What are Perpetual Vaults?
The golden Goose of DeFi
Imagine depositing dollars into a machine that perpetually makes money.
When you first step up to the perpetual money machine, you drop in your dollars, and in return, the machine gives you tokens, like a receipt. We call them Perpetual Vault Tokens or PVTs.
You pop your tokens into the staking zone (basically a magical place of interest-earning accounts in the crypto world) based on what types of returns you want the machine to make for you.
The machine then goes and finds all the best DeFi returns available. It generates those returns for you and produces a conveyor belt of income, which you can claim your share of based on the tokens the machine gave you initially.
If you no longer want to benefit from the returns that the machine is generating, you can collect your tokens from the staking zone and sell them to someone else who wants them.
Perpetual Vaults are a simple way for users to get exposure to an automated DeFi strategies. The complexity and high gas cost involved in structuring strategies in a perpetual way (strike selection, expiry selection, rolling over positions) make it difficult for the average retail investor to participate.
In perpetual vaults, when a user deposits their chosen currency they can never withdraw it, meaning that deposit will perpetually work in the SyncDAO vault to provide users with ongoing returns. Users will receive a Perpetual Vault (PVT) Token(s) as receipt of their deposit and this can be transferred or sold to other parties. Creating a secondary demand for the perpetual vault tokens and a way for a user to effectively cash out their principle.
Perpetual Vaults create ongoing streams of income from DeFi APYs without users being able to interrupt the flow.
With our first Perpetual Vault, a user can NEVER withdraw their original deposit, this novel idea creates different behaviours and potential products. However a user can sell their PVT for a dollar through our PVT buybacks program, effectively making a stablecoin in and of itself.
ALL verifiable and done trustlessly in the smart contract.
Last modified 4mo ago
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