Vaulty launches the first decentralized platform designed to bring automatic asset allocation across DeFi instruments. Vaulty is one of its kind non-fungible token vault with every vault having its own smart contract with predetermined logic. Vaults allow users to minimize the network fees and time spent researching the best instruments.
The Easy Way to Earn Higher DeFi Interest Rates
There’s a large misconception about the inner workings of DeFi and whether the user is getting the best possible return. Many DeFi platforms offer interest returns that crush rates found at the traditional banks. But users could be earning much more interest by properly understanding and utilizing compounding tools.
Understanding Interest Returns in DeFi
DeFi earns interest in several ways. One main way to earn interest is through providing liquidity. This is where users delegate tokens to decentralized exchanges (DEX’s) like PancakeSwap or Uniswap. In return for providing that liquidity, liquidity providers (LPs) earn a reward from the small commission fee charged to the DEX’s users. It should be noted that LPs run the risk of impermanent loss.
The second common way to earn interest on assets in DeFi is by loaning out tokens on platforms like Venus. These platforms allow users to take out collateralized loans without the need for a middle man. By staking funds to these platforms, users earn rewards for providing tokens to the loaning pools.
Figuring out the correct ratios and methods for staking tokens to earn the maximum returns can be quite the challenge. This is where yield optimizer platforms like Vaulty come in. Vaulty appropriately stakes the tokens for the maximum return, doing all the work for the user. This makes it much easier to earn interest on tokens while gaining peace of mind.
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The Importance of APR vs APY
One more confusing aspect of interest rates is the difference between APR and APY. Many people believe that they are the same or the difference is insignificant. The reality is that these two numbers are very different and understanding the difference could end up earning significantly more tokens.
APR refers to a linear interest growth. The staked tokens earn rewards and the rewards can be collected once the user is ready. In contrast, APY refers to a compounding interest rate. When a user earns rewards, those rewards are added to the stake the user is earning rewards on. Hence, the user is earning rewards on their rewards. This is the model that traditional banks use: the interest earned is added to the balance, which further earns more interests.
Many people accept their APR interest rate without understanding they’re missing out on a higher interest rate. Vaulty is fixing the issue by doing all the hard work.
The Magic of Vaulty’s Auto-Compounding
One of Vaulty’s major features is auto-compounding. Instead of manually creating a transaction to collect earnings and restake them, Vaulty does it automatically. This has three main advantages.
First, no human intervention is needed anymore. No need to remember to compound. Second, Vaulty auto-compounds frequently (compound period depends on the pool and starts from 10 minutes), all day, every day. This is obviously not realistic to be done on one’s own. But with Vaulty, users can earn those potential earnings that would otherwise be practically impossible to achieve.
Lastly, Vaulty’s auto-compounding also means there are no transaction fees every time tokens are restaked. While the Binance Smart Chain has low transaction fees, it is not something to be overlooked. Transaction fees can add up to a substantial amount (especially to be restaking throughout the entire day). Not to mention other chains, like Ethereum, have tremendous transaction fees.
The Advantages of Vaulty
In addition to auto-compounding earnings, Vaulty also has other impressive and innovative features. Vaulty is the only yield aggregator to offer NFT rewards. Vaulty users also earn additional $VLTY tokens for providing liquidity. $VLTY can be used to earn the NFT rewards or be staked to earn even more $VLTY.
Vaulty makes it simple to earn the best possible interest rate on the holdings by doing all the hard work. Vaulty automatically allocates the assets and does an auto-compound. Users simply stake with Vaulty and sit back to reap the rewards. Vaulty users will be earning more and enjoying better features relative to the rest of the DeFi space.
As the DeFi ecosystem matures, better tools are continuously being developed to improve the functionality and user experience. Vaulty is the next iteration in this path towards making decentralized finance easy and practical for everyone.
Vaulty has many industry leading VC’s as their backers & partner like, x21, Momentum6, Moonwhale, Onemax Capital, Magnus Capital, Techemy Capital, Blocksync Ventures, Block Beats, Vendetta Capital, Combine, Tsukiyomi Group, Raptor capital, Cinchblock, Black Mamba Ventures. Vaulty has gained trust of many well known Investors & VC’s and with this Vaulty is moving towards its Public Sale.
Vaulty’s Public Sale
Vaulty has already completed two successful IDOs which were held on BSC Station & Trustpad. Vaulty is running a whitelist till 16th of August for the public sale that will be held on Vaulty’s platform.
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