Vaults

BCharity Vaults automatically compound farms for you. That means there’s less work for you.

Think of vaults as smart farms, where you don’t need to go through the hassle of harvesting rewards, selling half, adding liquidity, and re-staking those LP tokens.

Whether for pools or single token vaults, you don’t have to manually harvest and compound your rewards anymore.

Vault Fees

• 2.5% of the earnings from standard vaults are used to burn $GIVE.

• 0.5% of the earnings from standard vaults are used to cover the auto-compounding, swapping, burning & gas fees.

• 100% of the earnings from burning vaults are used to burn $GIVE.

The APY for vaults includes liquidity provider fees for LPs. See Vault APYs for full details of how APYs are calculated.

Vault APYs

Normally, the yield rate is reflected as Annual Percentage Rate (APR), as the native token reward does not auto-compound. With an auto-compounder, the return in a year can be significantly higher and we refer to Annual Percentage Yield (APY) instead of APR, to reflect the compounding nature of the investment.

The APY displayed is a combination of:

• Trading fees, and

• Pool rewards.

Trading fees are given to liquidity providers in proportion to their percentage stake in the LP. Trading fee rates vary, but are generally a percentage of all trades on the pair. Trading fees are added to the pool, and automatically accrue in real-time. You can claim the trading fees by withdrawing your liquidity in the pool. For ease, we factor your accrued trading fees into the APY calculations.

Pool rewards are auto-compounded once a minute. They are sold to purchase more LP tokens on your behalf, and automatically compounded into your stake. As such, pool rewards increase the amount of LP tokens you own over time.

Auto Compounding

We want to bring auto-compounding to the masses!

BCharity's unique vaults automatically compound. Thanks to Polygon's extremely low transaction fees, we're able to compound vaults automatically once five minutes!

Some vaults even have their own reward tokens, depending on the strategy. BCharity takes these rewards and sells them to increase your position! Our auto-compounding strategies ensure your position is always automatically increasing!

Still harvesting and compounding manually? Let our auto-compounding vaults do the grunt work for you!

One of our goals is to enable the auto-compounding of farms that don't support it. We're adding value to other yield aggregators by making them even more performant! Our vault code is forked from Autofarm for this reason.

In the future, we will be auto-compounding a variety of yield aggregators, some of which may already auto-compound. Thus, auto-auto-compounding was born!

Burning Vaults

Burning vaults are a special kind of vault. They are used to manage the burn rate of fees and have their own distinct benefits.

Instead of immediately burning all fees, we opt for a slow burn, gradually growing over time.

Here's how it normally works:

Say we have $10,000 in fees to burn. Most other yield farms would just take a portion ($1,000, for example), to buy back their own token and send it to a burn address.

This ends up with $9,000 leftover in fees and a bump in the token price temporarily.

Eventually, there won't be any more fees to burn. The price of the token will gradually trickle down to zero, as there is now no price incentive to farm.

What does BCharity do differently?

Instead of the above, our methodology is to take some of the burning fees and stake them in a vault, for example, AAVE-USDT. We then burn the earnings from the vault.

Going back to our $10,000 example above:

$3,000 is set aside for ad-hoc direct burning, and the remaining $7,000 is staked in a vault, generating a humble but consistent $30 per day. The key here is consistency: it will continuously generate $30 per day.

As deposits increase, the fee vault grows, generating more rewards to burn.

This avoids the price gradually reducing to nothing, making BCharity farming more sustainable for the long-term.