- Yield Sharing

A leveraged position on Stella Strategy consists of two parts: the supplied tokens and borrowed tokens. The yield sharing should apply to only the yield generated from the borrowed tokens, excluding initial capital supplied by the leveragoor.

And after determining the yield to be shared with lenders and leveragoor in USD value, Stella proceeds to calculate the token amounts for proportional distribution among the different portions of the borrowed assets.

The lenders will receive the yield in the form of in-kind tokens. To determine the distribution, Stella calculates the number of tokens that the leveragoor needs to allocate for each portion of the borrowed assets. In some cases, swapping may be necessary if the generated yield is insufficient in that particular asset.

Lastly, after repaying the debt and sharing the yield all the assets left in the position will be transferred to the leveragoor including the supply and yield.