Amplify the base yield on MVLP by up to ~ 1.5X without credit or principal risk
Olive's MVLP Vault
Working mechanism of the MVLP Vault
Please note that minted MVLP immediately starts accruing rewards. However, there is a cooldown period of 15 minutes after minting before you can redeem MVLP tokens. The cooldown period of 15 minutes will be done away with in an upcoming upgrade by Metavault.
- Once funds are deposited in the MVLP Vault, we use Beefy to automatically convert the MATIC and esMVX rewards on MVLP to even more MVLP.
- The yields earned on MVLP deposited in Beefy are used to gain exposure to structured products such as range-accrual, twin-win, ascent, summit, digital, highland etc.
- The critical thing to note is Olive only uses the yield component on MVLP to run these strategies, thus ensuring users' funds are never exposed to credit or principal risk.
- The yields generated from these strategies are automatically reinvested into the MVLP vault, generating auto-compounding returns.
- The last cycle's yield is treated as principal in the current cycle, which means it will not be used to run the strategies, thereby ensuring incremental principal protection.
- The best part is there is no lock-in. You can invest or withdraw anytime. However, if you withdraw between cycles, you will lose out on the yields accrued at the cycle's end. Cycles run from Monday to Monday, 1 PM UTC.
MVLP APR on Beefy as of 17th March 2023
- Suppose a user invests 1000 MVLP tokens into Olive MVLP Vault
- Olive harvest 11.55 MVLP (= 1000 MVLP x 60.24% yield / 52.1429 weeks) and invest them in structured products
- Olive has historically amplified base yield by ~1.33X on a cycle by cycles basis, which grows to ~1.5X with auto-compounding
- Olive receives 15.36 MVLP (= 11.55 MVLP x 1.33 amplification factor) from its investment in the structured products and re-invests in the vault to compound
- MVLP APR on Beefy: 60.24% (as of Friday, 17th March 2023)
- MVLP Yield on Olive = 158% = (1 + 15.36 / 1000) ^ 52.1429 - 1 + 5% + 31.6% MVX APR)
Whether the MVLP base APR on Beefy moves up or down, with our MVLP Vault, you can be sure you will earn the highest real yields on MVLP in DeFi with no - credit risk, principal risk or lock-in.
If you wish to partner with us on the Principal Protected Vaults, please submit a partnership proposal on our Discord. We will get back to you at the earliest.