❓Strategies FAQ

What is a Vault Strategy?

Magik Farm’s vault strategies are modular smart contracts that tell it what assets to farm, and where it should sell the farmed assets. Rewards are regularly harvested, swapped for the original vault asset, and deposited again for compound farming.

Who is in control of the strategies?

While a number of the vault strategies are owned by the MAGIK multisig per protocol request (in cases amendments are needed later), others' strategy link is hardcoded, and the code has been built to be immutable, so once they are renounced, they become unstoppable. To release a new strategy on any asset, a new vault and strategy smart contract must be built.

How can I make a strategy?

For now you can post and discuss your strategy in Magik Farm’s Discord in the #vault-strategies channel.

What is APR and APY?

APR reflects the simple interest rate over a year’s time, while APY describes the rate with the effect of compounding.

Is APY/365 the right way to determine daily gains?

No, the effect of compounded interest is exponential, not linear. A daily compounded interest of 1% would yield 3678.34% a year.

How does Magik Farm optimize APY?

Magik Farm automates the whole compounding process, maximizing your yield. The compounding frequency depends on different variables in the system, like TVL, APR and strategy fees.