Cycle Finance
Vault compounding
Reinvesting rewards and compound growth
Cycle vaults take deposited funds and stake them in a 3rd party reward program. The rewards earned from this program can be reinvested at any time. This simply involves:
    Swapping the rewards for the necessary tokens that make up the deposit token, usually an LP token
      ex. PNG rewards from the AVAX/PNG vault will be swapped to half PNG and half WAVAX
    Providing those tokens as liquidity to receive that LP deposit token
    Adding the received LP tokens back into the principle vault fund
This outlines an example of a compounding strategy. Every time rewards are reinvested, the principle fund grows and vault share holders increase their LP position.
To keep this process moving, a small call fee will be sent as WAVAX to the caller of the reinvest operation. This is a small, adjustable percentage of the rewards earned. See more details on the Reinvest page.
Last modified 1mo ago
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