What is a Vault?
A Vault is a sophisticated tool designed to manage and optimize your DeFi strategies.
X Vaults
An X Vault is an ERC-4626 vault that leverages the power of pooled resources to actively manage token positions within the Pulse Chain ecosystem. As Yearn famously put it, "Deposit tokens into the vault, wait, and withdraw more than you put in." It’s a straightforward concept: the vault’s purpose is to grow the amount of tokens held within by employing carefully crafted strategies.
When you deposit tokens into the vault, a predefined strategy puts them to work, aiming for optimal returns. These strategies can vary widely, though the most common types are single-sided lending vaults that enhance your lending platform position. Occasionally, strategies include liquidity provision, though they’re less popular due to the risk of impermanent loss, which makes it challenging to increase a single token's value. Despite this, LP vaults proved valuable when liquidity farming was at its peak. X Vaults play a vital role by simplifying complex operations, distributing gas costs among users, and maximizing shared capital on a single strategy—especially crucial when aligning with the peg.
Genesis Vaults - LP Auto-Compounding XUSD Vaults
Strategy: The Genesis Vaults are LP-based auto-compounding vaults that strategically maximize XUSD token positions. Here, LP tokens are deposited into the XUSD Genesis farms, and rewards are automatically harvested. The vault then sells half of the earned XUSD, uses the remaining XUSD to create additional LP, and reinvests back into the farm. This cycle of compounding interest—often called the “eighth wonder of the world”—is managed for you.
“Selling XUSD to reach the peg?” Yes! To achieve this, we need increased liquidity. As this vault builds liquidity, it positions us for future gains. Eventually, we will transition to using rewards from OneSwap, which will exert consistent buy pressure and help push us toward the peg.
These Vaults simplify advanced strategies and make DeFi more accessible, turning complex processes into straightforward, capital-efficient growth opportunities.