🔁MicroVaults
What is a Vault?
A vault is an automated investment tool that employs strategic yield farming techniques. It simplifies the process by automatically managing your funds and maximizing compounding interest. This eliminates the need for manual transactions and associated gas fees, saving you time and money.
MicroVaults are the exclusive feature of the MicroSwap ecosystem. When you stake assets in a vault, they automatically grow over time. This applies to both liquidity pool tokens and single assets. For instance, staking CRO-zkCRO LP in a vault will yield more CRO-zkCRO LP, increasing your share in the liquidity pool and generating higher fees and rewards.
Although the name "vault" might imply otherwise, user funds are not locked on MicroVaults. You can withdraw your funds from a vault at any time. MicroVaults doesn't own the assets you stake. However, it's generally best to consider vaults as long-term investment tools to fully benefit from compounding interest.
When exploring vaults on our platform, you'll see the annual percentage yield (APY), which accounts for frequent compounding. This differs from the annual percentage rate (APR), which doesn't. You'll also find daily interest rates and the total value locked (TVL) in each vault. Additionally, you can see the underlying platform that generates the vault's income.
Summarizing, vaults can:
Efficiently execute yield farming strategies.
Compound rewards into the initially deposited token amount.
Use any asset as liquidity.
Provide one asset as collateral for another.
Manage collateral at a safe level to mitigate liquidation.
Put any asset to work to generate a yield.
Reinvest earned profits.
Users can sit back and relax, and watch their investment grow!
Example Strategies
Fees Structure
MicroVaults charges a 5% fee on each autocompound:
4% performance fee
1% gas fee (compound every 30 minutes)
No deposit and withdrawal fee
How often do the vaults harvest their profits and reinvest?
MicroVaults automatically compounds rewards every 30 minutes if they reach $100 or more.
Smaller rewards accumulate for up to 4 hours before being compounded.
You can also manually compound rewards at any time by clicking "Compound" on the vault interface.
Last updated
