# Summary

## The Issue

Three critical issues plague existing fixed yield solutions in DeFi

1. “Fixed” yields fluctuate throughout a user’s position.
2. Entering and exiting positions using automated market makers (AMMs) results in material slippage and, thus, a lower yield than stated, even with deep liquidity. 
3. Complex protocols discourage users, who must carefully review documentation and develop meticulous strategies to avoid risking their time and funds.

## Our Solution

Lila Finance employs a double-sided vault strategy connecting fixed-rate and variable-rate users. Fixed-rate users receive a fixed yield on their collateral paid by variable-rate users. Variable-rate users receive the actual yield generated from the fixed-rate users’ collateral. All users receive a tradeable non-fungible token (NFT) representing their position.

1. Fixed yields are guaranteed—variable rate users pay that interest upfront. 
2. No slippage from entering/exiting positions—users receive NFTs instead of tokens and can trade positions using NFT markets. 
3. Protocol displays a simple dashboard with a deposit and claim rewards page. Protocol recognizes user’s NFTs allowing seamless trading of positions.