Introducing… VAULTS!

Polycat Finance

4 min readMay 6, 2021

This is it. We are becoming a hybrid yield aggregator.

We talked about it in our previous article. Our next big step is becoming a yield aggregator, but not a regular one.

Hybrid yield aggregator

Both our farms/pools and vaults will co-exist, we will therefore give our users the choice between farming (fishing?) FISH in our farms & pools like they have been so far, or to stake their funds in our vaults and let us auto-compound for them resulting in juicy returns, or both!

A yield farm + a yield optimizer = a hybrid yield aggregator.

How do vaults work?

Here’s a quote from our previous article:

So what are vaults exactly? Think of vaults as smart farms, where you don’t need to go through the hassle of harvesting your rewards, selling half, adding liquidity again and re-staking that LP. Same thing goes for pools or single tokens, you don’t have to deposit more or compound your rewards yourself.

Normally, in yield farms, the return in a year is reflected as APR, as the native token reward does not auto-compound. With an auto-compounder, the return in a year is higher as it changes to an APY.

Thanks to the very low gas fees on Polygon, we don’t need to calculate empirical optimal intervals to compound your yields. In fact, we are doing it as often as possible, or once a minute. That’s right, when you use our vaults, it’s as if you were compounding your yields every minute. And you don’t have to pay a single cent to do so.

This ensures you only get the best yields without having to do anything yourself. We take care of the harvesting and the optimization through some smart contract magic, which has already been reviewed by a couple of smart people and will of course be officially audited as well.

Like we previously mentioned, our first set of vaults will be using the QuickSwap strategy, followed by AAVE vaults.

But wait, there’s more…

Auto-auto-compounding

We talked about this before but only briefly. Here are some more details.

We are taking the auto-compounding a step further and we’re also going to auto-compound auto-compounders.

This results in even better yields for our users.

Remember, since we compound, the longer you stake, the more you yield. It’s exponential and very much compatible with our long-term vision.

Auto-auto-compounding requires more complex code and much more testing, we want to deliver a fine product without rushing things.

We estimate this to be ready next week with an audit done at launch.

The fees (updated)

In our previous article, we mentioned that the fees for our vaults was going to be 5% (0.5% for withdrawals and 4.5% of profits). We are removing the withdrawal fee, thus only leaving a 5% earn fee to directly burn FISH.

It will cost you 0% to deposit into and 0% to withdraw from our vaults.

An important thing to note is that when we reach the maximum supply of 3 million FISH, it will be used to earn more rewards on the vaults. Instead of burning FISH with 5% of profits, FISH holders will earn 5% of profits. Giving an extra use case to our token.