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 higher rewards in exchange for higher risk.

Step-by-Step Guide

1. Navigate to the Products Page: Go to the Products section of the app.

2. Choose Asset to Boost: Click the Boost button under your asset of choice.

3. Enter the Amount: Input the amount of the avAsset you want to boost. The app will show you an estimate of the avAssetX you will receive in return.

4. Approve and Stake: Just like minting, you may need to approve the protocol's access to your avAsset first. After approval, click Boost and confirm the transaction in your wallet.

Your boosted token balance (e.g., avUSDx) will now appear on your dashboard. The value of this avAssetX increases as the protocol distributes yield, 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 stake, 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) will grow in value over time as yield is earned by the protocol, eventually becoming worth more than your initial deposit.

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