Explainer: How Degen Vaults Work

1. What are Degen Vaults?

2. Who is it For?

3. Immediate Launch Details

1. What are Degen Vaults?

Vision for Degen Vaults is to create a Yearn-style platform for yield-farming strategies using LunaX (and other complementary assets).

Each vault is a combination of a smart contract and a strategy associated with it. Strategy is set by a strategy manager who is skilled at developing yield farming strategies.

Strategies can have different characteristics including APR, Risk levels, time locks, static/dynamic strategy etc.

2. Who is it For?

Degen vaults can be used by any crypto user from a beginner to advanced. It helps simplify the discovery of opportunity and execution of yield farming on LunaX.

• Discovery: Identifying the right strategies based on their risk appetite
• Execution: Implementing multiple steps across several protocols
• Monitoring: Monitoring positions to manage risks/liquidations

Stader aims to solve the above problems by creating a strategies platform called Degen Vaults. Anyone will be able to develop a strategy and create a vault (if governance approved) in the future.

3. Immediate Launch Details

Degen vaults will be launched in two Phases, with the first phase going live early March.

• The first phase (V1) will have 1–2 vaults with a strategy & lock-in period for funds

1. Users can deposit LunaX into the Degen Vault on the Stader dApp.

2. All user deposits are locked for a period of time (Eg: 1 month).

3. Strategies which are a predetermined set of functions will be performed on the deposited LunaX to earn additional yields* during the Lock-in period.

4. Once the lock-in period is completed the additional yield is distributed across users & users can then unlock their funds.

• The second phase (V2) will offer additional functionalities on top of V1 with more vaults & features like risk tranching, rebalancing strategies etc.

Watch out for the V1 Launch.