FAQ On Smart Vaults
Cafeswap team harvest and reinvest users profit every 4 Hours, This timing depends upon the total investment in the vault the higher the TVL of that vault higher the auto compounding takes place.
Any user can call the harvest() function in the strategy and auto compound the profits for all users and he will be rewarded with 0.5% fees for the gas fees paid
- The svCafe Token represents the share of the Vault the user has. As the vaults generate profit, the amount of shares (svCafe Token) remain constant, and the underlying token amount increases.
- There is no deposit fee, so the amount of tokens you deposit is maintained the second after you deposited. That amount should increase over time as the strategy generates profit.
- The rewards gets updated every time the auto compound takes place,The profits generated are directly added in the deposited section of the respective vault.
- To track the exact profits Cafeswap team is building solutions on top of it, Until then users should keep track of the deposited amount to see the significant profits.
- APR reflects the simple interest rate over a year’s time.
- APY describes the rate with the effect of compounding.
- APY is the highest possible way to generate profits on assets in an exponential manner.
- A daily compounded interest of 1% would yield 3678.34% a year, While a simple interest will gain you 364%