Building the First Auto-Compound Vault on Function X
We are proud to announce that we have launched the first auto-compound vault on the Function X blockchain, the f(x)Core Delegation Vault. This launch is in line with the Baklava Space mission to create a DeFi vault marketplace, including auto-compound and strategy vaults. Baklava Space makes it easy for users who want to ride on strategies deployed by the vaults without needing to actively monitor and operationalize their positions.
In Q1 2022, Baklava Space DeFi began as an auto-compounding vault for liquidity providers’ tokens on Avalanche. One year later, Baklava Space is moving into vaults with many complex and real-yield strategies. Baklava Space’s product suite includes single-token staking, auto-compounding, leverage vaults, and delta-neutral vaults. With more than USD 10 million in total value locked in the platform, we recently established ourselves on the Function X network in 2023.
What is FX token and f(x)Core Delegation Vault?
The FX coin is the native token in the Function X ecosystem. It is currently utilized as a governance token as well as a gas token on f(x)Core Classic and f(x)Core. On Function X, the FX holder can choose to be a delegator in order to participate in f(x)Core governance and earn a block creation reward. Currently, the block creation reward can be claimed by users by withdrawing it from the validator nodes.
Baklava Space is trying to provide a simple way for FX delegators to auto-compound their yield without performing the withdrawal and redelegation manually. Baklava Space’s vault accepts FX tokens as deposits, and it helps users auto-delegate FX to validators on f(x)Core and auto-compounds to generate additional yield for depositors. On top of the auto-compounded FX rewards, the stakers can also get BAVA tokens as the additional rewards.
How to delegate to the f(x)Core Delegation Vault?
Users need to visit https://baklava.space/vaults/fxdelegate/ to deposit their FX. There are two ways to deposit to the f(x)Core Delegation Vault:
- Delegate FX to the vault
Users only need to deposit FX and the vault will distribute the delegation to all the validators automatically. - Transfer delegated FX
Users transfer their presently delegated FX to Baklava’s vault. With this method, Baklava Space will own the delegated FX on the same validator node and automate the auto-compound process.
How does the user check the current delegation status in the vault?
Once the users deposit FX token to f(x)Core Delegation vault, they will receive stFX (Staked FX) as the receipt tokens. This token shows your staked position on the vault, and users can withdraw their delegation by exchanging back the stFX to FX token.
The stFX token is the cumulative value of the underlying FX plus all the cumulative yields that are constantly reinvested into the vault. On day one of vault launch, the value of 1 stFX = 1 FX. As the cumulative yields of FX are reinvested and compounded into the vault, the value of stFX is expected to be higher than FX. To extract the yield, the vault user has to return the stFX tokens into the vault and withdraw the earnings.
The fees on Baklava Space
There are 3 types of fees on Baklava Space’s f(x)Core Delegation Vault:
- Withdrawal fee: 0.5% of the withdrawal amount.
100% of the withdrawal fee will be redelegated back to the vault. - Platform fee: 5% of the yield.
- Compounder fee: 1% of the yield.
100% of the compounder fee will be rewarded to the person who initiates the compound transaction.
Baklava Space will also support the LP tokens from FXSwap, and we expect to launch it in Q4 2023.
That’s it. Thank you for all your support for Baklava Space. We will share more information on Twitter and in our thread on the Starscan forum. Do not forget to follow it for the latest updates. Enjoy your Baklava dessert, and see you there!
