Where yield comes from

Two sources, both visible on chain.

• 01Lending yield. While capital rests it sits in an allowlisted ERC-4626 vault, where the hook is an ordinary depositor and earns whatever that vault pays its depositors. Every live pool rests its USDG leg in Steakhouse USDG. Twofold operates no vault and is backed by no vault's assets; it is a depositor there like anyone else.
• 02Trading fees. Every swap through a Twofold pool pays the pool's swap fee, and the hook captures it during the same transaction that moves the liquidity. The fee is fixed when a pool is created and can never be changed: 0.3 percent on the stock and ETH pools, 1 percent on TWO/USDG and 0.01 percent on USDG/USDe.

We publish no APY projection. The vault rate shown on this site is the trailing rate the Steakhouse USDG vault has actually paid its depositors, measured from its share price over a rolling window, and it moves. Fee income floats with trading volume, which is why the pool list shows what each pair traded rather than a number we made up. Neither figure is a promise.

How to read the yield figure on a pool card

Each pool card leads with one number, and it is measured, not modeled. It adds two things: the vault rate on the USDG leg, and the swap fees the pool collected in the last 24 hours, annualized on the depth sitting in it right now. A pool that took no trades shows the vault rate alone, because that is all it paid that day.

The fee part can be large. A day of aggregator flow through a small pool at a 1 percent tier can annualize to hundreds of percent, and the card will say so, because that is what the pool earned per dollar of depth that day. It is a trailing rate, not a forecast. Volume comes in bursts, so the figure moves with each day's trading, and a pool that is busy today may be quiet tomorrow. A pool holding under 1,000 USDG shows no fee component at all, since a few trades against a seed-sized reserve produce a quotient that says nothing.

Fees are also only half the story on a moving pair. When traders buy one side hard, the pool sells that token on the way up and ends the day holding more of the other. The fee income is real and stays in the reserves, and the change in what the reserves hold is the usual cost of providing liquidity. The earnings line on your position shows both, per token, so you can see the fee against the mix.