Comment on page
The concept of vault shares will be illustrated in the following demonstration. Note that I have $1.20 USDC and am about to deposit it into the DINO vault using the Zap function. After depositing my $1.20 USDC will start generating Yield Farming earnings in the vault and I will receive xDINO vault shares tokens representing my deposit.
Please don't send these deposit tickets to other addresses as they are required to withdraw funds from the vault.
After making the $1.20 USDC deposit you can notice that I have received 8.75 xDINO tokens which are my Deposit Ticket. This deposit ticket represents 9.19 DINO tokens generating earnings in the vault.
I received 8.75 xDINO vault shares because their Price Per Full Share is 1.049421 DINO. The DINO vault uses the autocompound strategy, which sells 99% of Yield Farming earnings and deposits them in the vault. After this process of farming and autocompound, the vault's PPFS increases relative to the underlying asset.
Let's say that after some time the vault accumulates Yield farming earnings and the PPFS is now 1.8765432 and I decide to add another 100 DINO tokens to my position, upon depositing 100 DINO I will receive 53.28947396 xDINO (100/1.8765432) and my position current will now be 62.03976932 xDINO which worth 116.42 DINO.
Now a new example, I still have the same amount of 62.03976932 xDINO, but after a good result from Yield Farming, the PPFS is now 3.123456 which worth 193.77 DINO. I decide to withdraw 93.77 DINO to realize profits and leave 100 DINO Yield Farming in the vault, after the withdrawal I will have 32.01581838 xDINO vault shares which worth 100 DINO.