBlock()
2. Calculate annual rate: rate × blocks_per_year
3. Apply 93% to get your net rate

Frontend Display

The UI shows:

• Current Venus APY (gross)
• Protocol fee percentage (7%)
• Your net APY (after fee)
• Historical yield data

Risk Considerations

Venus Protocol Risks

• Smart contract risk (mitigated by audits)
• Variable interest rates
• Borrower default risk (mitigated by overcollateralization)

Mitigation Measures

• Only using established protocols
• Single-asset exposure (no IL risk)
• Conservative fee structure
• Emergency withdrawal mechanisms

Future Yield Strategies

While currently focused on Venus Protocol, the StrategyRouter architecture allows for:

• Additional lending protocols
• Yield aggregation strategies
• Risk-adjusted allocations
• Community-proposed strategies

All subject to careful review and governance approval.

Yield Distribution Schedule

Yields distribute to sUSD holders through:

• Periodic rewardMint() calls by operator
• Proportional distribution based on holdings
• Same lock mechanics as deposits
• Transparent on-chain events

Summary

HedgeCore's yield generation through Venus Protocol provides:

• Sustainable returns: Real yield from lending, not inflation
• Transparency: All rates verifiable on-chain
• Security: Battle-tested protocol integration
• Fairness: 93% of yields go to participants
• Simplicity: Automatic accrual, no complex strategies

This approach ensures that your deposited USDC generates real, sustainable yields while maintaining the security and simplicity that HedgeCore prioritizes.