MoonFarm
  • Moonfarm Whitepaper
  • 1. Introduction
    • 1.1. CeFi vs DeFi vs CeDeFi
    • 1.2. Current Market
    • 1.3. The gap between users demand and the market
  • 2. MoonFarm in a nutshell
  • 3. Why MoonFarm?
  • 4. MoonFarm Products
    • 4.1 MoonFarm Ecosystem Products Overview
    • 4.2 Moonfarm Vaults
    • 4.3 Yield optimization strategies
    • 4.4 MoonSwap
    • 4.5 MoonFarm Ecosystem Fee Structure
  • 5. MFO Utility Token
  • 6. Roadmap
  • Userguide
    • 1. How to use it?
    • 2. How to buy MFO on PancakeSwap
    • 3. How to add LP for MFO-BUSD token
    • 4. How to stake/unstake LPs token MFO/BUSD on Moonfarm Finance
  • Fees Structure
  • FAQ
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  1. 4. MoonFarm Products

4.3 Yield optimization strategies

Previous4.2 Moonfarm VaultsNext4.4 MoonSwap

Last updated 2 years ago

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What is a MoonFarm Vault?

Yield Optimization Strategies

MoonFarm Yield Optimization Strategies (YOS) is a set of smart contracts that implement different farming strategies that utilize the deposited assets to generate the best yields for users. The implementation of the strategies basically moves assets from one farming application to another one with higher interest. This will be mostly done automatically based on our system, which automatically monitors and tracks the best farming applications with high yield and low risks.. Rewards/profits generated by YOS are regularly updated, harvested, swapped for the original vault asset, and deposited again for compound farming. Each vault has a unique strategy and the strategy will be improved constantly based on the observations of our AI-based monitoring engines.

By having YOS, users only need to deposit single assets and let the strategies generate profits from the funds. While this sounds familiar with centralized finance, the difference is the profit that MoonFarm YOS generates for users.

MoonFarm automates the whole compounding process, making it as close to optimal as possible. The compounding frequency depends on different variables in the system such as Total Value Locked (TVL), and Annual Percentage Rate (APR).

In our initial version, MoonFarm Vaults will be harvested multiple times every day, and profits are automatically reinvested (compounded). Rewards distribution will be operating on a daily basis. The larger value of a vault is, the more frequent the vault is harvested.