FAQ

What is a yield maximizer?

A yield maximizer is a smart contract that automatically follows a set strategy. When an asset is deposited, the yield maximizer vault follows a hard-coded chain of actions created with the intention of yield-farming at an amplified APY (annual percentage yield).

What is TVL (Total Value Locked)?

TVL is the total value of current assets deposited within each Dyson strategy.

What is a Vault?

A vault is where a user’s assets go when they’re deposited. These assets are then used to generate and maximize yield rewards for depositors using Dyson’s strategies.

What is an ALM (Automated Liquidity Manager)?

An ALM (Automated Liquidity Manager) is a type of vault where an external protocol’s vaults (e.g. Preon’s Nebula vaults (tag Preon website)) are automatically managed by an underlying strategy to generate yield.

What is an LP (Liquidity Pool)?

A liquidity pool is the pairing of tokens that enable trading on an exchange.

What is APR (Annual Percentage Rate)?

The percentage of return an investment would yield over the course of an entire year.

What is APY (Annual Percentage Yield)?

It is the real rate of return earned on an investment, taking into account the effect of compounding interest.

What is IL (Impermanent Loss)?

IL (Impermanent loss) is when there is a temporary reduction in LP (Liquidity Pool) value caused by the changes in market price of the assets relative to their initial deposit value when held in a liquidity pool. Please explore our video explanation of IL to learn more.