Vaults

Overview

Vaults on Elys Network allows users to deposit assets to serve as lending pools. Users borrow from these pools to open Leverage LP positions.

By depositing assets to the vaults, users lend assets to borrowers to open Leverage LP positions. Open Leverage LP positions pay interest to the vault, starting at 12% APR and can go as high as 30% based on amount borrowed relative to the vault size. Additionally, some vaults will be incentivized by governance for bonus EDEN rewards. The maximum borrow for Leverage LP is a governance parameter, currently set to 35% for a liquidity pool.

How It Works

USDC Vault

USDC Vault does not require any bonding period.

By depositing USDC, you actively participate in the Leverage LP feature. Staking USDC essentially acts as a form of lending:

• You lend your USDC via the vault.

• Users of Leverage LP borrow these funds, and in return, they pay fees that are transformed into rewards for you, along with bonus rewards, paid as:

  • USDC from fees (claimable)

  • EDEN (as applicable) from bonus rewards (claimable)

Other Token Vaults

Similarly these vaults do not have a bonding period.

By depositing Tokens into these vaults, you actively participate in the Leverage LP feature, lending to borrowers to open Leverage LP positions.

• Example: You deposit your wBTC to the vault.

• Users of Leverage LP borrow these, and in return, they pay fees that are transformed into rewards for you paid as:

  • USDC from fees (claimable)

  • EDEN (as applicable) from bonus rewards (claimable)

  • Vault token (example: wBTC) from open interest, added to your existing vault balance (can be withdrawn any time)