š Espresso (Vaults)
Compound and Chill
Espresso, our terminology for Vaults
Vaults are designed to optimize yield-farming, allowing access to various yield-farming and staking pools all over the Kucoin Community Chain (KCC). Our vaults employ various strategies that make use of automation to continually harvest and reinvest staked funds, this exploits the power of compounded interest. In Espresso, you earn more of tokens the asset you stake in it; this applies both to Liquidity pool tokens (LP) or single asset. For example, vaults where one can stake KAFE-KCS LP will result in more KAFE-KCS LP over time, effectively growing your share in the vault and thus allowing for more and more rewards over time.
Are my staked assets locked in a Vault?
No, assets are never locked in our vaults. That's why we named it Espresso and not coffee bean locker. Your assets will always be available to you and only you to unstake or stake more anytime that you wish to.
How to make sense of each Espresso option?
While scrolling through the list of options that KuKafe Espresso offers for your yield-farming needs. You'll see the Daily interest, the APR (Annual Percentage Rate) and the APY (Annual Percentage Yield). The Daily interest rate gives you a clear view of the ROI in 24hours. The APR gives you the interest rate that you get if you had left your asset staked for 1 year. Lastly the APY gives you the actual interest rate that you will get by staking your asset in Espresso for 1 year due to auto-compounding.
After you stake your asset, 2 numbers will appear at the bottom; Capital and Current. Capital refers to the amount of asset that you have staked with the respective up-to-date market value of your asset. Current refers to the amount of asset that you currently have including all the rewards that were harvested and reinvested back into the vault along with the respective up-to-date market value.
I see that I have kukafeTokens in my wallet, what are they?
This are vault shares and can be seen as a receipt that you get when staking assets in Espresso vaults. These receipts are then used to redeem your corresponding assets when withdrawing from Espresso vaults. This process is completely automatic and transparent to the user. The kukafeTokens are represented in the following format:
Vault shares are not given in a 1:1 fashion and merely represent your share in the vault. Your underlying staked asset will grow in number but vault shares will remain a constant assuming that you neither withdraw nor stake more assets in to the Espresso vault. Users should never sell or send these tokens to anyone else if they wish to retain ownership of their assets in the Espresso vaults.
How can I find out the strategies used for each Espresso Vault?
Enter KuKafe Health, we've trawled the ecosystem and we could not find something that shows the strategies used per vault and so we built one ourselves. KuKafe Health has a treasure trove of information:
Addresses for each Espresso vault
When did the vault last compound
What is the interval at which it compounds
The profits that it is compounding
Total Value Locked (TVL) in that vault
Since I know the strategies, why can't I do it myself?
Because we've done it for you, at a very low cost. We maintain the servers, the scripts, the contracts and everything for you. So sit just "Compound and Chill" and let us do the work for you.
What are you charging for usage of the Espresso Vaults?
At KuKafe we pride ourselves on offering the lowest fees for usage of our Vaults in KCC. That is because we built this product around a necessity that even we use ourselves, and no we are not exempted from the fees.
Most vaults have a 3.5% performance fee, of which half goes to the reward pool which pays out to $KAFE stakers eventually and the other is split into 30% for marketing and growth and another 20% to the treasury which is used to further develop the product and make new features available. We have already pre-calculated the Daily and APY values for you, what you see is what you get.
Vaults also have a withdrawal fee of 0.1% and this is mainly set in place to prevent bad actors from exploiting the system.
Information on our Espresso Vault Cards
The Espresso Vault cards contain a ton of information and you can go through them from this image.
Shows you the icon of the LP of the Espresso Vault
Shows that this Espresso Vault is boosted
Takes you to the page to add liquidity
Show you how many LP you have staked currently
Daily Interest
Compounded Annual Interest
Total Value Locked (TVL)
Shows you the ratio of 1 Espresso Vault Shares to its corresponding LP
Shows you how much of the TVL is currently being boosted
Tracks how much capital LP you have staked and the current LP that you own, along with the percentage gain
Shows clearly the fees associated with the usage of the Espresso Vault
How do vaults get added to KuKafe.Finance?
We are extremely receptive to the community and would consider most vaults suggestions as long as the demand is high enough for one. Head over to our telegram chat to find out more about getting your favourite vault added to KuKafe's platform.
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