Vaultka’s new $VLP Leverage has officially gone live after a successful launch on Sake Vault. The team at Vaultka has been actively listening to the community’s feedback and has implemented significant upgrades to the Sake vault. These new features allow users to enhance their profits and customize their positions according to their risk preferences. Now, let’s explore the unique aspects of the New $VLP Leverage Vault!
1. Novel Hybrid Lending APR
In the original lending vault, the APR for s-WATER depositors was determined by the performance of strategic vaults, resulting in a relatively average APR for Water due to the inactive market conditions in Perp DEXes. Additionally, reward split from leveraged positions remains unrealized until their position is closed. WATER deposits are unable to realize rewards and accumulate value in the WATER vault, thus leading to an unfair situation for WATER lenders.
The new lending mechanism introduces a Hybrid APR mechanism for s-WATER depositors to ensure the appeal for lenders. The protocol functions as a middleman to simplify the distribution of profits from leveraged vaults to lenders. It ensures that lenders receive a guaranteed base indicative APR (calculated from the median of the LP APR minus 1 standard deviation, which is currently about 8%) on their deposits. Additionally, lenders receive a bonus APR based on the historical actual performance of the underlying LP. This setup allows depositors to earn a more consistent realized APR while also benefiting from potential increases in performance from LPs. For more details on the mechanism of the novel hybrid s-WATER APR, review our updated gitbook here.
With the protective nature of Water Vaults, lenders can now enjoy a highly enticing yield without any downside risk to their position, thanks to the vault’s design. This APR surpasses the rates other lending protocols offer, making the lending vault an appealing product.
2. Flexible Leverage
In the previous Sake vault, leveraged users were limited to a fixed 3x leverage, limiting them from customizing their risk exposure and maximizing their profits. However, in the latest version, users can employ dynamic leverage (up to 5x) based on the amount they deposit in the Sake vault.
3. Support of Multiple Stablecoins Collateral
The new design of the $VLP leverage vault now provides support for four distinct stablecoins for deposits. Users can choose USDT, USDC.e, or DAI for their transactions. When depositing, the vault will seamlessly convert the amount into USDC.e, which is currently the only currency supported by VLP. This conversion process occurs through Kyberswap, guaranteeing users the best price.
4. Enabling Partial Withdrawal
In the previous Sake Vault, users were limited to withdrawing their entire position without the option to take partial profits. This lack of flexibility resulted in suboptimal risk management for users. However, with the new $VLP leveraged vault, users now have the ability to make partial withdrawals on their positions. With the introduction of partial closures, users can now effectively manage their risk exposure and adjust their positions according to their individual requirements.
5. Lower Withdrawal Fee
To enhance user flexibility, the new $VLP leveraged vault has reduced its withdrawal fee. The fee has been adjusted from 0.5% to 0.2%, enabling users to freely withdraw their positions whenever they want in order to strategize their leveraged position in VLP.
Vaultka’s dedication to listening to the community’s feedback has resulted in significant upgrades to the Sake vault, offering users enhanced profitability and customization options. We aim to persistently develop as the central hub for perpetual exchanges on Arbitrum, consistently providing top-quality products to support the entire ecosystem. 💙
