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How MetaVaults Work

Welcome to the new era of yield farming! With MetaVaults, everyone involved can benefit - from the protocol itself, to vault participants, to the ecosystem as a whole.
Each deposit into a MetaVault helps to generate liquidity for USDy and BSHARE, as well as stimulate other aspects of our ecosystem. Plus, each deposit also increases the Perpetual Ratio for all participants in the vault. This means that as the TVL grows, all participants will see their balance increase accordingly - which also means more MetaRewards!
But it doesn't stop there. While MetaVault participants are earning USDy rewards every 8 hours, our protocol is also performing a rehypothecation process. This further stimulates our ecosystem through the Quantum Buy-Back and SuperNova Lottery.
The end result is that all participants of the YSL.IO ecosystem will be able to share in the success of our MetaVaults!

MetaVault Deposit Process

Step 1: Deposit Fee

  • Two-thirds of the fee will be sent as BUSD to the referral contract.
  • One-third of the fee will be deposited to increase the Perpetual Ratio of the vault.

Step 2: Perpetual Ratio

  • As the TVL of the MetaVault has increased and the supply of its corresponding receipt token has remained the same, the Perpetual Ratio will increase.
  • Perpetual Ratio of TOKEN vault = supply of TOKEN on vault contract / supply of TOKEN-S on vault contract

Step 3: Ecosystem Allocation

  • 10% of the allocation will be sold to purchase YSL -> All acquired YSL will be sent to the YSL AceVault, increasing its Perpetual Ratio.
  • 10% of the allocation will be sold to purchase xYSL -> All acquired xYSL will be sent to the xYSL AceVault, increasing its Perpetual Ratio.
  • 30% will be sold for BUSD and paired with an equivalent value of minted BSHARE -> Creating BSHARE-BUSD liquidity equivalent to 60%.
  • 50% will be sold for BUSD and paired with an equivalent value of minted USDy -> Creating USDy-BUSD liquidity equivalent to 100%.

Step 4: Tokenized Vault Receipt

  • The amount of receipt tokens a user receives will be dependent on the new Perpetual Ratio - after one-third of the deposit fee has been added to the MetaVault.
  • Receipt tokens minted = TOKEN that remains after deposit fee and ecosystem allocation / TOKEN vaults Perpetual Ratio

Step 5: Position in MetaVault

  • The remaining tokens along with the minted receipt tokens are added to the MetaVault.

Step 6: BSHARE adequation

  • The amount of BSHARE minted will be dependent on the ecosystem allocation that was deducted and the current BSHARE price.
  • The minted BSHARE will be sent to the users wallet.
  • BSHARE minted = ecosystem allocation deducted (dollar value) / BSHARE price.

Step 7: Multiplier NFT

  • A Multiplier NFT is only minted for a user when they make an initial deposit into a MetaVault.
  • The minted Multiplier NFT will be sent to the users wallet (non-transferable).
  • The Multiplier NFT will remain active for a period of 730 hours and will be specific to the vault.
Please note: the deposit process will be different for our AceVaults, HydraVaults and bespoke BANANA vault.

What is the purpose of the Multiplier NFT?

  • When you make an initial deposit into a MetaVault, the protocol will mint a Multiplier NFT. This will be done for each MetaVault that you enter. For example, if you participate in 5 MetaVaults, you'll hold 5 unique Multiplier NFTs (one for each MetaVault)
  • The Multiplier NFT will be utilised by the protocol to determine your multiplier for that vault.
  • Each Multiplier NFT has a limited period of activation, whereby it will only remain active for a period of 730 hours from the time of minting. 730 hours equates to 1 month (24 hours * 365 days / 12 months).
  • In other words, when you deposit into a MetaVault, you will only obtain the Multiplier as per your chosen level for a period of 730 hours (while the Multiplier NFT is active).

What happens when a Multiplier NFT deactivates?

  • Once your Multiplier NFT for a MetaVault has been deactivated, you'll obtain a base multiplier of 1x for that MetaVault.
  • This means you'll only obtain USDy MetaRewards equivalent to the underlying farm APR. However, you are able to reactivate your Multiplier NFT or acquire a new Multiplier NFT by withdrawing your total balance and making a redeposit.
  • To reactivate your Multiplier NFT you will need to deposit tokens equal to or greater than their current balance in the MetaVault. When a Multiplier NFT is reactivated, the activation countdown is reset to 730 hours.
  • Alternatively, you can acquire a brand new Multiplier NFT by withdrawing your position (at which point your current deactivated Multiplier NFT will be burnt) and subsequently making a redeposit at your chosen Multiplier Level (at which point a brand new Multiplier NFT will be minted for your position).

MetaVault Rehypothecation Process

  • The rehypothecation process for our PancakeSwap and Biswap MetaVaults will occur every 8 hours, whereby the protocol will harvest the APRs for each MetaVault and exchange the harvested APR into BUSD.
  • Subsequently, the protocol will deduct a $50 Controller Fee from the acquired BUSD.
  • The remaining BUSD will be utilised to perform the Quantum Buy-Back.
  • This will involve 25% of the BUSD being used to purchase YSL, 25% used to purchase xYSL and the remaining 50% being sent to the treasury contract.
  • The YSL that is acquired will be split equally between the YSL vault and the SuperNova Lottery. Similarly, the xYSL acquired from the Quantum Buy-Back will be split equally between the xYSL vault and the SuperNova Lottery.
  • Following this, MetaRewards (USDy) will be minted by the protocol for participants of the MetaVaults.
  • The amount of USDy that is minted for each participant will be dependent on the participants share of the BUSD acquired from selling the vault's APR (less the controller fee) and the Multiplier that is applicable for the participant.
  • If the participant holds an active Multiplier NFT for the MetaVault, the Multiplier that a user obtains for that vault will be determined by the Multiplier Level that was selected by the user when they deposited into the vault. If the participant holds an inactive Multiplier NFT for a MetaVault, the participant will obtain a Multiplier of 1x for that vault.
👉 Learn about our ApeSwap MetaVault Rehypothecation Process​

MetaVault Withdrawal Process

  • When a participant withdraws from a MetaVault, the protocol will first burn the vault receipt token(s) (for example CAKE-S) being unstaked, then the protocol will transfer the token (for example CAKE) from the MetaVault staking contract to the users wallet.
  • Please note: protocol will also burn the participants Multiplier NFT for that MetaVault if they have withdrawn their entire balance from the MetaVault.
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