Private Yield

Aave Integration

To start off, Sacred will integrate with Aave to offer private lending.
To pay out the yield gained directly from a lending platform like Aave during withdrawal might give hints as to how long assets stayed in a Sacred Box. An observer or bad actor could then calculate how long the asset has been in the Sacred box and knowing the time of withdrawal could figure out the depositing address. Therefore, breaking the link between the principal and the yield earned is essential. Sacred uses a shares-of-staked-seconds method when distributing the yield. For each Sacred pool that is created, all users’ principals are pooled together to earn yield. For each transaction, the yield is pooled together into a smart contract. You gain a share of the pooled yield rather than the yield paid directly by Aave. The yield earned is dependent on the amount of your deposit and the time that you stayed in the Sacred protocol.
After you withdraw your principal, your portion of yield continues to gain interest which is shared amongst the users who have not withdrawn their principal. This further de-links the principal that is earned from the yield and benefits the people in the Sacred pool as they continue to earn more.
You will be able to withdraw the principal and yield in separate transactions. You can even redeem your yield earned all at the same time at a later date after making multiple deposits and withdrawals in a Sacred pool. While users can redeem the YIELD accumulated all at once from principals, stagger principal redemption and NEVER do this at the same time as you will compromise your privacy!
Last modified 13d ago
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