Vault
Vaults are investment instruments that employ a specific set of strategies for yield farming. They make use of automation to continually invest and reinvest deposited funds, which help to achieve high levels of compound interest. By using a Y2R vault to compound your gains, you save thousands of transactions with their associated gas costs, and precious personal time. Instead of manually harvesting and selling rewards, buying more tokens, and reinvesting that continuously, a vault does all that automatically at a high frequency.
Despite the name 'Vault' suggests, user funds are never locked in any vault on Y2R. One could always withdraw from a vault at any moment in time. Y2R also does not own user funds staked in vaults. However, it is generally best to view vaults as investment tools to store funds for the medium to long term in order to have the effects of compounding really kick in.
Users can sit back and relax, and watch their investment grow exponentially with APR!
A Y2RToken is an interest-bearing, tokenized proof of deposit that you will receive at the moment you deposit in a Y2R vault. A Y2RToken is unique per vault, e.g. you get Y2RCantoNoteLP tokens when depositing CantoNoteLP into the CantoNoteLP vault. One can view Y2RToken as the receipt of your vault deposit. The amount of Y2Rtoken does not equal to the amount of LP you deposit, but it does represent your proportional share in the vault. When profit is gained, the amount of Y2Rtoken in your wallet does not change while the amount of LP in the vault increases.
Y2Rtoken allows any users to withdraw their fair share of deposited funds. Moreover, as users are anonymous to Y2R Finance, privacy will be guaranteed. Funds deposited in the vault are independent of the wallet address where the deposit was made, as Y2Rtoken is the only proof of your share in the vault. Therefore, if you transfer Y2RTokens to another address, you can withdraw your share of funds from that address as normal.
Whenever you want to withdraw the token deposited in the vault, you need the Y2Rtoken to proof the amount you deposited and also your additional vault profit. Users are supposed to hold Y2Rtokens without transfering them to strangers. Because if you do so, you will lose ownership of the deposited assets in the vault!
Y2R vault can help you save your precious personal time and teransaction fee, harvesting automatically to gain the best profit.
if you harvest manually, you need to:
- Claim reward tokens.
- Swap the reward tokens to the two tokens needed by the LP in the right ratio.
- Deposit both tokens to get LP.
- Deposit LPs into the staking protocol to continue earning reward tokens.
Trying to perform such operations manually frequently is inefficient, and causes high gas fee. In Y2R, the vault will help you do all the works.
Y2R vaults are lossless, but this does not mean that a vault is entirely risk free. Below are some of the general vault risks:
- Assets deposited into the vault have no risk of decreasing in quantity but can decrease in monetary value.
- As with any smart contract, the ultimate risk is that an investor's funds can end up stolen or unable to be withdrawn. The team does take steps to quantify the security risks of smart contracts and will only interact with ones that meet a specific set of requirements after excessive testing to make sure the underlying platform does not contain so called 'rug-pull' functions.
- Y2RTokens represents the treasury share held by the users. As the vault gains profits, the amount of Y2RToken remains the same, while the amount of tokens deposited increases.
- Generally, there are no fees when depositing funds, so the amount of tokens you deposit will remain the same. The amount of tokens deposited will increase over time as the strategies employed by the vault generate profits.
Last modified 5mo ago