Vesper Earn
Vesper Earn is an innovative product that allows you to generate yield in a different currency than the one you deposited.
In a traditional yield aggregator (like Vesper Grow) or yield automator (like Harvest Finance) users deposit assets to smart contracts that earn yield and realize that yield in order to compound it for depositors.
In contrast, Vesper Earn codes a different set of rules into the smart contracts that dictates what happens to that yield. That “what” can be programmed to anything – hence Vesper Earn enabling “programmable yield.” This conversion of yield can take numerous forms, and represents a new DeFi primitive that offers several interesting use cases for users and projects alike.

The Vesper Earn Difference: Deposits and Yields in Different Currencies

The key difference between Vesper “Grow” pools and Vesper “Earn” pools is that in ‘grow’ pools the deposit and the yield are in the same cryptoasset, while in the ‘earn’ pools the yield is in a different cryptoasset than the deposit.
That is,
Vesper Grow: Deposit X, Earn X
Vesper Earn: Deposit X, Earn Y
As with all Vesper financial products, Vesper Earn deposits are routed through smart contracts. The “strategy” logic in the contract determines where to place funds and in what proportions, and when to make changes to these deployments. In this way Vesper reduces the complexity, and usually the risk, of "yield farming" for the individual.

Fees

  • Platform Fee: 25%
  • Deposit Fee: 0%
  • Withdrawal Fee: 0%
Vesper Earn platform fees are realized whenever pool rebalance takes place, and fees are delivered and distributed through the revenue system in the same manner as fees on other pools and products.

A Look Under The Hood

The illustration below shows how yield is implemented in Vesper Earn pools. For the sake of this example we've created a fictitious new token, which we've called "COOL."
Say you have made a deposit in the form of ETH into the ETH-COOL Vesper Earn pool.
Step 1: Your ETH is added to ETH from other depositors and deployed to the strategy module.
Step 2: The strategy algorithmically determines where to place the funds. Deposited ETH earns yield ("APY"), in ETH.
Step 3: Periodically this "yield ETH" is used to purchase an equivalent amount of COOL on an exchange. As part of this rebalancing, 25% of the yield goes to the Vesper treasury. The remaining 75% of the yield gets added to your "COOL" balance. You can claim your "COOL" whenever you like, with no withdrawal or claim fee.

Vesper Earn Pool Rewards

Each earn pool is boosted with 1,250 VSP for the first month of production.
The ETH-DAI earn pool, which debuted in beta on September 28, was allocated 11,000 for beta users over the course of three months.

Deposited Asset - Yield Pairs

Currently supported asset/yield pairs are
Deposited Asset
Yield
DAI
ETH
DAI
wBTC
DAI
DPI
ETH
DAI
wBTC
DAI
LINK
DAI
DAI
LINK
Last modified 6d ago