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How Yield is Generated for haTOKENS

Harbor's high yields come from concentrating all the yield from the protocol's collateral into a smaller pool of active users, enhanced by Harbor's revenue-sharing tokenomics.

  • Yield Concentration: When you mint haTOKENS (pegged tokens) and hsTOKENS (leveraged tokens), your collateral is pooled. However, only haTOKENS deposited in the stability pool earn yield.

  • Example: Suppose there is $100 of collateral backing $50 of haUSD and $50 of hsETH.
    If only $30 of haUSD is deposited in the stability pool (and the rest is in wallets or liquidity pools), then that $30 is earning yield from the full $100 of collateral.
    This means the stability pool can earn 3x the base yield—so if the collateral earns 7% APR, the stability pool could see 20%+ APR.

  • Protocol Revenue Enhancement:

    • Harbor directs 75% of protocol revenue to stability pools (pre-$10M TVL)
    • This includes mint/redemption fees and collateral yield
    • After the $10M TVL milestone, revenue sharing continues with a declining treasury allocation

  • Result:

    • haTOKENS in the stability pool earn a much higher APR than the underlying collateral, plus protocol revenue sharing
    • hsTOKENS benefit from the protocol's rebalancing and risk management, but do not earn yield directly

  • Extra Boost: On top of this, $TIDE incentives through team-directed allocations can further increase the yield for active participants.

By concentrating all the yield from the protocol's collateral into the stability pool AND directing 75% of protocol revenue to these participants, Harbor delivers exceptional APRs to active users who secure the protocol.