USD0++ Alpha Yield

USD0++ and Yield mechanism

Users who wish to gain exposure to Alpha Yield in the form of $ECLIPSE tokens must lock their USD0 in a USD0 Liquid Bond (USD0++) for a specified period. In return, they have several options available to them.

1. Claiming Yield (3): The holder of the Liquid Bond can claim their yield daily in the form of ECLIPSE tokens.

2. Base Interest Guarantee (4) : The holder of USD0++ is guaranteed a yield equivalent at minimum to the yield of the USD0 collateral (Risk-free yield). To achieve this, the user must lock their USD0++ for a specified period. At the end of this period, the user can choose to claim their rewards in the form of ECLIPSE tokens or the risk-free yield in USD0.

3. Return of Principal: At the end of the bond's maturity period, the holder receives their principal in the form of the initially locked USD0.

Yield Distribution and Governance

The yield from Liquid Bonds is distributed natively in the form of ECLIPSE tokens, the governance token of the Eclipse AI protocol. This yield is speculative due to the nature of the ECLIPSE token, referred to as Alpha Yield.

Superior Yield Model

Eclipse AI’s model is designed to outperform the native risk-free yield of the underlying asset. It incentivizes early entrants and ensures a sustainable flywheel effect.

Alpha Yield

The yield from USD0++ is called Alpha Yield (α-yield) because it includes an additional token with its own volatility and pricing. This provides exposure to the issuer’s success, not just the underlying yield. This financial engineering ensures that ECLIPSE offers significantly better rates than the asset’s yield alone.

Advantages of ECLIPSE

The ECLIPSE token's value increases with the Total Value Locked (TVL). Early participation is theoretically highly beneficial, as the rewards are greater for those who join sooner.