🐂Vaults Strategy

What's BlueBit Vault V1

BlueBit Vaults V1 is our first-generation yield optimizer focused on providing LP token holders with auto-compounded yields at empirical optimal intervals

BlueBit Vault V1 Strategy

Currently, BlueBit Vaults V1 are applying the following auto-compounding strategy: The user deposits their AMM LP tokens into the vault. Our protocol contract allows automatically selling your DEX rewards ($TRI, etc.) approximately every 4 hours and then converts the rewards into the LP token constituents for the same pool you are farming and compounds them onto your farming principal.

To avoid users gaming compounding rewards, BlueBit will charge an early withdrawal fee. Please note that withdrawing within 12 hours of the last deposit will result in a 0.5% withdrawal fee. The timer resets every time you deposit a new LP in the pool.

What is APR vs APY?

APR refers to the simple interest accrued from a particular investment over a 1 year period. APY refers to the compounded interest accrued from a particular investment over a 1 year period. To understand the magic of compounding, check below:

It is also important to notice this displayed APY is dynamic and can change (increase and decrease) through time mainly by two factors:

1. Price of the reward token farmed and compounded into the principal

2. Amount of people or value locked inside the pool (usually rewards are fix so more people or TVL implies that this reward is diluted)

Future Strategies

Our team is constantly monitoring the DeFi space on Aurora and will be looking to implement new yield strategies as more pieces emerge.