Tetu - 73%

Tech Review February 15, 2022

Ryan John Barcelona avatar
Written by Ryan John Barcelona
Updated over a week ago

Tetu is a Web3 asset management protocol built on Polygon that implements automated yield farming strategies in order to provide investors with a safe and secure method of receiving high and stable yield on their investments. Tetu's innovative solutions provide automated yield aggregation and distribution through xTETU. Tetu's development focus is to build a self-sustaining yield management ecosystem that provides stable and attractive yields for users. Tetu aims to make the development of automated and decentralized Yield management solutions the main structure of the protocol.

The Tetu system is based on three principles:

● Tokenization of revenue: xTETU token will always have a part of profits. The personal share of profits of users are equivalent to their ownership of TETU supply. It is not about the price of TETU, but revenue of the protocol.

● Income generation: TETU system naturally creates an accumulation effect to xTETU holders, TETU's tokenomics will exert a scarcity dynamic over time. Eventually, the market will realize that the APR of xTETU is not simple rewards from emissions, but a stable income correlated to Tetu protocol ability to generate income.

● Value of yield: Stable income provided by xTETU must be the main driver of TETU price. The value of the TETU token is associated with its ability to generate income.

Tetu's suite is made of two different solutions: Tetu, the yield management platform where users earn income by yield farming that also offers more advanced strategies such as folding strategies based on lending protocols, and Multi strategy which currently achieves even higher yields through the use of three Defi protocols, and TetuSwap, a decentralized exchange providing capital efficiency for traders and liquidity providers.

Both solutions interact with each other to maximize users' efficiency: liquidity providers' gains are increased on TetuSwap through the automated deposit of LP assets in Tetu's yield farming vaults and when swaps take place, TetuSwap removes the optimal amount of assets from the vaults to perform the swap.

Tetu hasn't been built from the ground up, but is instead reusing battle tested code from different leading protocols of the DeFi ecosystem. Protocol's developer made the choice to reuse code from Yearn and Synthetix for their yield farming solution and Uniswap for their decentralized exchange. Multiple additions to the code have been done since its inception however, and Tetu became a proper protocol on its own.

In addition to that, the core team has a good experience with DeFi solutions and has been contributing to other protocols. The multiple audits the protocol went through, 4 in total, add another good point to the project and shows that the team put users safety to a high level of priority, even though audited protocols have been exploited in the past.

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