yTCY — Yield Bearing TCY
yTCY (Yield Bearing TCY) is an index asset within the THORChain ecosystem, created and maintained by NAMI.
What is yTCY?
yTCY (Yield Bearing TCY) is an index asset within the THORChain ecosystem, created and maintained by NAMI.
It is designed to give users liquid access to TCY, the token that directly captures 10% of Thorchain’s system income. Unlike holding raw TCY, yTCY automates compounding, rebalancing, and exposure management, making it a more efficient way to benefit from Thorchain’s unique yield dynamics.
For technical specifications, you can refer to the NAMI documentation.
How does yTCY work?
yTCY is structured as a self-rebalancing index of TCY and RUNE, optimized to maximize yield while managing volatility:
1. Thorchain System Yield
TCY receives 10% of Thorchain’s system income, making it the only token that naturally accrues network rewards.
yTCY compounds these rewards, ensuring that holders benefit without manual staking or claiming.
2. Exposure to RUNE
Since TCY liquidity is shallow, price fluctuations can be sharp.
By combining TCY with RUNE exposure, yTCY smooths out volatility while still capturing upside from both assets.
3. Rebalancing & Liquidity Safeguards
The index automatically rebalances toward the more attractive asset (RUNE or TCY), capturing volatility.
Safeguards are built in to minimize slippage and prevent harmful trades in thin markets.
Weights & Rebalancing
Initial weights: 80% TCY — 20% RUNE
Rebalancing frequency: continuous, with checks on every contract crank (at least once per minute)
Trigger: if the weight distribution moves more than 1% away from target, a rebalance is initiated
Fee Structure
Redemption Fee (1%) → Collected by NAMI as index creators, applied when withdrawing
AUM Fee (1% per year) → Collected by NAMI, calculated block-by-block and charged during contract interactions
Mint Fee:
None if your wallet holds less than 1,000 RUNE
1% affiliate fee if your wallet balance exceeds 1,000 RUNE → collected by RUNEBond
💡 The affiliate fee is a RUNEBond-specific policy: since yTCY (like yRUNE) does not contribute directly to THORChain’s node bonding, this mechanism ensures that large RUNE holders still support network decentralization and security by incentivizing them to bond capital into validator nodes.
Risks
As with any DeFi index product, yTCY comes with risks:
Asset risk → Exposure to the price of TCY and RUNE
Smart contract risk → The underlying NAMI contracts are audited, but never risk-free
Rebalancing risk → Automated trading is designed to capture volatility, but outcomes depend on liquidity and market conditions
Liquidity risk of TCY → Thin markets can cause sharp price moves and rebalance delays
Ecosystem dependency → Changes in Thorchain’s income model or protocol parameters could impact performance
Why choose yTCY?
Direct access to Thorchain system income via TCY
Automated compounding and rebalancing for maximum efficiency
Diversified exposure by combining TCY and RUNE
Fully supported on RUNEBond, making access straightforward and user-friendly
👉 Get yTCY directly through RUNEBond and explore other yield assets here:
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