Earn Pool

hyUSD holders can earn yield by depositing into Hylo’s Earn Pool. The pool aggregates yield from all collateral pools and distributes it to depositors automatically.

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Earn Pool hyUSD

Earn Pool hyUSD (eHYUSD) is a tokenized, yield-bearing version of hyUSD that represents a user’s deposit in the Earn Pool. When users deposit hyUSD, they receive eHYUSD tokens representing their pro rata share of the pool. eHYUSD compounds yield at the end of each network epoch.

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Yield Sources

Yield is aggregated from the protocol’s underlying collateral pools:

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Total Protocol Yield

The combined yield from all collateral pools flows to the Earn Pool: $$\text{Total Yield} = \sum_{i \in C}(\text{Pool}_i \text{ TVL} \cdot \text{Pool}_i \text{ Yield Rate})$$

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Earn Pool APY

eHYUSD holders collect rewards from the entirety of Hylo’s TVL across all pools.

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APY Calculation

The per-epoch rate is: $$\text{Epoch Rate} = \frac{\text{Epoch Yield} \cdot \text{Pool Allocation}}{\text{hyUSD in Earn Pool}}$$ The pool allocation is a configurable protocol parameter that determines how much of the harvested yield flows to the Earn Pool versus the treasury. The APY is then annualized across Solana’s 182.5 epochs per year: $$\text{Earn Pool APY} = (1 + \text{Epoch Rate})^{182.5} - 1$$

Example: Multi-Pool Yield Boost

This example demonstrates how the Earn Pool offers higher yields by aggregating returns from multiple collateral pools.Hypothetical Setup:

• SOL Pool: 80M TVL, 6% staking yield
• BTC Pool: 20M TVL, 5% borrow rate
• hyUSD Supply: 70M
• hyUSD in Earn Pool: 70% (49M)

Revenue Generation:

• SOL Pool: 80M × 6% = 4.8M/year
• BTC Pool: 20M × 5% = 1.0M/year
• Total: 5.8M/year

Effective Yield (assuming all yield flows to Earn Pool depositors):$$\text{Effective Yield} = \frac{5.8M}{49M} \approx \textbf{11.8\%}$$Because only hyUSD in the Earn Pool earns yield, the effective APY is amplified beyond any individual pool’s rate.

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How Yield Compounds

Every epoch, yield generated by all collateral pools is “harvested” via a permissionless crank:

1. SOL Pool: LST yield accrues automatically as LST prices appreciate
2. BTC Pool: Borrow rate is collected from the pool’s collateral
3. Distribution: Yield is converted into newly minted hyUSD
4. Compounding: hyUSD added to the Earn Pool increases eHYUSD NAV

This mechanism causes eHYUSD to continuously appreciate against hyUSD.