🏦Yield on Collateral

Phase aiming to be a liquidity platform must provide users with tools to use their liquidity. Borrowing cash is the core instrument of Phase, but to achieve higher capital efficiency we also use that collateral to earn yield. This yield must come from a source where losses should be small, unlikely, or impossible. Smart contract hacks, exploits, and rugs do happen, but that is a risk you take with DeFi. Phase aims to ensure the instruments we use to generate yield on the user's deposits are as safe and well-backed as possible. Phase is also aiming to build its own in-house financial instruments, giving more use for CASH and providing more secure and undiluted ways to earn with collateral. There are multiple ways Phase could provide yield from one-sided deposits. The amount available on the mainnet launch is still to be determined, but we will keep adding them as time goes on. Some of the options include:

• Providing collateral on platforms such as Aave and Compound

• One-sided yield farms on tools such as Beefy

• First-party financial instruments