Autocompounding Pools
Vector now allows you to autocompound your deposited assets!
When you deposit into LP autocompounding pools that utilize Platypus Finance or Trader Joe, the rewards you earn are automatically swapped for the same underlying deposited assets, and added back into the pool.
For other pools (LVTX, xPTP, zJOE, & Vector's LP pairs): PTP and JOE rewards are converted into xPTP and zJOE, and redeposited into xPTP & zJOE autocompounding pools. Any other reward tokens are automatically swapped into VTX and deposited into the autocompound LVTX pool, which autocompounds your LVTX rewards and auto-delegates your votes to the highest APR bribes. VTX rewards are also sent to the autocompound LVTX pool.
On the Vector site, you can select which type of pool you want your assets deposited in: Autocompound or Manual.
To switch back and forth, simply click the desired tab.
Manual pools are what always had previously and require you to claim and compound your rewards. Whereas autocompound pools allow you to sit back and relax!
Autocompounding pools take the rewards from each pool, trade them for the underlying asset, and add them back into the pool. That means the original deposit value grows over time, instead of accruing separate rewards.
Example: By depositing in the USDC pool on Platypus Finance, you earn PTP. When you deposit in the autocompounding USDC pool for Platypus on Vector, we're constantly taking your PTP rewards, trading them for more USDC, and adding them to your original deposit.
Our autocompounding pools utilize a community compound model to work. Each autocompounding pool requires a compound function to be called to trigger the compounding of rewards. Any user who wants to call this function is able to, and can receive some profits for doing so (read below)!
When this function is called, three things happen:
- 1.Rewards for the pool are traded for the underlying asset
- 2.A small amount of the rewards are paid to the compounder in AVAX
- 3.The rewards are deposited back into the pool along with the principal
The compound function takes some gas to call, and any user can call it. Part of the fee taken on the rewards sitting in compounding are given to the caller, to make their call worthwhile. These are paid out in AVAX.
If you're currently deposited in a manual pool on Vector, you can easily move to the autocompounded version of the pool. Open the pool you are in, then use dialogue to move over. After you complete the transaction you can refresh the page to see your deposited pool changed.
Our Compound page shows all of our autocompounding pools, along with Compound buttons to trigger this function. Someone interested in compounding these pools can do so from the page. By default, only profitable pools are selected (meaning the rewards for compounding will outweigh the gas fee incurred). If you see a profitable pool on the page you can compound it and earn some AVAX! Learn more about the Compound Page here.
There are a number of pools on Vector that include VTX rewards. We have a manual and autocompounded version of each. The autocompounded version of these core pools works a little different than our other autocompounded pools. We've broken those differences down in their own page: Vector's Core LP Pools.
Last modified 8mo ago