Documentation › Where yield comes from
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.
One stream runs whether or not anyone trades. The other only pays when they do.
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.
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