Yield Vault User Benefits on Prime
The value prop for users of yield vaults is quite simple - higher yield strategies and leverage.
Higher Yield / Lower Risk Strategies in More Asset Denominations
Users benefit from higher yield strategies that run a significantly lower risk of liquidation in Prime's cross-margined ecosystem vs the fragmented nature of other chains.
This also makes it easy to run strategies denominated in any asset using leverage. For example, BTC (or any token denominated) vaults can benefit from basis trade yield by borrowing stables against BTC - without worrying about the risk of liquidation.
More Leverage For Vaults:
On the other side - your vault strategies on other chains can be tokenized and brought onto Prime to be used as collateral. Prime’s cross-margining valuation logic allows vaults to be seamlessly used as collateral for looping strategies - so users can loop vault yields to maximize their returns.
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