Introduction
Welcome to teeter! We're glad to have you with us.
What is teeter?
Permissionless, leveraged, and tokenized yield tranche with the varied risk-return matrix. In teeter, you can get fixed income or leveraged return of any token. Actually teeter is a DeFi derivative protocol that uses a structured fund model to issue both USD-denominated bond token called bToken and leveraged token called xToken.
In the teeter protocol, users can purchase funds of the senior tranche to get a fixed return on investment or purchase funds of the subordinated tranche to get x times return. The senior tranche is an A-grade USD-denominated bond which essentially guarantees the principal along with interest in most cases. The subordinated tranche is equity which will get leveraged returns and take more risk.
In the teeter protocol, the senior tranche issues what we call bTOKENs, while the subordinated tranche issues xTOKENs. The exact name of the token varies based upon the underlying asset. Using ETH as the underlying asset, for example, gets a user bETH and / or xETH.
bToken: is an A-grade USD-denominated bond that essentially guarantees the principal along with interest in most cases. The return depends on the interest of the token pool. It is issued by senior tranche;
xToken: is equity that will get leveraged returns and take more risk. The return depends on the price of the spot(token/USDT). Users will get n times leveraged return of the price volatility. It is issued by subordinated tranche;
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