ISO

Vaults

What is a isoVault?

Vaults are investment instruments that employ a specific set of strategies for yield farming. They make use of automation to continually invest and reinvest deposited funds, which help to achieve high levels of compounded interest. Vaults are the core of the Industry Plant ecosystem. In an Industry Plant isoVault, you earn more of the asset you stake in it regardless if this is an liquidity pool (LP) token or a single asset. For example, vaults where one can stake BTC-BNB LP will result in more BTC-BNB LP over time, effectively growing your share in the vault and thus allowing for more and more rewards over time.

Despite the name 'isoVault' suggests, user funds are never locked in any vault on Industry Plant. One could always withdraw from a vault at any moment in time. Industry Plant also does not own user funds staked in vaults. However, it is generally best to view vaults as investment tools to store funds for the medium to long term in order to have the effects of compounding really kick in.

When browsing the vaults on the platform, you will see the annual percentage yield (APY), which takes the frequent compounding into consideration compared to annual percentage rate (APR) which does not. You will also see daily interest percentages and the total amount invested in a vault by all users (TVL). Furthermore, one can see what underlying platform the vault is using as a source of revenue.

Each vault can either refer to a pair of tokens invested in liquidity pools, such as CAKE-BNB LP tokens within the Polygon Chain ecosystem, or a single token invested in lending platforms or single stake reward pools. After depositing tokens to a vault, the user is supplied with vault specific seedTokens which represent their share in the vault. We will elaborate on seedTokens in the next section.

Anyone in the community can work together to build new strategies and submit them to governance for voting. We look at vault requests via our official forum where anyone is free to submit vault requests.

Summarizing, vaults can:

• Efficiently execute yield farming strategies.

• Compound rewards into the initially deposited token amount.

• Use any asset as liquidity.

• Provide one asset as collateral for another.

• Manage collateral at a safe level to mitigate liquidation.

• Put any asset to work to generate a yield.

• Reinvest earned profits.

What are seedTokens?

A seedToken can be seen as a receipt that you get when depositing into any Industry Plant vault. This is a fully automatic process. {needs more work}

How often do the vaults harvest their profits and reinvest?

Vaults are normally harvested multiple times daily and profits are automatically reinvested (compounded). Larger vaults, such as our BSC $CAKE vault, are harvested even more frequently. You can check the harvesting and compounding rate of a vault using this how-to guide.

Why can't someone just do this themselves?

They could, but vaults help you save on personal time and transaction fees, maintain healthy collateral to debt ratios, self-optimize for the best possible yields, and automatically reinvest earnings. Attempting to do this manually would result in large inefficiencies. At Industry Plant we like to say: "Sit back and relax, the vault does all the work for you."

What is the vault fee structure?

Most vaults have a performance fee structure, taking 4.5% of harvest rewards. This 4.5% on profits is again split up: 3% is distributed back to the reward pool and to $SEEDstakers, 0.5% is allocated to treasury, 0.5% is for the strategist that developed the vault and 0.5% for the one calling the harvest function. These fees are already built into the APY of each vault and daily rate. You do not need to calculate these yourself.

The performance fee on additional yield i.e. vault profits is largely distributed back to $SEED stakers and is the main source of Industry Plants platform revenue. A part of it also funds the treasury which is used to further fund platform development and security and other initiatives. The performance fee was also implemented to promote community engagement and governance participation. A successful and engaged community is critical for our future growth, which in-turn rewards platform users even more.

Furthermore, vaults have a withdrawal fee. The main purpose of this fee is to prevent possible exploits from bad-faith actors. Without the fee, somebody could deposit just before the harvest() function execution and withdraw straight after that event, taking a % of the gains generated by legitimate stakers. Withdrawal fees stay in the vault and are shared amongst vault funds.