🗳️Vaults

Auto Core Vaults

Auto Core Vaults are investment instruments that employ a specific set of strategies for yield farming. They make use of automation to continually invest and reinvest deposited funds, which help to achieve high levels of compound interest. By using a Auto Core Vault to compound your gains, you save thousands of transactions with their associated gas costs, and precious personal time. Instead of manually harvesting and selling rewards, buying more tokens, and reinvesting that continuously, a vault does all that automatically at a high frequency.

Vaults are the core of the Auto Core ecosystem. In a Auto Core vault, you earn more of the asset you stake in it, regardless if this is an liquidity pool (LP) token or a single asset. For Example vaults where one can stake LP will result in more LP over time, effectively growing your share in the liquidity pool and thus allowing for more and more fees and rewards over time.

Despite the name 'Vault' suggests, user funds are never locked in any vault on Auto Core. One could always withdraw from a vault at any moment in time. Auto Core also does not own user funds staked in vaults. However, it is generally best to view vaults as investment tools to store funds for the medium to long term in order to have the effects of compounding really kick in.

When browsing the vaults on the platform, you will see the annual percentage yield (APY), which takes the frequent compounding into consideration compared to annual percentage rate (APR) which does not. You will also see daily interest percentages and the total amount invested in a vault by all users (TVL). Furthermore, one can see what underlying platform the vault is using as a source of revenue.

After depositing tokens to a vault, the user is supplied with vault specific rigTokens which represent their share in the vault and are also known as receipt tokens. You'll need these tokens to take out your assets from that vault. If you transfer rigTokens to another wallet, that wallet will be able to take out your funds from the vault so make sure you keep these tokens safe.

Summarizing, vaults can:

• Efficiently execute yield farming strategies.

• Compound rewards into the initially deposited token amount.

• Use any asset as liquidity.

• Provide one asset as collateral for another.

• Manage collateral at a safe level to mitigate liquidation.

• Put any asset to work to generate a yield.

• Reinvest earned profits.

Users can sit back and relax, and watch their investment grow!

Vaults Fee

All vaults on Auto Core have a small 0.01% platform fee which is deducted when you deposit your assets into the vault.

50% of the total fee collected is used to reward $ACORE stakers and the remaining 50% is used for maintenance or for future updates/features on Auto Core.