Vaults

The core of vault strategies seek to maximize gains of underlying tokenized assets for users, whether liquidity pairs (“LP”) or single tokens by automatically selling reward tokens granted by established platforms into the underlying asset, thereby offering a hands-free auto-compounding service.

1. Vault Fees

Every vault charges deposit fees which are applied to the underlying asset entering the vault. There will also be profit fees, which are essentially a form of deposit fees on any re-compounded principal. Fees act as a deterrence against bad actor interactions with the contract while forming the basis of according an intrinsic value to the Token.

• Deposit Fee: 1% (modifiable but contract max of 4%)

• Performance Fee: 20% (modifiable but contract max of 20%)

Native token liquidity pools (AVTO-MATIC JLP / AVTO-USDC JLP) and the AVTO single token staking vault will have no fees. The Foundry will be whitelisted to have no fees (since fees go back into the Foundry anyway and wastes gas).

2. Loyalty Multipliers

Every vault comes with a built-in multiplier feature. As emission allocations are fixed on a vault-level, the multiplier simply increases the user’s share of Token emissions allocated to that vault at that point in time, where on a per block basis:

$Tokens(user) = \frac{TVL(user)*Mult(user)}{\sum_{i=0}^n TVL(i)*Mult(i)}*totalTokenEmission$

The multiplier starts at 1.0x (100%) on deposit. The multiplier increases by +0.1x (+10%) every 24 hours up to +3.0x (+300%) after 30 days, capping to a max multiplier of 4.0x (400%).

The multiplier works on a time weighted average basis; thus, withdrawals or unstaking actions do not affect the multipliers. Instead, every new deposit (whether manually by the user or automatically via auto-compound) will reduce the effective displayed multiplier.

In other words, this multiplier works simply as a competitive TVL amplifier which further incentivizes long-term farming while adding a small gamified element to the experience.

Multipliers for the native token liquidity (AVTO-MATIC LP, AVTO-USDC LP, AVTO Foundry staking) will also be 10x over 90 days similar to the profit-sharing multiplier via the Dividend Pool.

3. LP Zap

Our platform offers a convenient fuss-free service to convert MATIC and any other highly liquid tokens into any liquidity pair on any major DEX by clicking a single button. This is our LP Zap.

Expected input:

• Input token

• Liquidity pair token A

• Liquidity pair token B

• DEX LP platform

A one-click LP Zap button is on the front-end for each vault to enhance the user experience.

For the other direction of the zap, it is ideal that the API scans a list of LP tokens from the connected wallet and displays them automatically in a list. The user only then needs to decide whether to break up the LP tokens (and how much) into their constituent tokens, or to “zap” them into their desired token (such as MATIC).

In either case, an origination fee of 1% is charged by the platform on the input token for a Token->LP zap. These fees go into the Foundry.

Currently the input token only accepts MATIC and will be expanded in the future.