No more fees
At the beginning, the idea of a vault was to share the stake among several people, to automate the compounding of farm rewards using gas in a more efficiently way. Hence compound automation was conceived, obtaining compound interest and at the same time saving gas.
But, there are different types of vaults.
Vaults are projects with developers that have a monetary interest, for that reason they charge a fee of the profits. As its interest is pecuniary, we place this type of vault in the category “oriented for the benefit of developers”
Later, as the vaults were no longer something new, marketing mechanisms began to be implemented to attract attention with more bulky APYs, for example by issuing tokens which were bought with part of the profits of the vaults (users money) and the like. This is a mechanism used only for marketing purposes, the tokens have no real utility and their price eventually fall, that is why we place this type of vaults with their own tokens within the same category of “oriented for the benefit of developers”, since the whales are the same developers, in addition these vaults not only use the money of the users rewards for buybacks and the like but also charge a fee for the devs.
0% PERFORMANCE FEE
Making the above clear, at this time we present the category of “user-oriented” vaults, going back to the origins, with the only purpose to achieve automation of compound in rewards and a more efficient use of gas by shared use of transactions. In this type of vaults, no part of the profits are taken either from direct fee to the project or to use that money in marketing tokens, the profits of the vault are for the user.
0% DEPOSIT & WITHDRAW FEE
The deposit or withdraw fee has another purpose, it is generally a fee that remains in the same vault and its reason is to avoid malicious use through flash loans or simple mechanical deposit / compound / withdraw of large sums carried out in a short time. With this malicious practice someone could take the profit from the users (this is not a risk for the stakes, only for the profit).
For this reason a deposit or withdraw fee is justified, but it is not the only way to tackle this problem. In fact, there are some who already are modifying this, not charging a withdraw fee, if the user maintains his stake in the vault for a certain time (usually from 48 to 72 hours).
At ZeroVaults, always with the user-oriented philosophy, we believe that requiring a 72-hour stay to avoid misuse is unnecessary. It is then that we created a different way. Before depositing in the vault, the user makes a compound, this is done internally by the vault, the user does not have to do anything more than deposit. This recalculates the participation values just before the deposit and nullifies the malicious use by accelerated deposit / compound / withdraw.
ZeroVaults is created by Supra Finance, with the objective of returning the users the chance to optimize their yields as a community.