🔓Vaults
A description of the "vaults" that automatically manage user funds.
What is a Vault?
Vaults are investment instruments that employ a specific set of strategies on LP farmers’ behalf. They make use of smart contracts to continually invest and reinvest deposited funds, maximizing your yield potential. By using a Magik Farm vault to compound your gains, you save thousands of transactions and their associated gas costs, as well as precious personal time.
In a Magik Farm vault, you earn more of the assets you’ve staked. For example, staking MAGIK-FTM LP in its vault will result in compounding MAGIK-FTM LP over time, increasing your share of those underlying tokens.
User funds are never locked in any vault on Magik Farms (except in the case of incentivized locked staking vaults). You are free to deposit or withdraw your tokens at any time - but it’s generally best to view vaults as investment tools to store funds for the medium to long term in order to have the effects of compounding really kick in.
When browsing the vaults on the platform, you will see the annual percentage yield (APY), which takes the frequent compounding into consideration compared to annual percentage rate (APR) which does not. You will also see daily interest percentages and the total amount invested in a vault by all users (TVL). You can also see what underlying platform the vault is using as a source of revenue.
We look at vault requests via our official discord where anyone is free to submit vault requests.
In summary, Magik Farm vaults can:
Efficiently execute a comprehensive array of yield farming strategies.
Reinvest and compound earned profits at an optimal rate.
Act as a passive deflationary mechanic for the underlying tokens, raising their value in aggregate.
Automated Profit Taking (coming soon)
Multi Vault Algorithmic Strategies
NFT Vault Integrations
Leverage and pseudo delta neutral strategies with automatic yield financed debt repayment
Boosted rewards governance voting
Index vaults and multichain vaults
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