In this guide we will explain the features on APY.vision for tracking DeFi vaults.
What is a DeFi Vault?
Yield farming for an individual with limited funds can be cost prohibitive due to high transaction costs for claiming rewards. To solve this problem, “yield aggregators” are sets of contracts that pool these staked funds together and allow users to optimise their yield farming by allowing “vaults” to automatically harvest their farming rewards and reinvest them in the liquidity pools, resulting in compounded gains. These auto-compounding vaults can make it so users with smaller portfolios can take advantage of yield farms by depositing into “vaults”, which is the term for the auto-compounding contracts. These vaults allow depositors to not have to worry about gas fees which maximise the returns they can earn on various yield farms.
Recently we have begun to see vault projects on newer chains like Polygon and Fantom with low cost transactions that are able to compound much more frequently than their counterparts on Ethereum mainnet. This can result in higher returns and removes the labour intensive task of manually compounding your gains multiple times per day.
Vaults can range in complexity and risk, with some using single asset deposits instead of liquidity pool tokens. Some vaults can even utilise more complex strategies that involve multiple protocols and transaction types. It is always wise to research the exact process a vault is using before depositing any funds into one.
If you would like to learn more about vaults, we have created an “Ultimate guide to DeFi vaults” to explain.
List of DeFi Vaults supported by APY.vision
You can check which individual vaults are supported by APY.vision here. You are able to filter through the vaults by selecting which chain on the top left and then filter again by protocol on the right.
There are two main types of vaults, those that use LP tokens and are at risk of impermanent loss, and those that use single asset deposits and are not at risk of impermanent loss.
NOTE: Some vaults need to be manually entered to be tracked, you will find the link to add them in your dashboard as pictured below.
Once you have opened the UI for adding a vault, you will need to select the vault provider and then provide the transaction hash for the event when the wallet made a deposit into the vault. This transaction hash can be found using Etherscan.
Currently supported vault protocols: Beefy, Adamant, Reaper.farm, Harvest, Eleven, Yearn, Badger, Polycat, Tesseract, Pickle, Kogefarm, Quickswap
Tracking your DeFi Vault position on APY.vision
First time APY.vision users – enter your wallet address in the box highlighted above or connect your wallet with the purple button. On mobile/tablets click on the search icon and copy their address into the popup
Once your vault position is deposited, you can start tracking the performance of the vault on the APY.vision “Dashboard”. APY.vision will separate the deposit (DAI) activity from the vault activity (the compounding rewards) as shown above. Click on the “View details” button to see more information about your vault position.
Current market value section
The three tabs on the left will each bring you to a different section of the “More details” page. In this section “Current market value” you will be presented with an overview of your position. It will list details like the initial capital provided, gains from being in the liquidity pool, gains from being in the vault, adding those two together to produce a figure for total gains, and the current market value of your position.
Liquidity pool gains section
The liquidity pool gains section shares the standard metrics we track for any liquidity pool.
Four main metrics (highlighted in red)
Liquidity pool gains – The gains or losses from being in the pool, without factoring in changes in the market prices of the assets. This figure is calculated by combining the trading fees from the pool with the impermanent loss.
Net market gains – SImilar to the previous metric “liquidity pool gains” but including the shift in market prices of the assets.
Impermanent Loss – Shows the current amount on impermanent loss on an annualised basisGas Fees and tx costs – This will estimate your gas fees for entering and exiting the position
Vault gains section
Above is the “Vault gains” section where you can see a breakdown of your gains in the vault from a few different perspectives. It will give more details on what specifically is happening after depositing into a vault. The table rows break out some of the variables affecting token balances. It will list initial tokens deposited in the vault, changes based on trade fees and impermanent loss, additional tokens from farming rewards that have been converted to LP tokens by the vault, the current token balance in the vault, and the difference between initial tokens in the vault and current tokens in the vault.
Three main metrics (highlighted in red)
Total value in vault – The current market value of this vault position
Net market gains from vault – “The total value in vault” less the USD value of deposits at the time of deposit. This includes “Gains from vault only”, LP trades, token price changes, and any impermanent losses
Gains from vault only – The current market value of your “LP tokens gained”. LP tokens are gained when the vault claims rewards and sells them for more LP tokens.
The “Transactions” section highlights the historical transactions that are used in all of the calculations. It will also show the gas fees paid to enter the vault as well as the date and cost of the transaction.
Providing liquidity to DeFi vaults is a great way to earn some income on tokens sitting in your wallet. Be aware of the types of vaults you are using, some are single asset deposits and therefore not subject to impermanent loss while others use LP tokens instead and auto compound rewards for higher APY’s. To read more about the risks, we highly recommend reading this post. We suggest using APY.Vision to keep a close eye on your positions to be aware when market conditions change and require some action.
APY.Vision does not give investment advice and always insists that you do your own research. Read our full Legal Disclaimer.
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