The core of what makes Dyson special

Vaults are essentially the core smart contracts that automate yield-farming processes. A vault can harvest farming incentives, sell & compound them. This has the effect of achieving a higher reward over time, turning the farming APR into an APY.

Why use a vault?

Vaults are time & gas efficient. Instead of checking your position to compound your rewards, the vault harvests rewards & compounds them automatically. Because the vault itself manages the funds, you as a depositor do not pay gas to compound your farming position.

An example:

  1. A user wants to deposit on Penrose's FRAX-MAI LP

  2. If they decide to deposit in Dyson's FRAX-MAI LP vault, the rewards are automatically compounded into more FRAX-MAI LP

  3. This has the effect of growing the share of the depositor's LP, which grows their share of rewards over time

Vaults do not lock your token unless you are depositing in a strategy in which the underlying protocol's farming mechanics require a lock. When you deposit into Dyson, you receive a dyson- prefixed token.

What are dysontokens?

A dysontoken is simply a proof-of-deposit receipt token which users can use to withdraw their assets from Dyson's vaults. As well as acting as a receipt token for users, it opens up the possibility of protocols using Dyson vaults in their strategies.

Every dyson-prefixed token is unique. There is only 1 dysontoken per vault. They are all yield-bearing in the form of compounding & yield-farming the assets deposited.

Last updated