FAQ

Where does the yield come from?

The yield comes from the underlying platforms that distribute tokens and generate fees. We do not "create" the yield, we maximize it. This means that we create strategies wherever a yield is generated somewhere on MultiversX and we can maximize it. There is one only instance where we "create" the yield: when we distribute ATS in addition to the actual yield, it is only for the boosted vault.

What is an LP Token?

An LP Token (Liquidity Pool Token) is a token created by decentralized exchanges when someone adds liquidity to one of their pools. Liquidity providers deposit different assets into a pool and receive LP Tokens in exchange. LP Tokens represent a share of ownership in the pool and allow liquidity providers to earn fees for every trade made on the pool.

Do I have to call the reinvest function to earn money?

The reinvest function reinvests rewards for the entire pool and not just for your position. However, calling the reinvest function allows you to get some extra rewards from the amount that is reinvested. Typically, this function is called by automated programs rather than manually by humans.

What is the difference between APR and APY?

APR (Annual Percentage Rate) is the interest rate earned on an investment over one year without compounding. It is a simple interest rate.

APY (Annual Percentage Yield), on the other hand, takes into account the effect of compounding interest. It is the rate at which an investment will grow after factoring in the effect of compounding interest over a year.

In short, APR does not consider compounding, while APY does.