Silent Yield Farm

The Infrastructure Layer: Yield Generation

The Ghost Layer integrates a module called the Silent Yield Farm (SYF), designed to generate yield in a positive-sum manner for users through the productive use of deposited assets. When users deposit assets into the Ghost Layer, the system mints a cryptographic synthetic representation of the underlying asset—denoted as ciphertexts—which are cryptographically bound to the asset owners. The Ghost Layer enables these underlying assets to be rehypothecated across various protocol-adopted strategies to produce yield for users, while still allowing owners to freely move their assets within the ecosystem. Each SYF-marked asset may be utilized in one or multiple strategies. The DAO governs these strategies, with the ability to add, extend, or modify them based on market conditions. The protocol adheres to strict guidelines and policies, initially defined at inception and later adjustable by the DAO.

Key Terminologies

• Idle Balance: The balance of a specific asset within the Ghost Layer must always be greater than or equal to the idle balance remaining in the system.

• Invested Balance: This represents the portion of the asset balance actively invested or utilized to generate yield within the protocol.

• Withdrawal Rules: Users can withdraw assets up to the maximum of the idle balance at any given time. Any withdrawal request exceeding this limit is placed into a queue for processing.