What protects Royco Senior in @AvantProtocol's savUSD market?
Of $116.7M avUSD outstanding, $97.1M is staked as savUSD, with $6.67M in Royco tranches.
Two independent layers absorb losses sequentially:
- Avant's Junior capital and reserves
- Royco Junior
Here's how the protection works:
- Avant's ~$16M Junior capital and reserves absorb losses first.
- Royco Junior then covers the first 24% of savUSD losses, above its 20% minimum.
Royco Senior is only affected after a ~34% total drawdown.
Explore the market and deposit into Senior ↓ royco.org/market/43114/0x724…
28.2% of cover against a 15% minimum: 1.88x what the market needs.
That is the apyUSD market from @apyx_fi. Coverage is the Junior's share of the market which takes any loss before the Senior does.
That cover has been tested. In June apyUSD fell about 21%.
Royco’s apyUSD Senior tranche looks compelling.
At 90% target utilization, @apyx_fi 's Seniors have a ~16.7% first-loss buffer. At 53.45% utilization, it's 28.1%.
STRC would have to fall to roughly $65.86 before exhausting today’s buffer, versus $79.38 at target.
The Junior took the loss, and the Senior NAV never printed a lower hour.
Deposit into the Senior behind that Junior: royco.org/market/1/0xcfbdea0…
Displayed senior APY: 13.52% vs. 13.83% underlying.
68% more buffer than at target. Same yield-share terms.
royco.org/market/1/0xcfbdea0…
What if you'd deposited $10,000 in a Royco Senior on day one?
- apyUSD (@apyx_fi), 178 days ago: $11,779
- savUSD (@AvantProtocol), 218 days ago: $10,443
- eEARN (@EmberProtocol), 169 days ago: $10,358
- TR Basis Trade (@PikuFinance), 88 days ago: $10,305
And over a year? 👇
Over a year at that pace:
- apyUSD: 36.47%
- savUSD: 7.43%
- eEARN: 7.74%
- TR Basis Trade: 12.63%
apyUSD stands out. When it depegged in June, the Junior covered the Senior's dollar loss with extra apyUSD. The peg came back, and that extra rose with it.
See for yourself 👇
The four Seniors, from day one:
- apyUSD: royco.org/market/1/0xcfbdea0…
- savUSD: royco.org/market/43114/0x724…
- eEARN: royco.org/market/1/0x36c1d7c…
- TR Basis Trade: royco.org/market/1/0x48fe2f6…
How much can each market lose before losses reach the Senior tranche?
- apyUSD: 28.3%
- savUSD: 24.0%
- hBTC: 14.8%
- eEARN: 13.2%
- TR Basis Trade: 10.2%
That's the first-loss protection behind each Senior position.
Take the protection or earn for providing it.
@apyx_fi : royco.org/market/1/0xcfbdea0…
@avantprotocol : royco.org/market/43114/0x724…
@Syntetika : royco.org/market/8453/0x586d…
@EmberProtocol : royco.org/market/1/0x36c1d7c…
@PikuFinance : royco.org/market/1/0x48fe2f6…
Five months of the eEARN market on Royco, in one chart.
Median 7-day APY since launch:
- Junior 15.31%
- eEARN 8.87%
- Senior 7.93%
The Junior’s median is about 1.7x what @EmberProtocol 's eEARN earns on its own.
If you want the extra yield, the eEARN Junior is live: royco.org/market/1/0x36c1d7c…
If you want first-loss cover, the eEARN Senior is live: royco.org/market/1/0x36c1d7c…
Some of the best yields onchain are locked.
Take reUSDe, which only allows quarterly redemptions.
A Day market can make it liquid, with Seniors paying a liquidity premium while still earning 9.89%, compared to 6.84% on @re 's liquid reUSD.
Read how Royco could unlock this:
The @Syntetika hBTC market is in its Observation Period.
hBTC's NAV updated with a small loss. The Observation Period gives the asset time to recover, so the Junior only absorbs losses if they don’t recover after 30 days.
Watch the video below to see exactly how it works:
See the hBTC market: royco.org/market/8453/0x586d…
Top 3 Royco markets by APY right now.
Senior:
@apyx_fi apyUSD 13.54%
@MoriniCapital TR Basis 10.09%
@EmberProtocol eEARN 8.15%
Junior:
@USDai_Official sUSDai 19.30%
eEARN 15.66%
apyUSD 14.57%
Apyx and Ember put their strategies in the top 3 of both tranches.
The Observation Period protects the Junior. Protected Exit protects the Senior.
With the @Syntetika hBTC market in its Observation Period, here’s how its Protected Exit value works:
See the hBTC market:
royco.org/market/8453/0x586d…