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Bounty-driven, low fee, LP-Compounding Vaults
Our LP-compounding vaults currently support almost all projects* with liquidity on Velodrome.**
As of this writing, our vaults have the lowest fees (and thus highest APYs) on Optimism. There is no deposit or withdrawal fee. Vaults compound whenever a user deposits or claims a vault bounty.
93% of vault rewards are swapped to the underlying LP tokens, compounding the deposits. 6% of vault rewards are converted into OpenX-ETH LP (collected by the Open X Project). 1% of vault rewards are due to the user that claims a bounty to compound the vault's LPs.
To claim a bounty, simply click on "Bounty" for the vault(s) worth*** claiming (remember to account for gas fees). Claiming is permissionless, accessible, and an easy way to get involved.
To deposit or withdraw, click on a vault to prompt the deposit and withdrawal interface.
Selecting "Gauge" allows one to unstake LP currently deposited on Velodrome. Selecting "Vault" will allow deposits of unstaked Velodrome LPs into the vault.
The user needs unstaked Velodrome LP tokens to deposit into the vault *or* one of the tokens that constitute the liquidity pair to zap into the vault. If you already have Velodrome LP tokens, simply make your selection, chose the number of LP tokens you wish to deposit, approve spending of your LP tokens, and confirm the deposit transaction. Withdrawal follows the same process in reverse.
The Zap and Unzap (pictured) features perform multiple actions in the same transaction. They are used in conjunction with our vaults to quickly make and break LP tokens.
If you hold one of the tokens of your preferred pair but do not currently have LP tokens, you can utilize the zap function to skip the process of making LP tokens. Zapping (and sometimes unzapping) involves swapping tokens to create or break LPs. and is subject to slippage. Visit the swap page to create a mock transaction using our aggregator to gauge slippage if needed.
Unzapping allows you to remove and break the LP in one transaction. Select "both" to simply break the LP and return the tokens to your wallet. Select either of the tokens (in this example, OpenX or WETH) to break the LP and swap either of the tokens for the other in one transaction.
*Tokens with a tax on transfer are not currently supported. If your project would like a vault added for your token, please contact us on Discord. We reserve the right to refuse to list tokens deployed using proxy contracts. A vault listing is not an endorsement of the token(s) that constitute the LP. Users are encouraged to do their own research on each project before depositing into a vault.
**Vaults for other exchanges on Optimism are in development.
***Do your own evaluation, NFA, etc.