BasketDAO Yield Distribution Methodology

How BDPI increases in value and xBASK holders get paid

2 min readApr 22, 2021

Where does the yield come from?

BDPI holds yield bearing tokens, in the form of cTokens from Compound, aTokens from Aave and xSushi.

These tokens accrue yield in a variety of ways.

  • cTokens appreciate in value and are able to claim COMP rewards
  • aTokens are streamed more aTokens
  • xSushi appreciates in value

We refer to the claimable COMP rewards and streamed aToken as harvestable yield.

What is the yield distribution

The initial plan was to distribute harvestable yield as detailed below:

However, the BasketDAO Treasury has kindly agreed to sponsor BASK holders (😘) and will be donating its portion of yield for the foreseeable future. This means that the current yield distribution is given by the diagram below:

How will the yield be distributed?

To begin with, our distributor contract will distribute harvestable yield once a month alongside our monthly rebalance.

70% of harvestable yield will be used to purchase tokens and sent back to BDPI.

30% of harvestable yield will be used to buy BASK and distributed to xBASK holders.