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Into the Vaults

Deep dive behind the inner workings of Unagii Vaults and how its strategies are designed.

Into the Vaults

Unagii Vaults is designed for users to yield with one simple action: just deposit into the Vaults. All the rest of the yield farming hard work will be handled by Unagii in the background.

This article looks at some of the key components in our design, how strategies are derived, and how the Vaults actually work.

Key Components

1. Prioritizing Safety, Gas Costs, and Yields

When designing the Vaults, one of the key things we planned for was long-term consistency and accessibility for everyone. So we prioritized safety over gas costs before yields. Additionally, we adopted a debt system to ensure that our Vaults will be resistant to price manipulation from external sources.

For added security, only whitelisted contracts can deposit and withdraw from our Vaults, acting as an extra layer of protection against smart contract attacks.

2. Cheaper Deposits and Withdrawals with Reserves

We know it's important for users to be able to deposit and withdraw from the Vaults as freely as any other DeFi protocol. So we had set aside reserves to allow users to deposit and withdraw their assets at the lowest gas costs possible.

With a simple set and forget experience, yielding with Unagii means there is no need to pay additional gas to stake more tokens to earn rebates or fees.

3. Strategies

The Vaults are designed to work with a bank of strategies based on varying conditions and Curve Finance has proven its stability since its launch. Our strategies are optimized to the highest yielding DeFi protocols that we deem are safer and stable. We provide liquidity to and automate the sales of rewards to provide users with daily compounding.

For Vaults under Stash, some of our strategies include the GUSD, 3POOL, Compound, and BUSD pools. For Vaults under Growth, the team is potentially looking into ETH and WBTC pools, and many more.

Any new strategies launched will be deployed behind a time lock where we have to call the 24-hour time lock to approve the new strategy. This means users will be able to verify such events on-chain for ease of mind. 

How Vaults work

Unagii Vaults Design

For example, when Bob deposits 10,000 USDC into a USDC-Stash-Vault, he is only required to approve the transaction and pay for gas on deposit. Unagii then invests Bob's deposit into the current strategy pool, i.e., the Curve GUSD pool. Unagii will also automate the sale of Curve governance tokens into the stablecoin with the highest premium. With the power of consistent compounding, our Vaults will help Bob optimize the market's best yields.

We have completed our first audit and have more planned for new future improvements to our Vaults and new strategies.

Read about the launch here ->

about the author
Mervyn Chng

Co-Founder & CEO

News
2
min read
by
Mervyn Chng

Into the Vaults

January 27, 2021
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Into the Vaults

Unagii Vaults is designed for users to yield with one simple action: just deposit into the Vaults. All the rest of the yield farming hard work will be handled by Unagii in the background.

This article looks at some of the key components in our design, how strategies are derived, and how the Vaults actually work.

Key Components

1. Prioritizing Safety, Gas Costs, and Yields

When designing the Vaults, one of the key things we planned for was long-term consistency and accessibility for everyone. So we prioritized safety over gas costs before yields. Additionally, we adopted a debt system to ensure that our Vaults will be resistant to price manipulation from external sources.

For added security, only whitelisted contracts can deposit and withdraw from our Vaults, acting as an extra layer of protection against smart contract attacks.

2. Cheaper Deposits and Withdrawals with Reserves

We know it's important for users to be able to deposit and withdraw from the Vaults as freely as any other DeFi protocol. So we had set aside reserves to allow users to deposit and withdraw their assets at the lowest gas costs possible.

With a simple set and forget experience, yielding with Unagii means there is no need to pay additional gas to stake more tokens to earn rebates or fees.

3. Strategies

The Vaults are designed to work with a bank of strategies based on varying conditions and Curve Finance has proven its stability since its launch. Our strategies are optimized to the highest yielding DeFi protocols that we deem are safer and stable. We provide liquidity to and automate the sales of rewards to provide users with daily compounding.

For Vaults under Stash, some of our strategies include the GUSD, 3POOL, Compound, and BUSD pools. For Vaults under Growth, the team is potentially looking into ETH and WBTC pools, and many more.

Any new strategies launched will be deployed behind a time lock where we have to call the 24-hour time lock to approve the new strategy. This means users will be able to verify such events on-chain for ease of mind. 

How Vaults work

Unagii Vaults Design

For example, when Bob deposits 10,000 USDC into a USDC-Stash-Vault, he is only required to approve the transaction and pay for gas on deposit. Unagii then invests Bob's deposit into the current strategy pool, i.e., the Curve GUSD pool. Unagii will also automate the sale of Curve governance tokens into the stablecoin with the highest premium. With the power of consistent compounding, our Vaults will help Bob optimize the market's best yields.

We have completed our first audit and have more planned for new future improvements to our Vaults and new strategies.

Read about the launch here ->

AUTHORED BY
Mervyn Chng

Co-Founder & CEO