Editorial notes (vol. 20) – Vault enjoyooor’s heaven
DeFi ecosystem is rapidly evolving and providing the participants with many interesting approaches for generating yield. Instead of risking your funds by trading and speculating on asset prices to grow your portfolio, you can also utilize various DeFi products that offer specific strategies to enhance the value of your assets.
The simplest way to passively grow your portfolio is by depositing funds into different vaults. Vaults are pools of capital that deploy the deposited funds across the DeFi ecosystem through predetermined strategies and share the rewards among the depositors while lowering the collective transaction fees.
In this week’s feature, we’ll look at some of the projects offering the most interesting products you can start utilizing right now without doing a lot of work.
Vault Enjoyooor’s Heaven
The opportunities for yield generation in DeFi are immense. The most known are of course staking and lending, however, there are a ton of projects building easy-to-use products that incorporate different strategies and deploy the deposited assets through them. They cover everything from automated options strategies to yield farming and below are some of the projects that we love to use.
Check them out!
Maximize Convex APYs and earn yield in the best DeFi tokens on Concentrator.
Concentrator is a yield enhancer that boosts yields on Convex vaults. Users deposit Curve LP tokens, which are automatically staked in Convex vaults. Rewards are periodically harvested, swapped to cvxCRV, and deposited in the Concentrator vault. The Concentrator vault stakes deposited cvxCRV on Convex, then auto-compounds the resulting rewards back to more cvxCRV.
At the moment, Concentrator is running the IFO (initial farm offering) whereby users who deposit their assets in its vaults receive CTR – Concentrator’s governance token instead of the regular rewards. Make sure to check it out and see the stellar yield-generating options you can utilize by either zapping in or depositing the correct Curve pool tokens.
Access automated options strategies with Ribbon to earn sustainable yield.
Ribbon uses financial engineering to create structured products that deliver sustainable yield. Ribbon's first product focuses on yield through automated options strategies. The protocol also allows developers to create arbitrary structured products by combining various DeFi derivatives. Ribbon Finance takes 10% performance fees and 2% management fees. 50% of this revenue is distributed to RBN stakers.
Recently, Ribbon launched their new product “Earn” which allows you to generate yield through their vault’s principal protected strategy.
Yearn uses automated strategies to help maximize yield for users.
Yearn is a DeFi vault and yield aggregator that helps users generate the highest yield farming profits by providing easy access to complex strategies. When you deposit assets into Yearn products, you gain access to the best automated strategies for swapping funds between DeFi protocols. Yearn further optimizes token lending by algorithmically finding the most profitable lending services and the highest yields, making farming accessible to the masses and giving new users access to advanced strategies. Essentially, Yearn vaults (which Omni has natively integrated) can best be described as actively managed mutual funds where the investment strategies are performed by Yearn's self-executing code.
Find the best stablecoin yield strategies according to your risk tolerance on Gro.
Gro Protocol is a yield optimizer for stablecoins. Its two flagship products Vault and PWRD Savings allow you to generate yield in two ways depending on your risk appetite. The generated yield gets shared and distributed with more yield going to Vault; in return, any downside risk is absorbed by Vault first. This allows you to boost your stablecoin returns if you are willing to take potential downside or earn a lower yield in return for higher security.
Grow your crypto with customizable yield enabled by Vovo Finance.
Vovo Finance is a structured products protocol that offers a variety of products with varying risk profiles. It offers:
Principal Protected Products: Stand a chance to earn large profits without the risk of losing the principal. It is built by integrating Curve with GMX perpetual swap exchanges on Arbitrum. Users simply deposit USDC into the vault, which in turn deposits the tokens into Curve farming pools. The generated returns are then used to open leveraged positions on GMX to boost the yield.
Yield Enhancement Products: Earn high returns by taking the risk of your choice. It works similarly to Principal Protected Products, but instead of depositing USDC users need to deposit GLP which are then staked to generate rewards.
Enjoy automated delta-neutral strategies with single asset deposits on Robo-Vault.
DeFi yield-generating strategies can be risky, but Robo-Vault makes it safer by using advanced delta-neutral strategies together with the best off-chain automation to earn high yields while limiting your exposure to market movements. The Vaults are built using Yearn’s V2 architecture and only change the underlying strategies and fee structure with deployed strategies on Fantom and Avalanche.
Whether you have stablecoin LP positions or other assets such as WBTC, WETH, and other prominent stablecoins, you’ll be able to find solid strategies to deploy your capital and earn relatively high returns.
Access sustainable, hedged yields on Arbitrum with UMAMI.
Umami is building an ecosystem of strategy vaults for the future of finance. Umami’s expanding menu of strategy vaults offers sustainable, risk-hedged passive income sourced from across DeFi. In the center of their ecosystem is the native UMAMI token, which can be staked for a growing stream of passive income generated by the yield from Umami's Protocol Owned Liquidity and fee revenue from its vaults.
The revenue they distribute to UMAMI stakers is not derived from the dilution of their supply. They generate revenue through earning yield on their Protocol Owned Liquidity and distribute the rewards to sakers in WETH. In the near future, they’ll also be launching delta-neutral USDC vaults which will provide the UMAMI holders with even higher rewards.
Earn, hedge, and deploy capital across DeFi with Brahma.
Brahma is chain agnostic and focuses on capital efficiency for every market condition by managing and activating liquidity across chains and dApps. It currently offers three products – Karma, Degen vaults, and Brahma vaults. Degen vaults are experimental products that can be accessed only by those with a sufficient Karma score. Check out if you are eligible for the Vaults by going to their Karma products which is an on-chain and off-chain scoring mechanism for the Brahma community.
Regardless of your eligibility, you’ll still be able to participate in their Brahma vaults which give permissionless access to institutional-grade risk-managed, cross-chain strategies for sustainable yield. Users simply deposit assets and the funds are dynamically routed to dApps on multiple chains to execute yield-generating strategies.