Dex Finance enables users to stake their tokens within a multi-step strategy rather than manually having to adjust for emission rates and market fluctuations within the Money Market ecosystem. dexVAULTS+ Strategies empower users by simplifying the advanced trading techniques employed by experienced investors while saving time and gas fees.
Strategies enable users to utilize the power of compounding earning to exponentially grow their investments.
What makes dexVAULTS+ Strategies Unique?
dexVAULTS+ are an innovative yield optimizer product that enable users to diversify at predefined investment ratios within the Money Market ecosystem based on their risk tolerance and investment goals.
Unlike most yield optimizers, dexVAULTS+ allows the user to manage a multi-layered investment portfolio through a single smart contract interaction. This increases the efficiency with which an investor can grow their position, and reduces the burden of being attentive to multiple strategies.
Benefits of Strategies
- Simplify investment into Dex Finance – Set it and forget it!
- Automated diversification – Minimize volatility through diversification!
- Automatic compounding – Turn APR into APY with compounding!
- Set profit taking levels – Keep yourself honest, and actually take profits!
- Minimizes transactions – Simplify your tax prep at the end of the year!
dexVAULTS+ offers multiple auto-compounding strategies which are designed to allow investors to choose a strategy based on their risk tolerance and investment goals.
Which strategy do I pick?
One of the most frequently asked questions our moderators receive is how to initially invest in the Dex Finance Money Market.
dexVAULTS+ Strategies automatically follow a predefined investment flow within the Money Market.
Strategies manage the funds among two farms and the dexSHARE regulation pool, each with different risk/reward profiles.
Our unique method of peg regulation is designed to maintain the price of USDEX within relative proximity to the price of USDC thereby drastically reducing the risk of loss due to price action.
Since the price of USDEX is pegged to USDC (a collateral backed stable coin with a value of $1) the risk of impermanent loss is nearly eliminated.
Given these two factors, one can enter into the USDEX/USDC farm at any time with limited risk.
Unlike the USDEX/USDC liquidity pool (LP), the dexSHARE/BNB LP includes two non-stable tokens which fluctuate in price and thereby carry more inherent risk with greater upside potential. dexSHARE is paired with the blue-chip BNB token, currently sitting in a top 5 position for total market cap. The huge liquidity of BNB provides diversification which minimizes the impact of dexSHARE price volatility on the LP value.
The price of dexSHARE is meant to fluctuate in price and thereby carries more of an inherent risk with greater upside potential. Regulation is a single-token staking pool, which means that 100% of the price fluctuation is based upon the dexSHARE token price.
The three fixed strategies provide pre-defined portfolio ratios to offer different risk tolerance investment options:
All fixed strategies are compounded daily by the protocol and upon each deposit and withdrawal transaction.
All investments into each fixed strategy are pooled together. This benefits investors by saving on gas and zap fees.
Flex Strategies offer advanced investors a semi-customizable strategy where each user can allocate custom ratios among the different Money Market investment options.
In addition, flex strategies offer the ability to allocate ETF rewards to be claimed directly into your wallet as a take-profit option. The remaining ETF rewards will be compounded directly into the Money Market investment options according to the ratio selected upon creating the Flex Strategy.
The flexible strategies allow for auto profit taking but gas fees are higher so there will be a suggested minimum deposit for using them. Profits are taken exclusively in the form of the ETF token. Users may claim the ETF profits similar to the Regulation pool.
Flexible strategies utilize logic to compound when a gas threshold is met.
Every Flex Strategy that’s created is its own unique contract. Our strategy factory contract automatically deploys a strategy smart contract based upon the specific parameters selected by the investor.
When entering a strategy, investors receive a single receipt token which carries the same value as if they were navigating in and out of multiple farm pools. As rewards are earned, they are wrapped within the receipt token. This means that the balance receipt token will not increase, but the receipt token value will change to reflect the value of the underlying assets and rewards.
How to Use dexVAULTS+ Strategies
Watch this how to guide:
Fees vary depending on the strategy, but have been set to be below the market rate for fees charged by other yield optimizer projects.
Deposit fee: 0.3% (paid in USDEX)
Harvest fee (taken upon each compound):
Fixed Strategies: 3%
Custom Strategies: 3%
All strategies include a harvest fee which is intended to cover gas fees, provide revenue for the treasury, and fund development operations.
Withdrawal Fee: 3% reducing linearly to 0.5% over 30 days
Withdrawal fees are not intended to be a source of revenue for the project. The main goal of withdrawal fees is to prevent front running attacks and minimize mercenary farmers that are typical in DeFi projects.