Yield Protocol · interactive mechanism simulation

Borrowers lock collateral in the Cauldron, mint fyDai, and sell it into the YieldSpace AMM to borrow at a fixed rate. Lenders buy that fyDai with Dai to lend at a fixed rate. As each quarterly series approaches maturity the fyDai price converges to 1.0000 Dai; at maturity it redeems 1:1 and vaults close. Edit the parameters or trigger the 2023 wind-down.
Borrowers mint & sell fyDai Cauldron min collateral 150% Witch seizes vaults below ratio YieldSpace AMM fyDai / Dai pool quoting 5.0% fixed Lenders buy fyDai, hold to term Maturity settlement 90-day series #1
Vaults open
0
Debt outstanding
0 Dai
Collateral locked
0.00 ETH
fyDai price 90d left
0.9878 → 1.0000 at maturity
Vaults liquidated
0
Parameters — edit me
150%
90d
5.0%
1.2/s
$2000
Controls

Illustrative simulation. Defaults mirror the researched Yield Protocol mechanism (fyToken zero-coupon bonds, a YieldSpace AMM quoting a fixed rate, Cauldron/Ladle vault accounting, Witch liquidations, ~150% ETH collateralization). Trade sizes and timing are randomized for visualization — not live onchain data. The "wind-down" button reflects what actually ended the protocol in October–December 2023: insufficient sustainable borrowing demand, not a hack or mechanism failure. Part of The Onchain Experiment Atlas.