BSCDEFI becomes a Vault with 42% APY
Based on yield from staking CAKE XVS MDX ALPACA BAKE AUTO
BSCDEFI is the leading decentralized index composed of BSC Defi blue chips. This product is built to make investments into Defi protocols operating on BSC as easy as possible.
Today we are proud to announce a new technical feature BSCDEFI that is ready for deployment and will take effect soon.
Assets from BSCDEFI basket will be automatically staked and generate yield that will be compounded automatically.
It means that BSCDEFI will harvest and automatically compound yield from CAKE, MDX, XVS, and other tokens from the basket. It acts as several vaults in one, providing exposure to the ecosystem as a whole.
The user, simply holding BSCDEFI in the wallet will get rewards generated by staked assets.
Staking opportunities for BSCDEFI
Examples of how tokens from BSCDEFI could be staked and APY is presented below:
- CAKE [42.56%]: an Auto Cake option with 72.91% APY
- XVS [15.96%]: 2.76% lending APY
- MDX [7.45%]: Autofarm pool with 73.11% APY
- ALPACA [5.32%]: Lending at Alpaca Lend 75% APY
- BAKE [4.26%]: Staking in Egg Pool 15% APY
- AUTO [4.26%]: AUTO staking 14.4% APY
Total yield on the basket: = 42.15%
PowerPool protocol has essential infrastructure for automating yield harvesting and compounding — Power Agent network. It is an incentivized network of CVP stakers signing transactions and performing contract calls.
Power Agent can automate any on-chain activity that PowerPool needs for active investment management.
The staking itself is performed using Wrapper + Router technology, invented by PowerPool. The main idea behind Wrapper + Router is holding piTokens (wrapped Defi tokens) inside the index basket while the original asset is staked and generates yield. This yield is automatically harvested and added to the basket by Power Agent.
Such an architecture is much better than adding interest-bearing assets into the basket itself. The reason is simple — what if this staking opportunity will be no longer available/new staking opportunity with much higher APY appeared on the market? If a yield-bearing asset (not a generalized wrapped one!) will be is inside the basket, it will be quite complex to replace it with another one. In contrast, the PowerPool Wrapper+Router approach allows changing staking options (for example Syrup Pools for CAKE) on-the-fly. It wouldn’t affect BSCDEFI operation.
An example of Wrapper+Router implementation is Sushi staking in ASSY index successfully operating in mainnet for more than 6 months.
BSCDEFI staking will be launched sequentially one-by-one token, starting from CAKE staking. Despite the fact that all tech is audited, we see it reasonable to activate staking strategies separately in order to avoid any issues with it. The first implementation will be CAKE at the end of the week.
We will notify the community regarding each staking launch with tweets containing all necessary information.