Perpetual Ratio

The ever-growing value of your receipt tokens!
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The perpetual ratio is a simple but effective concept that allows your receipt tokens (and hence, your stake in the vault) to appreciate in value over time. In order to understand how the perpetual ratio works, it is first necessary to understand what happens when you deposit into one of our vaults.
Each vault has its own unique receipt token, which is minted every time you make a deposit. These receipt tokens have an inherent value that is linked to the perpetual ratio of the vault. As the perpetual ratio for a vault increases, so does the value of your underlying receipt token. In this way, the perpetual ratio acts as an internal pricing mechanism for our vaults.
At a high level, you can think of the perpetual ratio as an exchange rate between the vault token and the vault receipt token. For example, using the currency pair for the pound and the euro, GBP/EUR. An exchange rate of 100 would mean that 1 pound equals 100 euros. In a similar fashion, if the perpetual ratio of a vault was 100, it would mean 1 vault receipt token equals 100 of the underlying vault token.
In short, the perpetual ratio is a unique and powerful mechanism that has been integrated across all our vaults to ensure you're able to generate significant returns over time. Not only does it provide a fantastic opportunity for those who want to see their balance grow exponentially, but it also allows you to earn an increasing amount of rewards as your underlying balance grows.


  • The way in which the perpetual ratio operates can be visualized as a double-sided scale, with the weight of staked tokens on one side and the weight of receipt tokens on the other. When the supply of staked tokens increases and the supply of receipt tokens remains constant, this creates an imbalance and causes the side holding receipt tokens to become heavier.
  • Think of it as two pans hanging from a balance beam, with the staked tokens on one pan and the receipt tokens on the other. If the supply of staked tokens increases and the supply of receipt tokens stays the same, the side holding the staked tokens will become heavier and the scale will tilt towards that side.
  • This imbalance occurs in certain situations when the protocol adds tokens to the vault without minting an equivalent amount of receipt tokens. For example, this happens when the protocol adds tokens from the deposit fee or withdrawal fee. As a result, you can expect the perpetual ratio of a vault to increase every time tokens are deposited, unless the deposit fee is set to 0%. Similarly, if there is a withdrawal fee, the perpetual ratio will increase with each withdrawal.
  • The Perpetual Ratio is a key metric that can impact the value of your staked tokens in a vault. As the perpetual ratio increases, the value of your receipt tokens will also increase, which will translate to an increased staked balance in the vault.
    This in turn, can result in you receiving a larger share of the rewards allocated to the vault, and a higher balance of compounded yields that can be withdrawn.
  • In order to maximize the benefits of the Perpetual Ratio, it is recommended that you aim for a low perpetual ratio by entering the vault as early as possible and staying staked for as long as possible. However, it is important to note that remaining staked or entering early is not required, as the Perpetual Ratio is guaranteed to increase as the TVL of the vault grows.
  • Regardless of your strategy, it is important to be aware of how the Perpetual Ratio works and how it can impact your position in the vault. Keep in mind that if you make a withdrawal, your receipt tokens will not be the same amount as when you redeposit, as the Perpetual Ratio would have increased.
  • The perpetual ratio in a vault will never decrease when you make a withdrawal. When you withdraw your staked tokens, our protocol burns an equal amount of receipt tokens and removes the same amount of staked tokens from the vault. So, the balance between staked and receipt tokens is maintained, keeping the perpetual ratio constant.
  • However, if a withdrawal fee is added, you will receive fewer staked tokens in exchange for the same amount of receipt tokens being burned. This means that the balance of staked and receipt tokens in the vault will decrease, and the perpetual ratio will increase. In short, the perpetual ratio remains constant unless a withdrawal fee is added, in which case it can increase.