Yield Engine (CCYOE)
Cross-Collateral Yield Optimization Engine
Cambi's most innovative feature isn't just accessing high yields – it's intelligently distributing them across the protocol to create sustainable, market-beating returns for all users. Think of it as both an embedded protocol hedge, as well a constant pseudo-equalizer that allocates yields (instead of token inflation or “free money” for mercenary capital) as a form of incentive to build a powerful, Bitcoin-first treasury for the protocol.
The Problem with Isolated Yields
Traditional protocols treat each asset in isolation:
USDC earns T-bill yields (5%) - that Circle keeps entirely
BTC earns DeFi lending yields (3%) - really high risk for low returns
Local currencies earn local rates - which are usually locked up and heavily controlled
This creates inefficiencies and limits growth potential.
Cambi's Approach
We treat all protocol yields as a unified pool, dynamically optimizing distribution while maintaining risk isolation:
Base Layer: Each asset generates native yields
cmBRL: 14-25% from Brazilian markets
cmUSD: 12-18% from USD-denominated receivables
cmBTC: 3-8% from institutional lending
Optimization Layer: Excess yields flow into unified pool
If cmBRL yield exceeds targets, excess yield boosts cmUSD/cmBTC
And since we're competing against single-digit-yields from other yield-bearing stables
If cmUSD yield exceeds targets, excess yield boosts cmBTC
During high-demand periods, yields auto-balance
Protocol treasury captures value for security and growth
Simplified Distribution Logic:
Base Yield Distribution:
- cmBRL holders: Native yield (currently 14-25%)
- cmUSD holders: Native yield (currently 12-18%)
- cmBTC holders: Native yield (currently 3-8%)
Optimization Distribution:
- Calculate excess yields above target rates
- Redistribute based on:
- 40% to under-supplied assets
- 30% to strategic growth incentives
- 20% to all holders proportionally
- 10% to protocol treasuryDynamic Supply Caps
To maintain attractive yields, we also implement dynamic supply caps:
cmBRL: Unlimited (main yield generator for protocol)
cmUSD: $50M initial cap (expands by $25M when yield >14%)
cmBTC: $20M initial cap (expands by $10M when utilization >80%)
Real-World Example
Imagine the protocol state:
cmBRL: $80M TVL generating 25% = $20M annual yield
cmUSD: $40M TVL expecting 15% = $6M expected yield
cmBTC: $15M TVL expecting 5% = $750k expected yield
Total protocol yield: $20M Total expected distribution: $6.75M Excess yield: $13.25M
This excess is redistributed:
cmUSD boost: +3% (to 18%)
cmBTC boost: +2% (to 7%)
Strategic reserves: $2M
Future incentives: $3M
Benefits of Unification
Network Effects: Success in one asset benefits all users
Sustainable Yields: Excess Brazilian yields subsidize other assets
Strategic Flexibility: Adjust yields to drive growth where needed
Risk Mitigation: Diversified yield sources protect against single-asset issues
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