Farms will support the ability for users to employ optimizer strategies for a given farm for which they have a time lock (active or expired) that will automatically reinvest pending rewards to form and stake liquidity used by that farm. This feature will be available as an option for ALL farm types including farms that are not emitting the DEX's utility token, $CROS.
Scheduled mechanisms will vary and operate via a time range to avoid malicious activity. Users enrolled in an optimizer strategy for a given farm will not be able to harvest rewards or withdrawal (in the event the users time-locked plan has expired) without first disabling the optimizer strategy.
Upon disabling the optimizer, there will be two options:
- Next Run
- The Next Run option will unlock the optimizer strategy for the wallet at the end of the next scheduled run. The wallet will receive the full benefit of the strategy.
- The Immediate option will unlock the optimizer strategy for the wallet immediately. The wallet will only receive the LP tokens back into their wallet from the prior run. Their harvest farm rewards will restart as normal from the point of disabling.
Note: The disable options for the optimizer is subject to change
Users will be able to enroll in one of (3) basic time based strategies for a fee:
- Optimization Schedule: hourly
- Performance Fee: 20%
- Burn Allocation: 37.5% of the fee collected will be allocated toward a BB&B of $CROS.
- Optimization Schedule: Every 6 hours
- Performance Fee: 15%
- Burn Allocation: 33.33% of the fee collected will be allocated toward a BB&B of $CROS.
- Optimization Schedule: Every 12 hours
- Performance Fee: 10%
- Burn Allocation: 20% of the fee collected will be allocated toward a BB&B of $CROS.
Note: For $CROS emitting farms, the amount allocated for BB&B will just be burnt since there is no requirement to buy the tokens.
The fees will be assessed across the harvested rewards plus boosted rewards for all wallets staked in that strategy.
A strategy will not run if the expected gas for harvest and LP formation exceeds 1/2 of the current balance of the harvest in $native token equivalents. Skipped Strategies will re-evaluate again when the next scheduled strategy is employed. This will likely only be seen in the early stages of enrollment until the user's balance is built up.
What is a yield optimizer?
A yield optimizer is an automated service that strives for maximum possible returns on crypto-investments, much more efficiently than attempting to maximize yield through manual means.
Each optimizer has its own unique strategy for farming, which normally involves the reinvestment of crypto assets staked in liquidity pools. At the simplest level, it farms the rewards given from staked assets and reinvests them back into the liquidity pool. This process increases the compounded yield as it is now calculated on both the amount staked as well as the interest that has been received.
Compounding fees are remunerated among all optimizer participants, making it less-expensive for each individual user.