v1 Vaults
Information on Lite Vault v1
Last updated
Information on Lite Vault v1
Last updated
This information is here for archival purposes. The information below including fees charged, functions and features, does not apply to current Lite implementation.
Instadapp Lite utilizes the AAVE protocol and stETH or Lido Staked ETH (stETH). stETH is a tokenized staking deposit on Ethereum that earns staking rewards daily. stETH can be used as collateral on AAVE and borrowed against ETH recursively to gain increased exposure to staking rewards. By doing this we can increase our exposure to staking rewards by up to 3x
We can execute a similar strategy to the ETH Vault shown above, except in this vault we use the collateral value of the deposited asset to borrow recursively stETH, this allows us to offer a nice stable yield based on POS rewards to other assets!
Instadapp Lite charges a 10% performance fee on v1 vaults profits made. This fee is already calculated in the Net Apr shown.
Instadapp Lite charges a 0.01% exit fee on v1 vaults that is repaid to the remaining depositors; this protects the Vault from spam or other malicious use.
At any time users can redeem their entire iToken for their portion of the vault. Normally users withdraw from the withdraw pool however if you wants to withdraw more than whats available you can force a deleverage of the vault to unwind your portion of the vault.
You can issue a withdraw and deleverage by checking the box in the Withdraw panel.
Once the option to Force Deleverage and Withdraw is ticked on you will be able to withdraw your entire balance even it its more than the availably shown withdraw pool.
When you deleverage the vault, the vault unwinds by selling stETH collateral to repay ETH debt. When issuing a deleverage there will be increased gas costs as the transaction uses a flashloan to unwind the vault and withdraw your deposit.
Due to the complexity of the vault and the leveraged state of the vault, positions that are smaller (less than $5000) may not be able to be force deleveraged.
When you force deleverage the vault, the vault sells stETH Collateral to repay the ETH debt in the vault allowing you to withdraw your position. The caller of the deleverage will pay for the losses incurred to the vault in the transaction. When forcing the vault you must return the vault to the same health it had prior. This means if you force deleverage the vault when stETH is less than ETH price, you pay additional costs to maintain the vault ratio.
