Strategy
Y2R's vault strategies are modular smart contracts that tell it what assets to farm, and where it should sell the farmed assets. Rewards are regularly harvested, swapped for the original vault asset, and deposited again for compound farming.
Each vault and strategy link is hardcoded, and the code has been built to be immutable, so once they are released, they become unstoppable. No one can modify the vaults and strategies.
To release a new strategy on any asset, a new vault and strategy smart contract must be built.
Y2R automates the whole compounding process, making it close to optimal as possible. The compounding frequency depends on different variables in the system, like TVL, APR and strategy fees. The strategy contract has an interface of function harvest that anyone can call to help the strategy to harvest. In return, the one who calls the harvest function will be rewarded to cover their cost of gas. Such interface will enable the strategy to harvest in a high frequency without being controlled by any one.
No, the effect of compounded interest is exponential, not linear.
The right way to calculate the daily compound interest should be
.
The strategy itsself will charge 5% of the profit at harvest to cover the gas fee of harvesting and rewarding developers. Of course, to make Y2R a free public infrastructure, these fees will be returned after users participate in governance. details can be seen in:Broken link
Last modified 5mo ago