Factor Docs


Factor Yield Vaults are advanced DeFi tools that offer users a streamlined and efficient way to earn yields on their assets. These vaults automate the process of earning yields from various protocols on Arbitrum, catering to both single and multi-asset strategies.

Key Features

  1. 1.
    Auto-Compounding: The vaults' auto-compounding feature ensures that yields are continually compounded, thus amplifying the compounding effect on returns. This automation saves time and maximizes efficiency.
  2. 2.
    Diverse Strategies: Catering to a range of assets and protocols, the vaults offer a diverse set of strategies including but not limited to:
    • Lending
    • Liquidity Providing
    • Liquid Staked Derivatives
  3. 3.
    Integration with Major Protocols: The vaults seamlessly integrate with various leading DeFi protocols, enhancing the range of yield opportunities. Examples include:
    • Penpie: rETH Auto-Compounder: Integrates with the Penpie and Pendle, consistently generating high yields on rETH
    • GMX GLP Auto-Compounder: Integrates with the GMX protocol and maximizes yield on GLP
    • MUX MUXLP Auto-Compounder: Leverages the MUX protocol to optimize yields on staked MUXLP
    • Trader Joe Auto-Compounder: Targets Trader Joe's JOE tokens, tapping into its unique yield opportunities offered by their sJOE pool
    • Silo Strategies: Incorporates Silo's isolated lending pools for sUSDC-ARB and sUSDC-GMX
  4. 4.
    Zap Feature: A standout feature that allows users to "zap" (convert and deposit) any asset directly into the yield vaults. This one-click solution streamlines the process of entering yield-generating positions, making it more accessible and efficient.

How They Work

  1. 1.
    Depositing Assets: Users deposit digital assets into a specific yield vault. The type of assets accepted depends on the vault's strategy.
    • Zapping In: Users can use the Zap feature to convert their existing assets into the required format for a specific vault and deposit them in one seamless action.
  2. 2.
    Yield Generation: The vaults employ various strategies to generate yields. These strategies are executed automatically, leveraging opportunities across different DeFi protocols.
  3. 3.
    Compounding Returns: Earned yields are automatically compounded, enhancing the overall return for users over time.
  4. 4.
    Withdrawal: Users can withdraw their assets, along with the accrued yields, according to their needs. The vaults ensure that the withdrawal process is smooth and efficient.
Visit our Discover page to see the latest yield vaults.
Last modified 7d ago