Boosting for avAssetX

Boosting is an advanced strategy for users who want to earn a higher yield on their avUSD holdings. It involves boosting your avAsset (e.g., avUSD) to receive avAssetX (e.g., avUSDx), a Junior Tranche token that offers a potentially higher yield in exchange for a higher-risk position.

Step-by-Step Guide

1. Open Portfolio or Products: Go to the Portfolio or Products section of the app.

2. Open Earn and Select Mode: Click Earn under your asset of choice, then select Boosted Yield.

3. Choose Amount and Destination Chain: Select the avAsset amount to boost and choose the destination chain for the avAssetX output token.

4. Review Output and Route: Check the expected avAssetX output and fees. Click route details to view included bridge/boost stages.

5. Approve and Confirm: Approve the selected avAsset amount, then confirm Boost.

Your boosted token balance (e.g., avUSDx) will now appear on your dashboard. The value of this avAssetX can increase over time through the protocol's weekly Junior Tranche distribution, meaning it can be redeemed for more of its underlying avAsset in the future.

To learn more about the different token types, visit the Core Tokens page.

Boosting avUSD

How Boosted Tokens' Value Grows

You might notice that when you boost, say, 1000 avUSD, you receive a slightly lower number of avUSDx tokens, for example, 900 avUSDx. Don't worry, the total value is exactly the same at that moment. The key is that your avUSDx tokens (i.e., 900 avUSDx) can increase in redemption value over time as the protocol applies the weekly Junior Tranche distribution.

A sample diagram to show how the boosted tokens' value grows