FAQ - Yield Baker

Yield Baker is an Automated Liquidity Protocol with a rebalancer instrument for tokenized staked assets on Tezos (dXTZ, SLOT). It's a smart-contract driven protocol that allows users to deposit their staked XTZ (dXTZ) to earn a yield up to 25% APY by providing liquidity for SLOTs.

No this is not from staking rewards, dXTZ holders will earn their staking reward from Tezos baking process as normal in addition to Yield Bakers 25% APY. So in effect, every dXTZ holder who is providing liquidity to Yield Baker will earn up to 25% APY + Staking rewards ( both are denominated on XTZ)

dXTZ holders to provide liquidity to the SLOT token pool
dXTZ holders shall earn 0.21% per cycle (4096 blocks)
On avg 3 days per cycle (Remember block timing is not consistent it can go up down a little)
0.21 x 120 = 25.2%
(Yield Baker smart contract is limited to 25% APY with a 13 cycle rollover maturity)

Simply delegate your XTZ from your wallet to a DAO Baker participating baker and activate Yield Baker on www.swapmarket.xyz and you are ready to go!
Users need to delegate their XTZ for baking through a DAO Baker enabled validator. The same process you do now for baking XTZ where a user simply selects a baker who is participating with DAO Baker tokenized staking. By doing this users can receive dXTZ in return. The received dXTZ can now be locked with Yield Baker. We will provide this UX on the Swap Market web interface to do both processes directly from your wallet in a few clicks with no additional friction.

Yield Baker allows users to lend their dXTZ to a pool for SLOT trading and earn 0.21% per cycle (around 3 days). Read more here:

There is no counterparty risk associated with dXTZ when locking up with Yield Baker as the protocol is non-custodial and never interfaces with your token. Users can always withdraw their provided liquidity.