AUTO-COMPOUNDED INVESTMENT STRATEGIES

dexVAULTS empowers users by simplifying the advanced trading strategies employed by experienced investors. Deposit funds into a strategy, then allow DeFi’s most sophisticated yield aggregator handle auto-balancing and profit-taking for you!

Overview

Yield farming

Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users deposit crypto on a DeFi platform and earn cryptocurrency in return for their investments.

Yield farmers who want to increase their yield output can employ more complex tactics. For example, yield farmers can constantly shift their cryptos between multiple loan platforms to optimize their gains.

Quick facts:

  • Yield farming is the process of token holders maximizing rewards across various DeFi platforms.
  • Yield farmers provide liquidity to various token pairs and earn rewards in cryptocurrencies.

Vaults

There are many projects in the DeFi space that issue rewards to users for interacting with their platforms, one example being the “bid” of tokens to a platform, which in turn can increase the total blockchain value for that project. Typically, LP (Liquidity Pool) tokens are used for this purpose, as many projects issue rewards in exchange for users providing the liquidity needed to run the platform. This is commonly referred to as “yield farming”.

Income farming for someone with limited funds can be prohibitively expensive because of the high transaction costs of receiving rewards. To solve this problem, “yield aggregators” are sets of contracts that aggregate these delivered funds together and allow users to optimise their yield farming performance by allowing “vaults” to automatically collect performance rewards and reinvest them in pools of liquidity, resulting in compounded returns. These auto compounding vaults allow users to take advantage of yield farms by depositing funds into “vaults”, which is the term for auto compounding contracts. These vaults allow depositors to not have to worry about gas fees, which maximises the returns they can earn on different yield farms. Vaults can vary in complexity and risk. Some vaults may even use more complex strategies involving multiple protocols and transaction types.

The task of Dex Finance Vaults is to collect LP pairs of tokens on different Dexes, combine them into one smart contract (vault) and then negotiate them (profit collection and reinvestment). Once the vault with the specified LP pairs has been created and the user credits his funds to them, they are allocated according to the specified shares. Immediately after the investment, rewards are credited, which the user can automatically (if the Auto-harvest threshold is met) or manually collect, part of which is reinvested and part of which is credited as Profit to his account.

Each vault consists of 1 to 3 farms, which differ in both the level of risk and the percentage of rewards accrued. Using Dex Finance you can either invest in stableLP and earn rewards or combine different LPs to create a balanced level of risk and APY of your vaults.

Risk level indicator determines the stability of the price of your assets within the vault, but it is not the main indicator. The higher the percentage of USDEX, USDC stablecoins in the vaults, the lower its risk level. But such vaults have a lower APY. Your goal is to keep the balance of your vault at an optimal level for you.

Harvest

Rewards for your investment are paid as soon as you invest, but you should be careful not to pay fees higher than the amount of the rewards. We have a good solution for that. By going to the Profit section of each vaults you can see the information and the Auto-harvest selector.

This amount is calculated according to the blockchain fees and represents the minimum amount at which calling Auto-harvest will be profitable for you. Auto-harvest runs once every 24 hours.

Before rewards are credited to your account, funds are allocated according to the Take profit for that vault. The Profit portion is credited to your wallet and the remainder is reinvested in this vault. You can find more information about Profit and Reinvest in the following sections.

Reinvest

After each harvest, part of the funds are automatically reinvested in this vault. The amount of reinvestment depends on the % take profit set.

reinvest = harvest – profit

Reinvestments can only be credited to the current vault. In order to receive them, the user will have to withdraw part of the total investment in that vault. In order to see how much has been reinvested, the user must go to the Performance section of the vault and find the transaction corresponding to the required date on the chart.

APY vs APR

  • APR represents the annual rate charged for earning or borrowing money.
  • APY takes into account compounding, but APR does not.
  • The more frequently the interest compounds, the greater the difference between APR and APY.
  • Investment companies generally advertise the APY, while lenders tout APR.

Creating a vault

Select up to three farms to combine in your vault.

Use our advanced search filters to select the exact farms that you’d like to include in your vault.

Decide an allocation for each farm.

Select an ETF that you’d like to take profit in.

Select the allocation amount of profit that you’d like to take.

Publish a vault

By publishing your strategy you can allow other participants to join and share in the gas expense for compounding. Strategy owners will receive 1% of the total take profit on each harvest.

Simply give your vault strategy a name, publisher name and description and click “Publish Now”.

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Make sure you publish your vault prior to depositing funds. By publishing a vault you are renouncing the contract and will no longer be able to edit your strategy.

Edit a vault

Prior to publishing you can edit your vault at any time by clicking the “Edit” button.

Select if you’d like to edit the ETF take profit selection or vault configuration.

If you’d like to change the take profit token select from the drop down list of available options.

Or update any of the farms or allocations in your vault.

Entering a Vault

You may choose to join any of the community published vaults.

Simply select a currency and how much you’d like to invest. Then click “Deposit”.

If you’re already holding the assets within your vault you may use the “Multideposit” button to deposit all of the assets within a single transaction.

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You will need to approve all of the assets prior to depositing.

Performance Metrics

Use our advanced performance metrics to monitor your investments. Track your charted investment, see exactly what’s happening within your vault and review deposit and withdrawal history.

Switch between your personal investment and the overall investment in the vault strategy.

Taking Profit

After each Harvest, a portion of the profit is accrued to the user according to the specified shares. These funds will be credited to the user as soon as the transaction is processed on the blockchain network.

The amount of the reward corresponds to the profit share and can be between 5 and 30 percent. Ready-made vaults specify this information on the preview, but if the user creates his own vault he sets this percentage himself. In their vaults, the user can change this percentage independently at any time.

All rewards to the user are credited in dexETF tokens.

Fees

All fees can be clearly viewed in real time on deposit/withdrawal tooltips.

  • Deposit fee: 0%
  • Withdrawal Fee: 0%
  • Harvest fee (taken upon each compound): 5.5%
    • All strategies include a harvest fee which is intended to cover gas fees, provide revenue for the treasury, and fund development operations.