Single Asset Autocompound
Single Asset Autocompound
These vaults use Tetu's single asset Tetu Farm vaults to generate yield, but continuously compound all claimable rewards from the Reward Boosting System into the underlying asset. This strategy requires little maintenance from the user at the cost of the early withdraw penalty and lack of TETU rewards.
Governance proposal TIP-009 mandated that the early withdraw fee for the rewards boost system would lowered from 70% to 30%, with the implication that autocompounding vaults will generate 70% of the yield that single asset Tetu Farm vaults provide. This fee is partly incurred due to the the systematic selling of the TETU rewards these vaults receive.
With the cost of less yield, you gain the convenience of having all rewards directed into the underlying deposited asset, requiring no maintenance of the position other than depositing and withdrawing, which also provides a more composable solution for future integrations.
Fees
Single asset autocompounding strategies use the Tetu farm strategies as their underlying, with the farmed TETU being claimed immediately without the reward boost and then swapped to the underlying asset and auto compounded into the vault. As the fees are already charged when rewards are swapped for TETU in the underlying vaults, there are no additional fees for these strategies.
Risks
Being based on Tetu's single asset vaults, the underlying deposited is not susceptible to impermanent loss unlike liquidity pool autocompounding. These vaults have the same risk profile as Folding Strategies, such as high utilization of assets supplied to lending platforms.
Breakdown:
- Uses single asset Tetu Farm vaults to generate underlying yield
- Sells all claimable rewards to buy more underlying
- No Impermanent Loss
- 30% less yield than single asset Tetu Farm vaults
- Does not receive TETU rewards
Resources:
Last modified 23d ago
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