Earning feUSD yield

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Introduction

Felix users can earn stablecoin yield on their feUSD, coming in the form of borrower interest and liquidation proceeds. To earn this yield, users must deposit feUSD into a Felix vault.

Step 1: Connect Wallet

To begin, press ‘Connect Wallet’ and select your preferred wallet provider corresponding to the wallet holding tokens intended to deposit as collateral.

Step 2: Select Vault to Deposit

Once connected, navigate to the ‘Vault’ page where you’ll find the ‘Vault’ table, which lists the possible vaults that users can deposit into. You will be able to see the total deposited amount, the earn APY, and more.

The purpose of the vault serves as a liquidation backstop for outstanding feUSD debt. Users take on bad debt risk and are compensated in the form of borrower interest and liquidation proceeds.

Step 3: Select amount to collateralize and feUSD borrow amount

In the modal that pops up on the right, select the amount of feUSD that you want to deposit.

Step 4: Approve Token Transfer

After clicking the confirm button, a modal will appear which will prompt a transaction or message signature request in the connected wallet. In order to transfer tokens on the Hyperliquid L1 network, the Felix smart contract must be granted an allowance to transfer tokens from the connected wallet address. Approvals can be performed through transaction.

Step 5: Perform Deposit Transaction

After the approval transaction, there will be one more transaction to confirm the transaction of depositing your feUSD into a Felix Vault. Once you click confirm, you should be good to go in a few seconds!