How is high APY achieved?

Last updated 1 year ago

How is high APY achieved?

This section will help you to understand why you can get higher APY in Baklava Space It is not magic, but a combination of risk-management, optimization and automation in our platform. The details are below:

Keep earnings
When you provide liquidity in Baklava Space, you retain all/most of your original earnings. Say for Auto-Compound vault (TraderJoe, Pangolin, others), Baklava Space have not charged management fees since launch (valid at time of writing, Q2 2023). For example, if you stake 100 AVAX-WETH.e LP from TraderJoe to Baklava Space, you can withdraw 100 LP + the compounded rewards anytime. For more complex vaults which we charge a small fee, and as of June 2023 the only vault which has a fee is leverage faults, and our fee structure is much more competitive. Say for Leverage GLP vault JonesDAO charges 20% management fees on leverage profit while we only charge 10% (valid at time of writing, Q2 2023).
Compounded earnings Baklava Space will perform automation to continually invest and reinvest the deposited LP/tokens, which help to achieve high levels of compounded interest. By using Baklava Space to compound your gains, you save thousands of transactions with gas costs, your effort and time. Instead of manually harvesting and selling rewards, buying more tokens, and reinvesting that continuously, Baklava Space does it for you, automatically.
For example, user staking AVAX-WETH LP will result in more AVAX-WETH LP over time as the reward is being reinvested into the same pool, effectively growing your share in the liquidity pool and thus allowing for more and more rewards over time. For example, if you have 100 AVAX-WETH.e LP from TraderJoe with 3.65% APY yield and you will get 103.65 LP by the end of the year. By using Baklava Space, we will perform the automation to reinvest the deposited LP. By the end of the year, you will get at least 103.71 LP excluding $BAVA rewards, which will be even more. You will save time. fee, and effort to do it manually because you cover it for you.
Leveraging earnings
Baklava Space vault strategy is to deploy funds on staking platform that provides a base APY, e.g. GLP tokens. To achieve higher APY, Baklava Space vault borrows from USDC lending vault to leverage up the GLP position. In addition, Baklava Space helps to auto-compound the yields from the strategy. Thus achieving a higher APY.
Get $BAVA tokens You will also be rewarded with inflationary $BAVA tokens for participating in the ecosystem. So, other than the compounded LP, you will be rewarded with $BAVA tokens, which will increase your total yield. For early participants, the emission rate (aka APY) will be considerably higher. You can find more details and please note the $Bava reward token lock.

Please note that, most value shown is based on daily compounding frequency, and please note that usually $Bava inflationary rewards have an unlock schedule.

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Last updated 1 year ago

Keep earnings
When you provide liquidity in Baklava Space, you retain all/most of your original earnings. Say for Auto-Compound vault (TraderJoe, Pangolin, others), Baklava Space have not charged management fees since launch (valid at time of writing, Q2 2023). For example, if you stake 100 AVAX-WETH.e LP from TraderJoe to Baklava Space, you can withdraw 100 LP + the compounded rewards anytime. For more complex vaults which we charge a small fee, and as of June 2023 the only vault which has a fee is leverage faults, and our fee structure is much more competitive. Say for Leverage GLP vault JonesDAO charges 20% management fees on leverage profit while we only charge 10% (valid at time of writing, Q2 2023).
Compounded earnings Baklava Space will perform automation to continually invest and reinvest the deposited LP/tokens, which help to achieve high levels of compounded interest. By using Baklava Space to compound your gains, you save thousands of transactions with gas costs, your effort and time. Instead of manually harvesting and selling rewards, buying more tokens, and reinvesting that continuously, Baklava Space does it for you, automatically.
For example, user staking AVAX-WETH LP will result in more AVAX-WETH LP over time as the reward is being reinvested into the same pool, effectively growing your share in the liquidity pool and thus allowing for more and more rewards over time. For example, if you have 100 AVAX-WETH.e LP from TraderJoe with 3.65% APY yield and you will get 103.65 LP by the end of the year. By using Baklava Space, we will perform the automation to reinvest the deposited LP. By the end of the year, you will get at least 103.71 LP excluding $BAVA rewards, which will be even more. You will save time. fee, and effort to do it manually because you cover it for you.
Leveraging earnings
Baklava Space vault strategy is to deploy funds on staking platform that provides a base APY, e.g. GLP tokens. To achieve higher APY, Baklava Space vault borrows from USDC lending vault to leverage up the GLP position. In addition, Baklava Space helps to auto-compound the yields from the strategy. Thus achieving a higher APY.
Get $BAVA tokens You will also be rewarded with inflationary $BAVA tokens for participating in the ecosystem. So, other than the compounded LP, you will be rewarded with $BAVA tokens, which will increase your total yield. For early participants, the emission rate (aka APY) will be considerably higher. You can find more details and please note the $Bava reward token lock.

Please note that, most value shown is based on daily compounding frequency, and please note that usually $Bava inflationary rewards have an unlock schedule.