Vaults

What is a Vault?

Vaults are investment instruments that employ a specific set of strategies for yield farming. They make use of automation to continually invest and reinvest deposited funds, which help to achieve high levels of compounded interest. They are the core of the Beefy.Finance ecosystem.

When browsing the vaults on the platform, you will see the annual percentage yield (APY) which takes into consideration all compounding. You will also see the daily interest and amount invested in the vault by all users.

Each vault can either refer to a pair of tokens invested in liquidity pools within the Binance Smart Chain ecosystem or a single token invested in lending platforms. After investing their tokens, the user is supplied with mooTokens which represent their stake.

Anyone in the Cowmunity can work together to build new strategies and submit them to governance for voting.

Simply put, vaults can:

  • Use any asset as liquidity.

  • Provide one asset as collateral for another.

  • Manage collateral at a safe level to mitigate default.

  • Put any asset to work generating a yield.

  • Reinvest earned profits.

What is the fee structure for your vaults?

Most vaults has a performance fee structure of 4.0% to $BIFI holders who have staked in the governance RewardPool or BIFI Maxi vault and 1.5% to the Treasury. This fee is already built into the APY of each vault and daily rate. You do not need to calculate these yourself.

What is the relationship between the amount of mooTokens I have compared to my deposited tokens?

Your mooTokens only represent the share of the Vault that an investor has. As a vault generates profit, the amount of mooTokens in your wallet remains constant. The underlying invested token amount does however increase.

How often do the vaults harvest their profits and reinvest?

Vaults are normally harvested once every four hours and profits are reinvested. Larger vaults, such as our Cake vault, are harvested more frequently.

Why can't someone just do this themselves?

They could, but vaults help you save on gas, maintain healthy collateral to debt ratios, self-optimize for the best possible yields, and automatically reinvest earnings. Attempting to do this manually would result in large inefficiencies.

Does the vault page show the APY?

Yes. Our displayed APY values reflect the predicted rate earned on a vault in a year. This rate is determined by the platform, the strategy it's interacting with at the time, and also takes into account the effect of compounding. As a unique feature, we have also included all vault fees in the APY calculation. What you see is what you get, according to the calculations on the day.

What risks do the vaults have?

  • The team does take steps to quantify the security risks of smart contracts and only will interact with ones that meet a specific set of requirements.

  • As with any smart contract, an investor’s funds can end up stolen or unable to be withdrawn.

  • Assets deposited into the vault have no risk of decreasing in quantity but can decrease in monetary value. For example, when depositing 10 BNB, you will always be able to withdraw 10 BNB, but BNB may decrease in monetary value during that period.

What are the different vaults?

  • Money Market : Utilizes stable lending platforms, such as Fortube, to generate the highest possible yield for these coins (BUSD, LINK, DOT, DAI, USDT, ETH, or BTCB).

  • Native Token Farming : Takes advantage of the high yield on popular farms by depositing another asset to earn, sell and compound profits of the native reward token.

What will I get out when I make a vault withdrawal?

  • You will always withdrawal only the token type that you deposited.

  • You will get the amount you put in, plus the yield generated, minus the fees.

How do LP vaults work?

Liquidity pool (LP) vaults work by reinvesting the fees awarded to LP participants. In return for providing liquidity to the pool, many platforms reward investors with tokens. Our vaults regularly take the reward, buy more of the LP’s underlying assets, and then reinvest.

This compounds the rewards gained from the pool. Beefy.Finance creates strategies that automate this process, saving you time and gas fees in comparison to farming manually. This is all done for a small fee that is distributed to those staked in Beefy’s governance RewardPool or BIFI Max vault. A small percentage also goes to the Beefy Finance treasury

What are the fees?

  • Vaults have a 0.1% withdrawal fee.

    • The main purpose of this fee is to prevent possible exploits from bad-faith actors. Without the fee, somebody could deposit just before the harvest() function execution and withdraw straight after that event, taking a % of the gains generated by legitimate stakers.

  • Performance fee on additional yield.

    • This performance fee was implemented to promote community engagement and governance participation. A successful and engaged community is critical for our further growth, which in-turn rewards platform users.

    • A small portion of the performance fee is also routed to a treasury which will be used to fund further platform security and product initiatives.

    • Currently, the performance fee varies, depending on the vault being used, and is detailed in each vault section.

  • Call fee of 0.5% during each harvest()

    • This fee is used to cover the cost of each harvest() call.

    • It is a shared cost across all vault users and significantly cheaper than performing transactions individually.

Does the performance fee get taken out when I withdraw my funds?

  • No, the fees are taken every time someone calls the harvest() function.

How often are balances updated in the vaults?

  • Pending rewards are not reflected in the balance until they are swapped for the initial deposited token. This can vary depending on the strategy running.

Why do I have less mooToken than the amount of tokens I deposited?

  • The mooTokens represent the share of the Vault the user has. As the vaults generate profit, the amount of shares (mooToken) remain constant, and the underlying token amount increases.

  • There is no deposit fee, so the amount of tokens you deposit is maintained the second after you deposited. That amount should increase over time as the strategy generates profit.

How do vaults get added to Beefy.Finance?

New vaults can be requested in our Discord in the #whiteboard channel. Our strategists then add the potential investment strategy to our strategy list. A priority is assigned to each new, potential strategy based on its APY, TVL and sustainability. Our developers/strategists then attack the list from top priority to bottom.

What’s your vault naming process?

Each vault on the platform is named after the token that users can deposit in it. For example, the NYA-CAKE LP vault uses NYA-CAKE LP tokens for its investment strategy. The Kebab vault uses the Kebab token, etc. Underneath the vault name, you can find the platform used for investing the token and farming its yields. For example, Uses: Venus means that that particular vault invests the token in Venus, a DeFi algorithmic money market and synthetic stablecoin protocol.

How do Venus vaults work?

Venus is a decentralized marketplace for lenders and borrowers. By depositing your initial asset in the vault, Beefy deposits it into Venus and borrows against your token. This is done at a safe level of collateral.

The borrowed tokens are then redeposited into the platform, and once again used as collateral to borrow more tokens. This cycle is repeated 4 times. XVS (Venus token) is also farmed and sold to purchase more of your originally deposited assets.

This process is fully automated and incurs a small fee distributed to those staked in Beefy’s governance RewardPool or BIFI Max vault. A small percentage also goes to the Beefy Finance treasury.