🛡️Vaults
We offer one of Harmony's first auto-compounding Vaults!
We have modeled our vaults after Polycat. We currently have 1 Burn Vault that uses 100% of the rewards to buy+burn our native FOX token. Creating perpetual demand!
Vault Benefits
1. Simple vs Compound Interest
Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it. - Einstein
To really maximize your yield farms, you need to be compounding your rewards back into your investment. Below is a sample of what compounding will do for you over the course of 1 year.
APR = Simple Interest APY = Compound Interest
2. Our Vaults Auto-Compound
Our vaults auto-compound your tokens for you. And because the transaction costs are SO LOW on Harmony, we are able compound your rewards multiple times EVERY HOUR!
Normally you have to run through following transactions to compound your farm investment. I will use the 1ETH/1USDC farm on Sushiswap on Harmony
Harvest rewards, receiving SUSHI and WONE
Sell 1/2 SUSHI for 1ETH
Sell 1/2 SUSHI for 1USDC
Sell 1/2 WONE for 1ETH
Sell 1/2 WONE for 1USDC
Use the new 1ETH and 1USDC to create the 1ETH/1USDC LP Token
Deposit LP Token back into Farm
Handle the leftover dust from creating the LP token
Now to really take full advantage of compound interest, repeat this every 10 minutes...
Or just let the FarmersOnly vaults do this for you!
3. Taxes
In some countries, every single transaction is considered a taxable event. This is a nightmare for yield farmers, especially if you are compounding (see the steps to compound in the section above).
However, with vaults you only have to account for the deposit and withdraw transactions to and from the vault, and the vault does the rest in smart contracts. This massively simplifies tax accounting for DEFI.
Vault Fees
Deposit Fee - 0%
Withdrawal Fee - 0.2% to the treasury for development costs
*Reward Fees - 4%
Controller Fee: 0.4% to the deployer to pay for compounding gas fees
Treasury Fee: 0.6% to the treasury for development costs
Burn Vault: 3.0% to the Burn Vault 🔥 for auto-buybacks
*Reward fees are only applied on the farming rewards, not on your initial investment
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