Proof of Yield

Proof of Yield (PoY) changes the relationship between depositors and yield generators. Instead of trusting managers to be solvent, PoY forces them to prove it—continuously, on-chain, with real capital at risk.

The mechanism mirrors Proof of Stake, where validators must post a stake that can be slashed if they misbehave. In Proof of Yield, managers must post bonds that can be liquidated if they become insolvent. This bond is the proof that the yield is real.

Every dollar of yield in a Flux vault traces to a specific source: interest paid by managers who posted collateral bonds. No magic. No off-chain strategies. Query any position, check any manager's health, verify any yield source.

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Further Reading

• Flux Vault

• Strategies

• Liquidation