↔️ Bridge Assets To Harmony
Multi-Chain Farm Stats
🔥 Burn Vaults
Burn vaults are a special kind of vault. They are used to manage the burn rate of fees, and have their own distinct benefits.
Instead of immediately burning all fees, we opt for a slow burn, gradually growing over time.
Here's how it normally works:
Say we have
in fees to burn. Most other yield farms would just take a portion (
for example), to buy back their own token and send it to a burn address.
This ends up with
leftover in fees and a bump in the token price temporarily.
Eventually, there won't be any more fees to burn. The price of the token will gradually trickle down to zero, as there is now no price incentive to farm.
What do we do differently?
Instead of the above, our methodology is to take the burning fees and
stake them in a vault
, for example 1ETH-1UST. We then
burn the earnings from the vault
Going back to our
is staked in a vault, generating a humble but consistent
$30 per day.
The key here is consistency: it will continuously generate $30 per day.
As deposits increase and other vaults harvest rewards, the burn vault grows, generating more rewards to burn!
This avoids the price gradually reducing to nothing, making FarmersOnly farming sustainable for the long-haul!
DEFI - Previous
Next - DEFI