Rules and FAQ for Latch’s APY Boost

To reward early users, Latch is offering APY boost at launch with detailed rules below. Deposit now at latch.io to earn a boosted APY of 40%+ on your latch balance!

APY Boost Rules

On top of the APY that users can earn from the underlying protocols (Ether.Fi, Ethena), Latch is offering an additional 20% APY. For example, if the underlying yield for Ethena vault is 30% APY, then the eligible Latch user can earn 50% APY (30% + 20%) post APY boost.

The APY boost is subject to the eligibility criteria below:

1. Users need to meet and maintain the minimal deposit balance for the respective vaults:

• Ether.Fi Vault: Deposit Balance ≥ 0.3 ETH

• Ethena Vault: Deposit Balance ≥ 1,000 USDe

• If a user fails to maintain the minimal balance requirement after spending or withdrawal, the 20% APY boost will stop

2. There is a per-address cap on the amount of Latch balance that can enjoy the 20% APY boost:

• Ether.Fi Vault: capped at 25 ETH balance per address

• Ethena Vault: capped at 100,000 USDe balance per address

The 20% APY boost is going be distributed in ETH (Ether.Fi Vault) and USDe (Ethena Vault) on a daily basis, starting at the T+2 day after making deposit, and automatically compounding. Funding for the APY boost comes from Latch and its launch partners, including Galxe.

TVL Cap Rules

An initial TVL cap is set for the 2 vaults:

• Ether.Fi Vault: 1,500 ETH in total

• Ethena Vault: $5MM USDe in total

After the TVL cap is hit, the deposit function will be paused temporarily, and to be re-opened after TVL cap adjustments.

FAQ

1. What’s the start and end time for this APY boost?

• The APY boost starts from May 30th. The end time is not set, and it will not end before the TVL cap is hit. We will make announcements for any potential change to the boost policy in the future

2. For APY from the underlying vault, how is that calculated?

• For the underlying APY of Ether.Fi and Ethena, we sourced 3rd party APY data from Pendle. which reflects the market trading prices of the implied yield from Ether.Fi (restaking) and Ethena (locking USDe to earn points), incorporating the value of their airdrop points

3. What if I deposited 200,000 USDe? How is the APY calculated?

• In this case, your first 100,000 USDe balance earns the underlying Ethena APY + 20% APY boost offered by Latch, and the rest 100,000 USDe balance earns the underlying yield only without boost

• Assuming the underlying Ethena APY is 30%, then the overall APY on your 200,000 USDe balance = (100,000*(20%+30%) + 100,000*30%) / 200,000 = 40%

4. Does withdrawal impact the APY boost?

• You are free to withdraw any amount at any time, but there is a 7-day waiting period. You can read more about this waiting time in our docs here. As long as you maintain the minimal required balance, the APY boost is not affected by withdrawal.