Brain Vaults are Godwoken L2's first auto compounding vaults which optimize and increase your yield without any action needed from your side! By depositing into Brain Vaults you can grow your LP position automatically by auto-compounding the rewards earned.
Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it. - Einstein
To really maximize your yield farms, you need to be compounding your rewards back into your investment. Below is a sample of what compounding will do for you over the course of 1 year.
APR = Simple Interest
APY = Compound Interest
2. Our Vaults Auto-Compound
Our vaults auto-compound your tokens for you. And because the transaction costs are SO LOW on Godwoken, we are able compound your rewards multiple times EVERY DAY!
Normally you have to run through following transactions to compound your farm investment for USDC|eth-CKB farm on YokaiSwap on Godwoken v1.
Harvest rewards, receiving YOK
Sell 1/2 YOK for eth-CKB
Sell 1/2 YOK for USDC
Use the new USDC and eth-CKB to create the USDC|eth-CKB LP Token
Deposit LP Token back into Farm
Handle the leftover dust from creating the LP token
In order to derive the maximum returns this process needs to be repeated as many times as possible in least amount of time. You can set alarms or reminders & try managing yourself or INSTEAD YOU CAN LET BRAIN VAULTS DO IT ALL FOR YOU.
Our vaults repeat this process multiple times a day, growing your LP position and ensuring you get the highest bang for your deposit!
In some countries, every single transaction is considered a taxable event. This is a nightmare for yield farmers, especially if you are compounding (see the steps to compound in the section above).
However, with vaults you only have to account for the deposit and withdraw transactions to and from the vault, and the vault does the rest in smart contracts. This massively simplifies tax accounting for DeFi.
Deposit Fee - 0%
Withdrawal Fee - 0.1% to the treasury for development costs
*Reward Fees - 4%
*Reward fees are only applied on the farming rewards, not on your initial investment