Understanding Vaults
The Vaults
The Vaults pools users' deposits and automatically invests the pooled assets into a Vault's set Strategy. It then auto-harvests liquidity rewards and sells them into the asset with the highest premium, compounding periodically.
The Vaults product was created to offer high-performing yields in the most efficient and optimized way possible as the DeFi market continues to explode. Unagii is set to serve amidst the rising complexities of yield opportunities so even retail crypto users have a trusted way to participate in DeFi without worrying about contributing time, effort, cost, and the technical knowledge to monitor and implement yield farming strategies themselves.
Stash Vaults
Stash Vaults offers users an excellent way to yield on stablecoins such as DAI, USDC and USDT, earning the highest yields on the best performing stable pools in the market.
Risks here have been abstracted down to stablecoin issuer risks, third-party protocol risks i.e. Compound Finance and Curve Finance (plus any associated platforms included in the strategy), and Unagii Vaults protocol risks.
Growth Vaults
Growth Vaults is where we offer opportunities for users to go for growth on non-stable crypto assets like ETH and WBTC. These Vaults yield on alpha strategies that come with greater risks but much higher potential returns.
How to use Vaults?
Deposits
Users can easily start earning yield by depositing their crypto assets into the Vaults. Once a user has connected their Ethereum wallet, a deposit takes 3 simple steps:
- 1.Select asset to deposit
- 2.Enter amount to deposit
- 3.Choose gas fee option (slow, standard, fast) to approve and confirm deposit (ETH gas fee payable)
No additional steps required to further stake any tokens to boost yields. The Vaults automates the harvesting and selling of liquidity reward tokens earned in strategy, giving users complete convenience and optimized yields.
Withdrawals
When a user decides to remove their assets from the Vaults, a withdrawal takes 3 simple steps:
- 1.Select asset to withdraw
- 2.Enter amount to withdraw
- 3.Choose gas fee option (slow, standard, fast) to confirm withdrawal (ETH gas fee payable)
Withdrawals can be done anytime. There is no lock in period, but do take note of the ETH gas fee payable relative to the size of your deposits and earnings.
Bonus
In some instances under a Convex or Curve Finance strategy, deposits/withdrawals may receive some bonus that will be reflected in a user's balance. Bonuses occur when depositing/withdrawing assets with a price premium and/or for an asset with the lowest share to help rebalance a strategy's liquidity pool.
Slippage
Deposits/withdrawals from Convex or Curve Finance strategies may be subjected to some slippage that will be reflected in a user's balance. Slippage occurs from any price volatility and from disrupting a strategy's liquidity pool balance with assets that are less valuable (relative to the pool's other assets).
For deposits, it is recommended to leave your funds in the Vaults for a few days to offset any slippage.
Fees and Gas Cost-Savings
Unagii as a platform has one of the lowest fee model:
Deposit Fee
Withdrawal Fee
Management Fee
Performance Fee
None - 0%
None - 0%
None - 0%
10% (deducted from earnings)
Unagii reserves the right to amend the fees at any point of time. Users will be notified of any fee changes at least one month prior to changes taking effect.
Unlike Unagii, many other aggregators and DeFi robo-advisors often alienate the average retail yield seeker with high fees at every touchpoint, in addition to gas fees users have to incur (which can be an exorbitant amount during peak congestions on the Ethereum network).
Gas Fees
Gas fees are payable by the user and is required for transactions by any DeFi product on the Ethereum network. The speed or amount of Gwei used affects the price of the payable gas fee and how long a transaction will take to confirm.
Higher Gwei = Higher ETH payable = Faster transaction speed
Users will need to ensure they have sufficient ETH in their wallet to pay for gas fees upon approval of permission for Unagii smart contract use, upon confirmation of a deposit, and on confirmation of a withdrawal.
Gas Cost-Savings
Unagii Vaults helps users with gas cost-savings, especially for heavy DeFi yield farmers and new users curious about liquidity mining. Unagii users will save on not needing to make costly daily transactions to stake, claim, and compound their earnings - that's at least 3 transactions saved over 3 days basis.
Yield farming directly with a DeFi protocol may require users to manually stake their pool tokens received (that represent their share of ownership in the pool) to mine for governance tokens. For some, users acquire pool tokens on one platform, then harvest on another aggregator. They can then sell off the governance tokens, participate in the DAO, or further boost rewards by locking up the asset (e.g. in the case of CRV vote locking with Curve).
Unagii Vaults helps to automate this yield farming process, providing users with convenience and much needed gas cost-savings.
Last modified 8mo ago