V3 Vaults: The Frontier of DeFi Yield Maximizers
What are V3 Vaults?
V3 is the next version of our Vaults product which succeeds V2. This latest evolution of our Vault protocol brings unprecedented flexibility for passive income maximization that is only possible through Crystl Finance. Its a completely original product that is not available on competitor platforms!
The team behind Crystl Finance is aligning V3 Vaults to be the driving product that generates revenue for users, projects, as well as shareholders of the Crystl platform. What is it that makes V3 Vaults stand apart from the competition? Explore the sections below to find out!
How is V3 unique?
V3 is a completely original product. In other words, its not just another copy paste. Our code was written from scratch with innovation in mind and delivers unprecedented flexibility & versatility for building yield maximizers.
How is V3 efficient?
The V3 protocol is efficient in terms of gas optimization. It is cheaper to deploy as well as operate V3 vaults than the previous iteration.
What is a Maximizer?
A Maximizer Vault is a new kind of Vault that is only available on Crystl Finance. Maximizers accept LP tokens as a deposit to farm reward tokens on a third party platform, and then stake those tokens in a single staking strategy to earn more of tokens.
How do Maximizers differ from standard V2 Vaults?
Standard Vaults accept LP tokens as a deposit and reinvest rewards to accumulate more LP tokens. On the other hand, Maximizer Vaults reinvest rewards into a strategy that earns a single token.
How do Maximizers differ from farms?
In a farm you have to manually harvest & reinvest rewards between strategies. With a maximizer this is completely automatic.
How do Maximizers work?
See the following page for more examples & explanations.
How do Maximizers benefit users?
Users can maximize their passive income in the one asset that they prefer, completely hands free.
How do Maximizers benefit protocols?
DeFi projects often have reservations against the sell pressure caused by traditional Vaults. No more. Crystl Vaults keep value where it needs to be; With protocols & their users. Unlike traditional Vaults, maximizers do not result in negative sell pressure because rewards are not sold for LPs but reinvested into single staking Pools. In fact, maximizers are capable of bringing positive buy pressure by earning rewards on another platform, exchanging those for the native token & staking the native token in a single auto-compounding strategy.
What is a Boosted Vault?
Boosted Vaults automatically grow LP tokens just like regular Vaults, with one distinction. In addition to earning LP tokens, Boosted Vaults allow users to earn an extra reward in another token.
How do Boosted Vaults work?
Upon depositing in a Boosted Vault, users will receive a receipt token. This receipt token may be staked in the “Boost” feature to farm another reward simultaneously. For more information and examples, see the following page.
How do Boosted Vaults benefit users?
Not only will users be automatically earning LP tokens, but they can earn an additional reward by staking their receipt. In other words, higher APY than anywhere else!
How do Boosted Vaults benefit protocols?
Protocols may boost Vaults with their token for a number of reasons. For one, boosting a Vault provides marketing exposure and potentially attracts new investors. A protocol might boost a Vault for their own token to further encourage liquidity providers with a higher than normal APY, aligning incentives between the protocol’s goal to build deeper liquidity and the liquidity providers’ craving for passive income.
What is Zap?
Zap is a way to easily use Vaults without the need to manually create LP tokens.
How does Zap work?
Begin with one token you need for the LP and use the Zap feature to deposit in the Vault in one easy step. Its that simple.
What about converting LP back to a single token?
Absolutely! Use Zap Out to exit from the Vault and cash out to a single token in just one transaction.
How does Zap benefit users?
Zap is especially friendly for users new to DeFi, as it simplifies the process for creating LP tokens which can be complicated and overwhelming.
How does Zap benefit protocols?
With how easy it is to Zap into a Vault, protocols with a Vault on Crystl Finance will enjoy higher TVL and liquidity that results from this ease of use.
What is ERC-1155?
It is a token standard that allows Crystl Finance to provide users with receipt tokens that represent their deposit in a Vault.
How does this benefit users?
This standard is at the frontier of DeFi and is quickly seeing adoption by leading protocols like Alchemix, Curve, & Aave among others. One use-case has already been described above with our Boosted Vault feature. Receipts can be staked in Boosted Vaults to farm additional rewards from a boost Pool. Further benefits will be possible as Crystl Finance or other protocols integrate V3 Vault ERC-1155 tokens. For example, imagine if you were able to provide your receipt tokens in a lending protocol as collateral and take a leverage on your capital while it grows. The possibilities of the ERC-1155 standard are limitless!
How does this benefit protocols?
Projects can build on top of the Crystl Finance protocol for many synergetic benefits and an opportunity to tap into high interest, yield-generating assets. Think “Money Legos”! If you are interested in integrating our V3 Vault ERC-1155 tokens please reach out to the Crystl Team on Discord.
Exciting times are ahead for Crystl Finance! The release of V3 is coming this Q1 after the audit goes through a second pass. Once V3 is out, we will aim to bring a variety of new Vaults to Crystl on existing chains as well as expand to new chains! Most of the old Vaults will be updated to V3 as well.
This is arguably the biggest thing to happen to Crystl yet. Positioning us with many competitive advantages among yield maximizers. Crystl Finance is thrilled about bringing our new product to the market & giving users and protocols a completely new approach to maximized passive income! One of the biggest things about V3 is that the infrastructure will allow for even more use cases and innovations as time goes on! Opening a brand new world of possibilities. In the future, we are excited explore further ways to build on top of V3 to bring users the tools that they need to maximize their DeFi passive income.