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Vaults
Investment tools called vaults use a particular set of yield farming techniques. To continuously invest and reinvest deposited cash, they use automation, which contributes to large levels of compound interest. You can avoid thousands of transactions, their related gas expenses, and valuable personal time by compounding your gains by utilizing an BEE AI LABS vault. A vault performs all of these tasks automatically and frequently rather than manually collecting and selling rewards, purchasing additional tokens, and continuously reinvesting those funds.
The foundation of the BEE AI LABS ecology are vaults. Whether you stake a liquidity pool (LP) token or a single asset in an BEE AI LABS vault, you will profit more from it. For instance, staking BTC-BNB LP in vaults will produce additional BTC-BNB LP over time, thereby increasing your part of the liquidity pool and enabling ever higher fees and payouts.
Contrary to what the name "Vault" might imply, user funds on BEE AI LABS are never kept locked in any vault. A vault was always available for withdrawal at any time. Additionally, BEE AI LABS does not own user money that is deposited in safes. To effectively benefit from compounding, it is often advisable to think about vaults as investment tools for medium- to long-term money storage.
You can compare the annual percentage yield (APY), which considers frequent compounding, to the annual percentage rate (APR), which does not, when viewing the vaults on the platform. Additionally, you will see daily interest percentages and the total sum that all users have invested in a vault (TVL). Additionally, it is possible to observe the underlying technology that the vault uses to generate revenue.
Each vault can either refer to a single token stored in lending platforms or single-stake reward pools, or a pair of tokens held in liquidity pools, such as CAKE-BNB LP tokens within the Binance Smart Chain ecosystem. The user receives vault-specific BLAB, which represents their stake in the vault, after putting tokens into a vault. In the part after BLAB, we go into more detail.
Anyone in the Beehive is free to collaborate on developing fresh ideas and submitting them for review by the BEE AI LABSteam. A new vault won't be accepted, nevertheless, if the platform that supports it does not follow the BEE AI LABS SAFU Practices.
- 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.
Users may unwind while seeing their investment increase!!
When you deposit money into an BEE AI LABS vault, you will immediately obtain a BLAB token, which is a tokenized proof of deposit that bears interest. Each BLAB token has a specific vault, so when you put BLAB into the BLAB Maxi vault, you get BLAB tokens. You may think of BLAB as the confirmation of your vault deposit.
Users of BEE AI LABS are advised to hold on to their BLAB and not sell or exchange it because doing so would result in you losing ownership of your staked vault assets.
The vaults at BEE AI LABS automatically produce more of your deposited asset as compound interest. When you keep BLAB in your wallet, the value of the associated vault asset rises. Your wallet's supply of BLAB won't change, but the number of vault tokens they may be exchanged for will. This explains why BLAB does not exactly equal the token quantity that was initially deposited.
You only need to start a withdrawal transaction to exchange the tokens that BEE AI LABS have staked in your account for you. Your deposited assets and the yield will then be returned to you after the BLAB is removed from your wallet and destroyed.
BEE AI LABS system has a few major advantages:
- 1.BLAB allows any user to withdraw their fair portion of the money they've put up
- 2.For maximum security, the system lets you deposit the BLAB receipt into a hardware or cold wallet
- 3.As you don't reveal your identity toBEE AI LABS, your privacy is protected. Since the BLAB are the only indication of your part in the vault, your funds there are not associated with the wallet address from which you made the deposit. Consequently, if you transferred your BLAB to another address, you may withdraw your half of the money from that location
- 4.BLAB may provide tax advantages. Our BLAB not only makes bookkeeping a breeze, but because you won't be selling your rewards or getting staking rewards directly to your wallet, you won't be subject to tax obligations the way you would if you were farming your own yield.
- 5.Finally, BLAB can be used as interest-bearing collateral.
Typically, vaults are harvested several times each day, and profits are automatically reinvested (compounded). You can use it to determine a vault's pace of harvesting and compounding.
Although they could, vaults help you maintain appropriate collateral-to-debt ratios, self-optimize for the best rates and automatically reinvest profits. They also save you time and transaction expenses. Manually attempting to achieve this would produce significant inefficiencies. "Sit back and relax, the vault does all the work for you," is a popular saying at BEE AI LABS.
The majority of vaults include a performance fee system that deducts a portion of each harvest payout. This fee on earnings is divided and given back to BLAB investors, allotted to BEE AI LABS's treasury paid to the strategist who created the vault, and sent to the person who is in charge of calling the vault's harvest function. These costs are already included in the daily rate and APY of each vault. You don't have to figure things out on your own. The performance fee and a breakdown of the fee structure are shown in a vault within the Deposit and Withdraw module.
The primary source of income for BEE AI LABS 's platform is the performance fee on increased yield, or vault profits, which is largely dispersed back to ALL investors. A portion of it also goes toward funding BEE AI LABS's treasury, which is then utilized to finance additional platform development, security, and other projects. The performance fee was also put in place to encourage civic participation and community involvement. Our future growth depends on a vibrant and active community, which in turn benefits platform users even more.
Additionally, some vaults charge for withdrawals. This fee's principal goal is to guard against potential bad-faith actors' exploitation. Without the fee, someone could deposit just prior to the execution of the harvest function and withdraw right after that event, pocketing a percentage of the profits made by legal stakes. Fees for withdrawals are divided among the funds in the vault and remain there.
Many of the vaults at BEE AI LABS have "Harvest on Deposit." This implies that whenever you deposit money into the vault, the vault's strategy's harvest function is likewise called. Calling the harvest function causes all pending farm rewards to be gathered and compounded back into the vault tokens for everyone.
BEE AI LABS accomplishes this to make it impossible for criminals to take produce, negating the need for a withdrawal charge. Long-term investors will benefit immensely from this. Almost all of the harvest on deposit vaults on more affordable networks like ETH and Polygon. If there is no withdrawal charge, a vault harvests on deposit.
Due to the harvest call charge, you will be rewarded with the native chain token for depositing and so invoking the harvest function. Due to the high cost of Ethereum transaction fees, BEE AI LABShave established a few regulations that govern how frequently the vault is harvested.
- When a vault's TVL exceeds $100k, it will be collected every three days.
- When a vault's TVL falls between $10 and $100, it will be harvested every 15 days.
- Community harvest when vault TVL falls below $10,000.
Community harvest implies that the strategy contract's harvest function must be manually invoked, and BEE AI LABS will not cover the associated transaction costs.
Another rule watches the gas prices on Ethereum. If
maxGasPrice is 20 GWei or more, harvests will not be executed as they will become too expensive. This is regardless of a vault's TVL. The smart contract and its parameters, as well as past Executions and Task Logs, are also easily accessible there.BNB Chain also has a harvesting constraint in place: Vault TVL is below $10k and older than 2 weeks: community harvest.
No, the performance fees are based on profits and are deducted each time the harvest method is used.
Yes. Our presented APY rates represent the anticipated annual rate of return on a vault. The underlying platform it runs on, the strategy it is dealing with at the time, the overall amount of money in the vault and the impact of compounding are all factors that go towards determining this rate. We also incorporated all vault fees in the APY calculation as a special feature. You receive exactly what you see!
Although BEE AI LABS vaults are audited, this does not imply that they are completely risk-free. The following list of common vault dangers includes:
- The amount of assets placed in the vault is not at risk, but their monetary worth is.
- The biggest risk, like with any smart contract, is that an investor's money would be lost or won't be able to be redeemed. The team does take measures to assess the security risks of smart contracts and will only interact with those that do so after rigorous testing to ensure the underlying platform is free of so-called "rug-pull" functionalities. Please go to SAFU Practices for a thorough overview of the procedures BEE AI LABS follow before adding new vaults.
You can get more information on specific vault dangers, or even better, data on ALL U CAN's vault safety as reflected by the BEE AI LABS Safety Score, here: TBU.
- Money Market: Makes use of loan services like Venus on the BNB Chain in order to maximize the return on these currencies (e.g. BUSD, BNB, USDT, ETH,...).
- Native Token Farming: Using another asset deposited to earn, sell, and multiply earnings of the native reward token, this method takes advantage of the high yield on well-liked farms.
Because at BEE AI LABS you earn what you stake, the default is that you withdraw the token type that you put. You will receive your original deposit plus any yield (minus a potential vault withdrawal fee). Users can withdraw straight into other assets for vaults supporting BEE AI LABS ZAP, such as any assets included in the relevant liquidity pool for ZAP V1 and any bluechip, native, or stable assets supported for ZAP V2.
Vaults for liquidity pools (LPs) operate by reinvested participant fees. A lot of sites give investors tokens as payment for adding liquidity to the pool. These incentives are regularly collected by our vaults, sold, used to purchase further underlying assets for the LP, and then reinvested to finish the cycle.
This multiplies the benefits of a liquidity pool. In contrast to manual farming, BEE AI LABS develops solutions that automate this procedure, saving you time and money on petrol. All of this is accomplished for a small fee that is returned to investors in BEE AI LABS's governance pool or in the BLAB Maxi vault. Additionally, a tiny portion goes to the BEE AI LABS fund.
Prior to being exchanged for the original token deposited, pending incentives are not shown in the balance. Depending on the strategy being used, this can change.
In our Discord channel, new possible vaults can be discussed. The suggested investment plan is then included in our list of strategies by our strategists. Each new, potential strategy is given priority based on its APY, TVL, and sustainability. Then, our developers and strategists start at the top of the list and work their way down. The official forum is where legitimate vault requests should be made. The platform that the vault might deposit into is then carefully examined to see if it has secure smart contracts and no other potentially harmful characteristics. Please see BEE AI LABSSAFU Practices for details on it.
On the platform, each vault is given a name based on the type of token that can be deposited inside. For instance, the CAKE-BNB LP vault makes investments using CAKE-BNB LP tokens. The BTC token is used in a BTC vault, etc.
The platform used to farm the token's yields and invest in them can be found beneath the name of the vault. Uses: Venus, for instance, indicates that a specific vault invests the token in Venus, a synthetic stablecoin protocol and DeFi algorithmic money market.
The following is applicable to loan platforms like Aave, Venus, and others.
Most BEE AI LABS single asset vaults make use of decentralized lending and borrowing markets. By placing your initial asset in the vault, BEE AI LABS place it on the lending market and uses it as collateral for loans at low-risk levels.
The borrowed tokens are returned to the platform and used as collateral once more to borrow additional tokens. In order to create as much interest from the lending interest and the reward token, which is used to purchase more of your initially placed assets, this cycle is repeated numerous times. This technique is often referred to as a folding strategy. It is important to note that this "leveraged" multi-lending and multi-borrowing only uses the deposited vault token, eliminating any risk of liquidation caused by fluctuations in token price.
Transaction fees: Compared to ordinary vaults, these vaults often charge a larger transaction cost for deposits and withdrawals because of the multiple supplies and borrow cycles.
Marketability risk: If the underlying token on the lending platform is overborrowed, it may hinder the vault's deleveraging (unfolding) strategy from allowing for a withdrawal. When the market is most erratic or when a persistent event is taking place and people are trying to borrow money from the lending platform, this typically takes place. Once liquidity returns to the lending platform—a process that could take a few hours or even days—the overborrowed condition will automatically resolve. Money is always safe in the meanwhile.
One may observe that the deposited token quantity gradually decreases between harvests as a result of accruing debt/supply interest. Your deposited token amount will increase following the harvest event as the yields are compounded back into it. The progression of the token deposit amount in a typical lending-type vault is as follows:
The yields are added to the deposited token amount following a harvest event.
Last modified 9mo ago