Yield Optimizer
Deposit your assets and grow your crypto holdings passively with our strategies, secured by smart contracts.
Autoscale Vaults (aVaults)
A vault is where you deposit your assets, here are some of the characteristics of an Autoscale Vault:
The token you deposit in an aVault is the token you’ll receive yield, the underlying rewards will be automatically compounded into the token in the vault (e.g. you deposit 10 EGLD into the aVault EGLD, you decide to withdraw 100% of your funds after 1 week, you will withdraw more EGLD than you deposited, assuming there was 0% deposit fee)
A aVault is always linked to one strategy
When you make a deposit to a vault, the vault sends you a deposit receipt called avToken
The vaults are the intermediary between you and the strategies, you will go through them every time to deposit or withdraw your funds. When you deposit into the vault, it will deposit into the underlying strategy and send you your deposit receipt (avToken) and when you withdraw your funds, you will send your deposit receipt (avToken) to the vault and it will retrieve your funds (based on your share in the vault) from the strategy and send them to you.
Let's take an example so you can see how it works and how you actually make money:
Bob deposited 3 EGLD and Alice deposited 1 EGLD in the EGLD vault. In exchange, they received 3 avEGLD and 1 avEGLD, respectively (we assume that currently, the ratio of EGLD to avEGLD is 1:1), which represents their ownership in the vault. Bob's ownership in the vault is 75% and Alice's is 25%.
The EGLDs were deposited into the strategy and then into a farm, say on Ashswap, which distributes the rewards in ASH.
As time passes, the strategy accumulates rewards in ASH. When someone triggers the reinvest function, the rewards are swapped for the base token (EGLD). The strategy then converts all of the ASH to EGLD and deposits it back into the farm. Let's say that it swapped X ASH to get 1 EGLD.
The result
The strategy now holds 5 EGLD, while Bob and Alice still own 75% and 25% of the vault, respectively. As the underlying assets have increased from 4 EGLD to 5 EGLD, the value of their shares has also increased. Specifically, 1 avEGLD is now equal to 1.25 EGLD.
If Bob were to withdraw his shares at this point, he would receive 3.75 EGLD and make a profit of 0.75 EGLD
What are strategies?
A strategy is a smart contract that manages everything, it deposits tokens in the target farm, claims rewards incentives, reinvests the rewards in the desired token, etc.
Let's take an example of a simple strategy, for this example, we'll take an LP Strategy, let's create the context. There is an USDC-USDT farm on Ashswap that rewards in ASH, we decide to maximize the yield and so we will compound the ASH into the USDT-USDT farm So we create a strategy that will deposit the funds (USDT-USDT LP Tokens) into the SC of the USDC-USDT farm, and reinvest the ASH rewards into the farm (this strategy will be linked to a USDC-USDT vault). Someone will trigger the reinvest function when they think it's the right time to do so and the strategy will do the rest: 1. Claim the ASH rewards 2. Swap all the ASH to USDC 3. Swap 50% of the USDC for USDT 4. Add Liquidity to the USDC-USDT pool 5. Deposit the USDT-USDT LP tokens in the farm
That's it, now we can put our legs up on the desk and let the power of compound interest do the work.
Boosted Vaults
Boosted vaults are aVaults, but with an added bonus reward. When you deposit funds into a boosted vault, you not only earn the regular returns from the strategy but also receive extra tokens as a reward. However, these rewards need to be manually claimed.
Boosted vaults are available for all vaults and as said offer a way to earn additional rewards for depositing funds. They serve as an incentive to attract more liquidity to certain vaults and as a way to distribute our token in an interesting manner.
The rewards distributed through boosted vaults can be any fungible token, although they are most commonly distributed in ATS.
What is an avToken?
The avToken (Autoscale Vault Token) is like your deposit receipt, it is your share in the vault. When you deposit a token into a vault, you automatically receive an avToken in exchange, which you need to get your share back.
If the vault is generating profits, the value of your avToken share will increase over time. This happens because there are more underlying tokens in the vault to redeem upon withdrawal.
For example, if you deposit EGLD in the EGLD vault, you will receive avEGLD tokens in exchange (the smart contract will mint avEGLD tokens and send them to you), when you decide to withdraw, you will have to send the avEGLD tokens (the SC will burn your avEGLDs) and give you back the EGLDs you deposited and the extra EGLDs you earned from the strategy (and you will even receive extra ATSs if it was a boosted vault).
You will only receive more assets than you deposited if a reinvest took place after your deposit. When a reinvest occurs, the number of underlying tokens in the vault increases and so does the price of your shares.
You must own your avTokens in order to withdraw your funds. If you sell or trade them to another person, you will lose ownership of your deposited assets.
Fee structure
We help you make more money passively, save time, and more, but then on our side, how do we make money? We make money through fees for using our products. There are several types of fees for our Yield Optimizer:
All APYs displayed on our site are net of fees (the fees have already been deducted), the APY displayed is the one you really earn
Performance fees are taken on earnings, for example, if the strategy claims 1,000 ASH, it will keep 100 ASH as performance fees. Reinvest fees are also only on earnings, whoever triggers the reinvest function takes 1% of the reward claimed.
The reinvest thing
For each strategy, we have a reinvest function that can be called by anyone. The "reinvest" function, as the name suggests, reinvests the reward into the base token.
If you call the endpoint, you will get a reward: a percentage of the rewards waiting to be reinvested.
Call the reinvest function once the reinvest rewards are greater than the gas fees you will pay for the transaction
Let's take a simple example:
We have a strategy for EGLD-BUSD that generates rewards in MEX, there are 100,000,000 MEX rewards waiting to be reinvested, so you decide to go ahead and call the reinvest function! The function will swap almost all MEX into EGLD (it will keep a percentage as a reward for you and for us), then swap 50% into BUSD, add liquidity into the EGLD-BUSD pool, and deposit the LP Tokens into the strategy! And of course, it will send your reward in MEX (in MEX because the reward was in MEX, if the reward was in ASH you would have received ASH).
If there were 10,000 EGLD-BUSD LP Tokens in the strategy before the reinvestment, we now have 10,500 LP Tokens! (if we assume that we have reinvested for 500 EGLD-BUSD LP Tokens)
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