gDAI Fever: New Leverage gDAI Vault — Whiskey
The wait is over, It’s time to present our new Vault, WHISKEY Vault — 3x Leverage gDAI Strategy.
We are delighted to announce our 3x Leverage gDAI Vault — Whiskey is officially launched on Vaultka.
Introducing the Whiskey Vault — a high-performance investment vehicle that offers a 3x leverage strategy on gDAI LP on the Gains Network, providing gDAI users with an excellent opportunity to amplify their returns through an undercollateralized loan. This innovative investment option not only allows users to maximize their earnings but also improves capital efficiency in perp DEX yield farming. With the Whiskey Vault, investors can take advantage of the benefits of the gDAI LP on the Gains Network and earn greater returns through a leveraged investment strategy.
Introduction of WHISKEY and w-WATER
WHISKEY — The gDAI leverage vault provides a 3x leverage reward based on gDAI’s underlying yield, and a reward split mechanism is implemented for distributing gDAI rewards to both Whiskey depositors and lending pool depositors.
w-WATER — The w-WATER Vault is a lower-risk product offered to investors with risk-averse profiles who are looking for higher returns than simply staking their idle capital. It provides a unique opportunity for those seeking investment opportunities in the perp DEX sector with controllable risk.
The Leverage Mechanism
Step 1: “Manager” simulates and determines the amount of to-be-borrowed DAI from w-WATER.
Step 2: “Manager” checks the availability of w-WATER and determines whether borrowing is proceeded or not.
Step 3: The borrowed DAI is combined with injected DAI in WHISKEY Vault to mint gDAI on Gains Network.
Step 4: ”Debt-to-Value (DTV) Monitor” and “Liquidation Monitor” continue to update and monitor the latest health of WHISKEY.
Step 5: Reward is split to w-WATER upon each DTV update according to the latest Utilization Rate of w-WATER.
The Novelty of Our New WHISKEY Vault Design
- Vaultka’s Reward Split Mechanism
Vaultka has introduced an innovative reward split mechanism. With this mechanism, w-WATER holders and Lending Vault depositors can earn a share of the yield generated by Whiskey’s gDAI, rather than receiving fixed interest income. This innovative approach offers w-WATER holders the potential to earn higher yields when the gDAI LP yield is trending upwards.
2. Zero interest rate
Unlike traditional vaults, users do not have to pay interest for leverage. Instead, they can simply share a portion of their profits with the lending pool as the cost of borrowing, and enjoy multiplied rewards from gDAI. Such an advanced approach makes the WHISKEY leverage vault an attractive option for yield farming enthusiasts, as it allows them to maximize their earnings without incurring interest costs.
The Withdrawal Mechanism
Please note that there will be a delay between the withdrawal request and the actual withdrawal of gDAI from the vault. This delay also applies to the Whiskey vault. The duration of the delay is determined by the collateral ratio of the gDAI vault.
Withdrawal requests can only be executed in the first 2 days (48 hours) of each epoch.
The Risk Management
Vaultka team has implemented a series of risk measurements for lending vault depositors (w-WATER) to ensure their principle is protected.
E.g.
- The Debt-To-Value Monitor
- A bot that monitors the Debt-To-Value ratio (the health factor) of the vault.
2. Liquidation Mechanism
- Liquidation occurs once the leverage vault reached the liquidation threshold
3. Safety Reserve
- We have reserve capital to provide compensation to our users.
Lastly, We are excited to invite you to try out our new WHISKEY and w-WATER vaults. The launch of the WHISKEY vault is an exciting addition to the Vaultka platform, offering a new level of leverage and reward for users. With the introduction of the w-WATER Vault and the innovative reward split mechanism, investors have unique opportunities to earn higher yields and manage risk in the perp DEX sector.
