> For the complete documentation index, see [llms.txt](https://leticiafi.gitbook.io/leticia-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://leticiafi.gitbook.io/leticia-docs/protocol-mechanics/yield-sources.md).

# Yield Sources

#### Overview

Every fixed rate in Leticia is backed by a real yield source from the Initia ecosystem. No synthetic rewards — only native, real yield generated today.

***

#### INIT → Enshrined Liquidity

| Parameter                 | Value              |
| ------------------------- | ------------------ |
| Fixed APR offered         | 10%                |
| Duration                  | 90 days            |
| Underlying variable yield | \~8–15% APR        |
| Source mechanism          | LP staking rewards |

**How it works:** INIT deposits are staked into Initia's Enshrined Liquidity pools — the native liquidity layer built directly into Initia's core protocol. These pools generate LP trading fees and staking rewards. The variable reward rate fluctuates with trading volume and liquidity demand. Leticia locks in 10% for depositors and absorbs the spread.

```
User deposits INIT
├── Vault locks 10% fixed APR for 90 days
├── Protocol stakes INIT into Enshrined Liquidity pools
├── Variable LP rewards generated (~8–15% APR)
└── Spread (variable − fixed) = protocol margin
```

***

#### sINIT → Inertia Liquid Staking

| Parameter                 | Value                     |
| ------------------------- | ------------------------- |
| Fixed APR offered         | 15%                       |
| Duration                  | 90 days                   |
| Underlying variable yield | \~10–18% APR              |
| Source mechanism          | Validator staking rewards |

**How it works:** sINIT is Inertia's liquid staking token — it represents staked INIT and accrues validator rewards over time. When you deposit sINIT into Leticia, the vault holds it and lets Inertia's native staking yield accrue automatically. Leticia locks in 15% for depositors and absorbs the spread.

```
User deposits sINIT
├── Vault locks 15% fixed APR for 90 days
├── Protocol holds sINIT — Inertia staking rewards accrue natively
├── Variable staking rewards generated (~10–18% APR)
└── Spread (variable − fixed) = protocol margin
```

***

#### USDe → Ethena Delta-Neutral Strategy

| Parameter                 | Value                      |
| ------------------------- | -------------------------- |
| Fixed APR offered         | 7%                         |
| Duration                  | 180 days                   |
| Underlying variable yield | \~5–12% APR                |
| Source mechanism          | Funding rate basis trading |

**How it works:** USDe is Ethena's delta-neutral stablecoin backed by spot crypto positions offset by perpetual short positions. Holding USDe in Ethena's sUSDe vaults earns the funding rate from this basis trade. Leticia deposits USDe into Ethena sUSDe vaults and locks in 7% APR for depositors.

```
User deposits USDe
├── Vault locks 7% fixed APR for 180 days
├── Protocol deposits USDe into Ethena sUSDe vaults
├── Delta-neutral funding rate yield generated (~5–12% APR)
└── Spread (variable − fixed) = protocol margin
```

***

#### Vault Configuration Summary

| Asset | Fixed APR | Duration | Yield Source        | Variable Range |
| ----- | --------- | -------- | ------------------- | -------------- |
| INIT  | 10%       | 90 days  | Enshrined Liquidity | \~8–15% APR    |
| sINIT | 15%       | 90 days  | Inertia Staking     | \~10–18% APR   |
| USDe  | 7%        | 180 days | Ethena sUSDe        | \~5–12% APR    |


---

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