Vaults

The Stackswap vaults follow a specific strategy that involves a pool on a third-party farm. When tokens are deposited into an Stackswap vault, they are automatically reinvested into the farm, and the rewards generated are also automatically compounded. The third-party farms provide incentives for holding or "staking" particular tokens, and these rewards are usually paid in the native token of the farm. Our smart contracts take care of exchanging these rewards for the staked tokens and reinvesting them back into the farm. This results in a compounding effect on the staked tokens, where the process of receiving and reinvesting rewards generates additional interest.

Auto-Compound:

When a compound operation is performed on a vault, the assets of all users in the vault are compounded. This compounding may occur if any of the following conditions are met:

• Upon making a deposit.

• When a withdrawal is made.

• During an incentive compound operation.

• During a community compound operation.

• If the amount of pending rewards reaches 0.2% and is higher than the cost of the compound transaction.

Stackswap's Vaults decentralizes the process of executing a compound operation. Any individual can perform a compound and receive a reward in return. The reward paid to those who execute compounds, known as "vault bounty hunters," is 0.2% of the assets waiting to be harvested. If the value of these assets exceeds the cost of the compound transaction, it becomes financially viable for anyone to execute the compound.

Recipient Tokens

Stackswap's vaults utilize recipient tokens. When you make a deposit in one of these vaults, you will receive a token representing your deposit. When you request a withdrawal, this token will be removed (or "burned") from your wallet. This system allows for integration with other protocols and enables users to move their deposits to cold storage wallets if desired