ArcherSwap's vaults enable users to deposit LP tokens, unlocking the potential to earn additional rewards on their deposits. A vault operates as a smart contract strategy, employing an algorithm designed to automate the intricate process of auto-compounding assets. To illustrate, in conventional yield farming, users contribute LP tokens and receive a reward token in return.
By opting for a vault and initiating the "Compound" action, the vault performs a series of automated steps. This includes harvesting pending rewards, selling half of the reward tokens, using the proceeds to purchase paired assets, and employing those assets to add liquidity. Consequently, this process leads to an automatic increase in the user's LP token holdings.
ArcherSwap's vaults distinguish themselves by providing users with auto-compounded rewards that surpass those offered by non-compounded rewards in traditional yield farms. This not only enhances potential earnings but also minimizes user efforts, reduces gas fees, and safeguards their profits.
There are no deposit fees. Standard withdrawal vault fees are set at 0.1%. This is to prevent bad actors from going in and out of the vault quickly to reap the harvest and then leaving. Many of the vaults will allow the users to generate returns over the withdrawal fee in less than 24 hours.
How the vault strategy works on ArcherSwap
Either the contract or the user calls compound
The Contract harvests the reward
99.5% of the harvest is compounded back to the user’s deposits (LP tokens)
0.5% of the harvest is used to buy WCORE to reward the caller of the compound button.