Introducing New CAFFEINE BUYBACK VAULTS with Brand New Features for Our Brewers!
DeFi users are constantly seeking the best possible ways to yield maximum returns on their investment. Auto-compounding is one of those ways that has gained traction in recent times to generate good profits on the liquidity provided.
Let's give a brief overview on how this feature works.
An auto-compounding vault is an automated tool that continually harvests and reinvests your stake. As a user, you aren't required to do anything after your initial stake is deposited. Your rewards are periodically harvested and re-staked in the pool, generating compounded profits and yields on your behalf in the long run.
Our SmartVaults on https://smartvaults.cafeswap.finance do all of the hard work for you offering enormous returns on your investment. The displayed APYs on each of our farms take into consideration all compounding. Brewers can view their deposited amounts and the total amount invested by all other brewers in the pool.
In SmartVault Brewers receive svCafe tokens that represent their vault shares/stake in the vaults; these tokens can be used to farm the delectable MOCHA!
We have highlighted some really great stuff with auto-compounding; still, there are some unfavorable aspects of this process that should be taken into consideration:
- Vaults impose heavy selling pressure on the token and consequently decrease the price floor of the token.
- If the price floor drops, it will cause a resultant reduction in APY and TVL.
Considering these, we have no plans to leave our Brewers hanging. That's why we are introducing a new and unique mechanism. Because when life gives you lemons, trade them for coffee.
Hello, CafeSwap BuyBack Vaults!
CafeSwap BuyBack Vaults are a mechanism we have introduced to mitigate the selling pressure on BREW/pBREW and consequently increase the value of our tokens. This new set of yield optimization will maximize profits for your BREW/pBREW hence giving you a higher %APY. It functions by the indirect deposit of the tokens to our staking pool, thereby giving the pools more rewards to be distributed.
Let's take a moment to explain how this works using an example of CAKE single staking pool.
- First, users will deposit CAKE in CafeSwap BuyBack vaults
- The CAKE will then be deposited into the source farm that is PancakeSwap.
- The token obtained from the deposited CAKE will be auto-converted into BREW tokens.
- The BREW will be bought back from the market by selling the CAKE tokens, hence increasing the price floor of BREW.
- The Buyback BREW will then be sent to CafeSwap single staking pool, which will generate more BREW and result in higher APY.
Pretty cool, right?
Rather than auto compounding, users will maximize their BREW/pBREW, earning more than expected APY%. We want to provide maximum yields for our Brewers' investments; that is why we have introduced this brand new feature to obtain the highest APY% possible without minting a single extra BREW!
You might be wondering if this is just for CafeSwap. Well, it's not.
•We will be auto-compounding all maximum platforms possible, including the OG and the Degen pools.
•We will cover the most platforms to obtain the highest buyback rate for BREW/pBREW hence increasing the price floor with contrast buying pressure.
•We will also be simultaneously burning a certain % of the rewards obtained from the Cafeswap single staking without disturbing the APY%.
This imposed buying pressure, and constant burns will give a better price floor for BREW and pBREW. And that’s exactly what we want, hot Brew, pricey Brew!
Once you wake up and smell this coffee, it'll be hard to go back to sleep!
Very soon single staking vaults will go live on our platform, beginning with pBREW on the Polygon network. We will introduce LP vaults further along the way.
Sit back, Savor your Coffee and Earn the most BREW!