Automated Vault’s Repurchasing Rollout Plan
Dear alpacas,
Over the past few months, we have been piloting and refining our repurchasing operations on Automated Vaults. The results have been good. Vaults with repurchasing outperformed the ones without repurchasing with flying colors. For instance, the Market Neutral n3x-BNBBUSD-PCS1’s return is now back in positive territory again since May. It outperformed the n3x-BNBBUSD-PCS2 by ~40 basis points (0.40%) in two months which is equivalent to 2.51% on an annualized basis.
The BNB Saving Vault also showed strong performance with 7.26% APR return over the last month! If you are looking to grow your BNB holdings, this is a great way to do so with 2x higher returns than simply lending which currently yields ~3.1% APR 🚀.
To date, we have executed ~$1.5Mn in repurchasing, with an estimated savings of ~$27k in fees and price impact. With these successful results, we are happy to announce that we are rolling out the repurchasing to more vaults. Please read below for the details of the rollout.
📋Rollout Plan
Currently, there are three vaults with live repurchasing. You can invest in them now and enjoy high & consistent yields.
We are rolling out repurchasing for four additional vaults in November:
- 3rd November: Market-Neutral (8x)BNB-USDT PCS2
- 15th November: Market-Neutral (8x)BNB-USDT PCS1
- 22nd November: BTCB Savings (3x)BUSD-BTCB PCS1
- 30th November: Market-Neutral (3x)BNB-USDT PCS1
Once the repurchasing is live on these vaults, you can expect these AVs to produce higher and more consistent returns than they are presently.
For a complete schedule, please refer to the spreadsheet here.
👋 Sunsetting Selected Underperforming Vaults
You may have noticed that not all the current AVs are on the list above, and that’s for a good reason. For repurchasing to work effectively, there needs to be 1) high enough base yield from the DEX; and 2) high enough TVL in the vaults.
We are consolidating some like-kind vaults with low TVLs. For these vaults, we will facilitate switching your investment to another vault by putting up a UI for you to easily migrate with one click. Thanks to the recently upgraded AV codes, you will not incur any swap fees when switching into a new vault! For example, the Market-Neutral (3x)BNB-USDT PCS2 and Market-Neutral (3x)BNB-USDT PCS3 will be deprecated and we will only maintain repurchasing on the Market-Neutral (3x)BNB-USDT PCS1. The migrate UI will be live around mid-November. At that time, we will also remove the 0.2% withdrawal fee from the vaults that we are sunsetting.
Some of the vaults, however, are no longer suitable for AVs based on the current market conditions and yields. For these, we are also going to sunset them.
For a complete list of all the vaults and what will happen to them, please check here.
As always, we thank you in our community for your support of the team. If you have any questions, please get in touch with us through our socials where our team members can help you.
