1. What is an eVault?
Our eVaults employ hybrid stable asset strategies wherein users invested assets get exposed to the benefits of volatile assets while keeping their principles protected from constant market fluctuations.
eVaults are a direct remedy or response to the DeFi yield optimization market. eVaults form one of the core feature line of the ETHA Lend ecosystem In the current iteration, there are four eVaults for wETH and wBTC, MATIC, and LINK.
While our goal is to offer various vault strategies based on the volatility of the supplied assets, the eVaults use a stable asset strategy.
The invested stable assets get exposure to volatile assets, while the principal is protected from high volatility. The interest earned from the stable assets is periodically swapped on a daily basis for volatile assets, e.g., WETH. Stable asset strategies are suitable for risk-averse users.
A liquidity provider deposits a stable asset such as DAI, USDC, or USDT and receives rewards in a volatile asset such as wETH or wBTC. All eVaults participants currently earn additional ETHA rewards in real-time for providing liquidity.
Funds invested within the eVaults can be withdrawn at any time, providing the flexibility to withdraw assets as desired.
When hovering over the eVault's APY, you will be able to view the breakdown for each eVaults return.
In addition, you can also see the total amount invested in each eVault by the users also referred to as (TVL - Total Value Locked), and the volatility status, which indicates the rapid price movement of the supplied asset.
Summing it all up, eVaults are unique because they:
- Efficiently provide algorithmically driven optimal yields based on different hybrid strategies
- Takes out all the manual work and constant opacity for our users while they just sit back and see their rewards rolling in EVERY SINGLE DAY.
2. What are the APYs shown on the eVault page?
You can see the APYs of the volatile assets and the ETHA rewards when you hover your mouse on the APY % on either of the eVaults. Our APYs that are displayed reflect the estimated rate earned on an eVault annually. This rate is determined based on several different factors such as the underlying platform that is being employed (Curve and QuickSwap currently, more in the future), the strategy that is being used at the time, the total amount of funds in the vaults as well as the effect of compounding. Thus, what you see is exactly what you will receive!
3. What can I expect to receive when I make a withdrawal from an eVault?
With the current iteration of the eVault strategy, you will receive volatile assets, including wETH, wBTC, and ETHA, on the stable assets that you deposited. You shall receive the amount of yields generated in the underlying volatile asset plus the rewards in ETHA tokens minus the withdrawal fee if any.
4. What about new eVaults that will be added to the protocol?
As we mentioned in our subsequent articles on the medium blog, we will be expanding on eVaults, adding new strategies, benefits, features, and underlying asset deployment. Users can effectively suggest any new potential vaults to be added in the Telegram Chat Channel.
5. What risks do eVaults have?
The current iteration of the eVaults are curated for the risk-averse users. Thanks to our stable asset strategy, your assets can be protected from high market volatility while allowing you to enjoy higher profits. As for other underlying risks of any smart contract elements, here are some general points that can be considered:
- Assets deposited into the eVaults do not have a risk of depreciating in quantity but may decrease or increase in value based on the market conditions at that time.
- With DeFi being an open source for all, the risk of malicious intentions cannot be overridden, but what can be done is offer the ultimate protection against such a generalized form of economic risk.
- ETHA eVaults are fully audited, and in cases of any risks, the team does take steps to qualify then and will only interact with the ones that meet a particular set of requirements once extensive testing has been made.