Vaultka
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FAQ

General

  1. 1.
    What is Vaultka?
Vaultka provides customized vaults that are designed to optimize the return of the Perp DEX LP for each respective Perp DEX on Arbitrum, providing a one-click solution for users.
The novel Pay-in-advance Lending mechanism allows lenders to earn a stable reward, with a protected minimum while exposing to upside potential.
  1. 2.
    How does Vaultka generate revenue?
Fees are collected when positions are closed and withdrawn in strategic vaults.
  1. 3.
    Which chain is Vaultka built on?
Vaultka is launched on Arbitrum, building on top of Perp DEX LPs.

Lending FAQ

  1. 1.
    How is the lending APR calculated?
In the new Pay-in-advance model, the APR consist of a Base APR and a Bonus APR. The Base APR is calculated with the the total rewards from all positions in the previous quarter, while the bonus reward is the total rewards in the previous week. Please refer to the Pay-in-Advance Model page for detailed information.
  1. 2.
    How is yield distributed for Water tokens in the Pay-in-advance model?
The protocol's Redistributor ensures the rewards are prepaid on an hourly basis, directly contributing them to the Water vault. Through an automated compounding mechanism, the value of each WATER token is continuously multiplied. As a result, the total value of the water vault steadily grows, leading to an increase in the price of each individual WATER token. For a more comprehensive understanding of this process, please refer to the Mechanism page for detailed information.
  1. 3.
    Can my position be liquidated as a lender?
Lender’s positions are well protected and all downside risks will be borne by leveraged users. The debt-to-value ratio is closely monitored, and liquidation will be triggered when the threshold is met, in order to protect lenders.
  1. 4.
    Can I take losses due to bad debt
It is highly unlikely. Vaultka implements a conservative liquidation threshold to safeguard lenders, ensuring that liquidation procedures are conducted even amidst significant price fluctuations. Additionally, compared to other tokens or DEX LPs, Perp DEX LPs exhibit relatively lower price volatility, further bolstering lenders' confidence in full coverage.
  1. 5.
    Are there time limits to lending/borrowing positions?
There is no time limits for entering or exiting positions, except for specific strategies that rely on external protocol rules and restrcitions
  1. 6.
    What are the risks?
Lenders are shielded from price fluctuations and downside risks, with the only existing risk being the Smart contract risk. Vaultka prioritizes the safeguarding of customer funds by placing significant emphasis on this aspect. To demonstrate our commitment to security, we have conducted multiple audits and opened bug bounties to the public, showcasing our unwavering confidence in maintaining a secure environment. For further details, please consult the Security & Audit Page.
  1. 7.
    Is it a must to migrate my funds from the Reward-Split s-WATER pool to the new pay-in-advance pool?
While not mandatory, we strongly encourage users to consider migrating their funds to the new pool embracing the pay-in-advance model. This move will grant them access to the enticing rewards on offer. It's important to note that the Reward-split pool for Sake will soon be deprecated, and funds within that pool will no longer accrue any additional rewards.

Strategic Vaults FAQ

  1. 1.
    How is yield calculated?
The leveraged LP yield is calculated by fetching directly from the underlying protocol, minusing the fees and reward split ratio. Please note that each protocol might have different way of calculating their APR. Users can refer to Vaultka’s Market Insight page to understand each protocol’s calculation method.
  1. 2.
    Is my position an ERC20 or NFT?
Upon depositing funds into the strategic vaults, users will be issued a Proof of Deposit token, which is an ERC20 token.
  1. 3.
    How do I determine my loan health?
The health of debt-to-value ratio is closely monitored and updated to ensure the health of leverage positions. When the DTV ratio exceeds 95%, liquidation will be triggered. Users can refer to their position’s liquidation price displayed in portfolio page.
  1. 4.
    Can I deposit VLP/GLP/gDAI directly?
At present, Vaultka only supports the deposit of 4 stablecoins, including USDT, USDC.e, USDC and DAI.
  1. 5.
    Where are my deposits stored?
The entire leveraged position will be utilized to mint the underlying LP and seamlessly staked within the corresponding vault contract. Users can conveniently locate their proof of deposit token in their wallet address, such as SPOD representing the SakePOD token.
  1. 6.
    What Price Oracles are used?
No Oracles are implemented in Vaultka, as Vaultka contract interacts directly with the underlying contracts for LP price. However, The integration of Chainlink is scheduled for the upcoming vaults to facilitate the liquidation process.
  1. 7.
    Does the APR displayed in the UI reflect the calculation before or after factoring in fees and the reward split?
The APR shown in the UI has already factoed in fees and reward split.
  1. 8.
    What is the reason behind the initial negative earnings in my account?
The initial negative earnings are a result of the minting fee imposed by the underlying protocol and Vaultka. Additionally, if the price of the LP drops below the entry price, it will also result in negative earnings being displayed.