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.
- 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.Diverse Strategies: Catering to a range of assets and protocols, the vaults offer a diverse set of strategies including but not limited to:
- Liquidity Providing
- Liquid Staked Derivatives
- 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.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.
- 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.Yield Generation: The vaults employ various strategies to generate yields. These strategies are executed automatically, leveraging opportunities across different DeFi protocols.
- 3.Compounding Returns: Earned yields are automatically compounded, enhancing the overall return for users over time.
- 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.