How it works

This page walks the full lifecycle of capital through YLDX — from a deposit landing on-chain to yield being generated, risk being managed, and value flowing back to token holders.

The lifecycle in five steps

1. Deposit & screening

Capital arrives at an L1 Entry wallet. The platform detects the deposit, tags it to the right client/White-Label, and screens it (KYC/AML/source-of-funds). Spam transfers and address-poisoning are filtered out — only a real deposit counts as a client.

2. Allocation

The AI Operator points the deposit to its target index (Stable / Coin / DEX / RWA). It opens the Top-10 highest-yield pools for that index — drawn from a vetted set of ≥ 40 — and prepares the routing. Working capital is pre-positioned so there is no entry latency.

3. Deployment & custody

The operator mints LP tokens into the chosen pools and forwards them to the index's cold (multisig) wallet. A small slice (1–10%) is retained on a scoring wallet to measure live performance on a real position, not a simulation.

4. Continuous management

24/7 the AI Operator:

re-scores every pool (yield, momentum, IL, TVL, anomalies);
manages the 3-corridor liquidity bands on the RWA Index (widen / tighten / recenter by volatility);
watches the 2.5% concentration cap and flags rebalances;
monitors lending health factors, depeg risk, exploit signals and governance events.

The operator validates these flags and executes approved rebalances through the multisig.

5. Withdrawal & value return

On a withdrawal request, exits are taken from the lowest-scored positions first (preserving the high-yield index). LP tokens are pulled from the cold wallet, unwound to base assets, routed back through the CEX layer to the client's entry wallet, and paid out. Deposits flow L1→L4; withdrawals retrace the full path — no sideways movement.

Profit generates the 25% performance fee, which is routed 100% to YLDX holders.

The flow, visually

        DEPOSIT                                          WITHDRAWAL
          │                                                   ▲
          ▼                                                   │
   ┌─────────────┐    ┌──────────────┐    ┌─────────────┐    ┌──────────────┐
   │ L1  Entry   │ ─▶ │ L2 Bridge/CEX│ ─▶ │ L3 Strategy │ ─▶ │ L4  Cold     │
   │ wallet      │    │ (Moonrock)   │    │ pools/LP    │    │ multisig 4/6 │
   └─────────────┘    └──────────────┘    └─────────────┘    └──────────────┘
        client            Binance/Bybit       Uniswap/Aave/     5 sector
        on-ramp           routing             Morpho etc.       vaults · 24h lock

Who does what

Actor	Role
AI Operator (`yldx-operator`)	Thinks: scores pools, reads signals, computes risk, prepares routing/rebalances. Never holds keys.
Human operator	Hands: routes capital, mints LP, processes withdrawals, keeps the index current. Cannot move funds alone.
Multisig signers (6)	Authorize every cold-wallet movement, 4-of-6, behind a 24h time-lock.
DAO / holders	Govern the treasury, vote on proposals, receive revenue.

Why this is safe and honest

No single party — human or AI — can unilaterally move funds.
Every step is on-chain and reconstructable, so proof-of-funds is always verifiable.
Diversification (≥40 pools, ≤2.5% each) means no single pool failure is catastrophic.
Exits come from the weakest positions, protecting the index's earning power.

What is YLDX Key concepts