Auto Vaults (Compounding)

Vaults are pools of funds with an associated strategy for maximizing returns on the asset in the pool. Vault strategies are more active than just lending out coins like in farming. In fact, most vault strategies can do multiple things to maximize the returns. This can involve supplying collateral and borrowing other assets such as stable coins, providing liquidity and collecting trading fees, or farming other tokens and selling them for profit. Each vault follows a strategy that is voted in by the community.

Thus vault is a new way in a DeFi ecosystem that allows its user to earn more returns while lending the coins through automation of the strategies of lending and borrowing of the coins.

DeFi has been evolved to provide interest over the crypto assets and allow them to be borrowed or lent. The system has interest rates that are designated per market from both the supply side and the borrowing side. Interest rates are also applicable for governance tokens (BFP) that are created on Barn’s Finance.

So an investor in a farming user puts coins for stake at a certain time and it then gets mature the coins are returned then for the next yield user again has to stake the part. However, in vaults, these coins will be auto yielded to the farms again and thus allowing users to earn more tokens automatically without interfering in the system. Compounding is done through the vaults which will keep on auto yielding so, these auto vaults will be compounding on deposited coins than just yielding the native tokens thus making it more convenient and profitable for the end-users.

Following is our proposed fee policy and features for vault, as vault will allow to stake systems native token BFP

Fee

0.1% un-staking fee if withdrawn within 5 days. Adding a new BFP to the pool will reset the timer. If un-staking BFP after 5 days, no fee will be deducted. Any accumulated un-staking fee goes to the dev wallet which will be burned

Bounty

Bounty will be provided as a reward for providing a service to other users, like helping activate the auto vault pool’s function for other users.

This bounty is given as a reward for providing a service to other users. When you successfully "Claim" the bounty, you are also activating the Auto Vault Pool’s compounding function for everyone. Auto-Compound Bounty: 0.25% of all Auto Vault pool users pending harvest.

Performance Fee

2% performance fee in the Auto Vault native token which contributes: 0.5% fee goes to the bounty collector 1.5% fee goes to dev wallet which will be burned