πŸ’°
Earn
Available at: https://fi.woo.org/earn

What is WOOFi Earn?

Putting your assets to work in DeFi and continuously managing your positions is very time-consuming and can often be stressful. In order to optimize earnings in DeFi, you would have to
  • research a huge variety of DeFi protocols for high yields
  • due diligence the project and assess the security of the protocols
  • actively manage the position to boost yields, often time involves investing and re-investing manually to compound the yields
WOOFi Earn strives to provide a hassle-free experience in DeFi by bringing "set-and-forget" earning strategies, where users can simply deposit into a vault and let the automated strategy do the rest. WOOFi selects secure and battle-tested yet profitable DeFi platforms, then deploys vaults to optimize the yields by algorithmically auto-compounding in the most efficient way. Importantly for users, the priority is security over profitability, an important distinction in the wild west of yield farming.
The assets deposited by users are in the custody of the smart contracts, not in the control of WOOFi. Users can always withdraw from a vault at any moment in time. When browsing the vaults in WOOFi Earn, you can find all the necessary information at a glance:
  • Easily browsing vaults based on the type of assets you want to deposit by clicking the tabs, the "My Deposits" tab provides a summary of your portfolio in all WOOFi Earn vaults
  • The required token to deposit in the vault, either a single asset or a liquidity pool (LP) token
  • TVL - the total value locked in the vault
  • The underlying protocols/applications that the vault deploys the capital to and earn yields from
  • Earned - your earnings in the vault, it's estimated in a real time manner based on the frequency of harvest
  • APY (Annual Percentage Yield) which takes the frequent compounding into consideration
  • My Deposits - how many tokens you have deposited in the vault and its current dollar value
  • Wallet Balance - how many required token you have in the connected wallet
  • Deposit tab - where users deposit the required token into the vault
  • Withdraw tab - where users withdraw the token deposited plus the yield earned
  • Info tab - description of the strategy, smart contract address, and fee structure of the vault

How does WOOFi Earn optimize APY?

WOOFi automates the process of investing, selling rewards for more deposited tokens and reinvesting the tokens at a high frequency, which helps to achieve higher compounded interest. And it helps users save thousands of transactions with their associated gas cost and precious personal time.
WOOFi Earn automates the whole compounding process, optimizing it as much as possible. The compounding frequency depends on different variables in the system, like TVL, APR, and harvesting cost. The current harvest frequencies are as follows:
Blockchain
TVL <= 100K
TVL > 100K
BNB Chain
12 hours
24 hours
Avalanche
48 hours
24 hours
Fantom
12 hours
24 hours
The auto-compounding strategies vary based on the type of vaults:
  • Lending & borrowing platform - the vault lends the tokens and collects lending interests, claims and sells rewards for more tokens, and depending on the rates, may choose to borrow more tokens against the collateral and lend it again to optimize the yield
  • Single asset farming - the vault deposits the tokens in the underlying platform, claims and sells rewards for more tokens
  • LP farming - the vault deposits the LP token in the underlying platform, claims and sells rewards for the pair of assets in the LP token at equal weight, and then adds liquidity again to earn more LP tokens

How are the strategies selected and implemented?

The WOOFi team constantly looks for strategies that can be deployed as a vault. The key aspects in evaluating the strategies are as follows:
  • Security - how long the external smart contracts have been operating with no exploits; quality of the code; third party audits from reputable firms
  • Profitability - APR of the underlying platform; the value add from the automated strategy
  • Efficiency - number of token holders of the required assets; the complexity of the strategy development; frequency and gas fee needed for the automation to have optimal yields
We welcome everyone in the community to suggest and discuss any new strategy in the #defi-yield-finder channel in the Discord and work together with the team to evaluate it based on the abovementioned aspects and deploy it if appropriate. Strategies who identify and implement new vaults will be incentivized via the performance fee.

What are weTokens?

A weToken is an interest-bearing, tokenized proof of deposit that users receive at the moment they deposit in a WOOFi Earn vault. A weToken is unique per vault, e.g. you get weBNB tokens when depositing BNB into the BNB Alpaca strategy vault. One can view weTokens as the receipt of vault deposit.
As WOOFi Earn vaults automatically earn more of the deposited asset in the form of compound interest, the value of users' weToken increases in the deposited asset. Since the balance of weToken in your wallet remains the same, the weToken do not 1:1 match with the token amount initially deposited.
Please do not sell or exchange your weTokens, otherwise you might lose ownership of the deposited assets in the vault.

What is the fee structure?

WOOFi Earn vaults aim to always give the most back to the users with minimum performance fees and no deposit or withdrawal fees. More importantly, most of the performance fee is given back to the WOO stakers on WOOFi.
At launch, WOOFi Earn vaults by default have a 3% performance fee (some vaults may even be lower) on harvest rewards. This 3% fee is then split up: 2.5% is used to buy back WOO token and distributed back to WOOFi stakers, 0.5% is to cover the cost of harvesting and reinvesting. These fees are already built into the APY of each vault and daily rate. You do not need to calculate these yourself.
Yield Optimizers
Performance Fee
Withdraw Fee
Management Fee
WOOFi
1 ~ 3%
0%
(with exceptions of complex strategies)
0%
Yearn
20%
0%
2%
Beefy
4.5%
0 ~ 0.1%
0%
Yield Yak
5 ~ 10%
0%
0%
Autofarm
3.5%
0%
0%
In the future, strategies that identify and implement new strategy vaults may receive a small portion of the performance fee to incentivize more high-quality strategies on WOOFi.

What are the risks?

WOOFi Earn smart contracts are audited and we carefully evaluate the security risks of the external smart contracts WOOFi interacts with. However, this does not mean that a vault is entirely risk-free. Below are some of the general vault risks:
  • Assets deposited into the vault have no risk of decreasing in quantity but can decrease in monetary value.
  • For the LP vaults, while you accumulate more LP tokens your position is still subject to Impermanent Loss.
  • As with any smart contract, the ultimate risk is that a user's funds can end up stolen or unable to be withdrawn. The team always takes security as the first priority when assessing the external smart contracts that WOOFi interacts with.
  • In case of any smart contract exploit, an emergency process is in place to pull out users' funds from the external smart contract back to WOOFi Earn Vaults to avoid/minimize the loss. Users will always be able to withdraw the funds proportionate to their share of the vault.