Strategies

How do standard LP Vaults work ?

Users generate more LP tokens as a result and enjoy the power of compounding.

How do Single Asset Vaults work ?

Users generate more supplied asset, and enjoy the power of compounding.

Who is in control of the strategies?

Each vault and strategy link is hardcoded, and the code has been built to be immutable, so once they are released, they become unstoppable. No one can modify the vaults and strategies. To release a new strategy on any asset, a new vault and strategy smart contract must be built.

What is APR and APY?

APR reflects the simple interest rate over a year’s time, while APY describes the rate with the effect of compounding.

Is APY/365 the right way to determine daily gains?

No, the effect of compounded interest is exponential, not linear. A daily compounded interest of 1% would yield 3678.34% a year.

How does Dopepool Finance optimize APY?

The protocol automates the whole compounding process, making it close to optimal as possible. The compounding frequency depends on different variables in the system, like TVL, APR and strategy fees.