NEW CAFFEINE BUYBACK VAULTS ARE NOW AVAILABLE WITH EXCITING NEW FEATURES FOR CAFESWAP BREWERS

Samson Dogo
3 min readOct 19, 2021

--

DeFi consumers always look for the best methods to get the most out of their investment. Auto-compounding is one of the methods that has recently gained popularity for generating high returns from the liquidity available.

An auto-compounding vault is a computerized instrument that collects and reinvests your investment on a regular basis. After your initial investment is put, you are not obliged to perform anything as a user. Your rewards are collected and re-staked in the pool on a regular basis, resulting in compounded earnings and returns on your behalf over time.

Brewers in SmartVault get svCafe tokens, which reflect their vault shares/stake in the vaults, and may be used to farm the delicious MOCHA.

There are some awesome things about auto-compounding, but there are some disadvantages to this technique that should be considered:

  1. Vaults impose heavy selling pressure on the token and consequently decrease the price floor of the token.
  2. If the price floor drops, it will cause a resultant reduction in APY and TVL.

Given these circumstances, CafeSwap have no intention of abandoning the Brewers. That’s why they are presenting a brand-new, one-of-a-kind mechanism. Because when life throws you lemons, you should swap them in for coffee.

CafeSwap BuyBack Vaults are tools implemented to alleviate selling pressure on BREW/pBREW and, as a result, boost the value of the tokens. This new yield optimization system will optimize earnings for your BREW/pBREW, resulting in a greater percent APY. It works by depositing tokens into the CafeSwap staking pool in an indirect manner, allowing the pools to distribute additional rewards.

  1. First, users will deposit CAKE in CafeSwap BuyBack vaults
  2. The CAKE will then be deposited into the source farm that is PancakeSwap.
  3. The token obtained from the deposited CAKE will be auto-converted into BREW tokens.
  4. The BREW will be bought back from the market by selling the CAKE tokens, hence increasing the price floor of BREW.
  5. The Buyback BREW will then be sent to CafeSwap single staking pool, which will generate more BREW and result in higher APY.

Instead of auto compounding, customers will optimize their BREW/pBREW, earning a higher APY percent than planned. CafeSwap aim to provide Brewers the best returns possible, hence the reason of the adding this fresh new option that allows you to get the greatest APY percent without minting a single more BREW.

•All maximum platforms conceivable, including the OG and Degen pools, will be auto-compounding.

•To get the largest buyback rate for BREW/pBREW, we will cover the most platforms, therefore boosting the price floor with contrast purchasing pressure.

  • At the same time, we’ll be burning a portion of the payouts from the Cafeswap single staking without affecting the APY percentage.

The continuous burning and imposed purchasing pressure will provide a higher price floor for BREW and pBREW.

Single staking vaults will be available on the platform very soon, starting with pBREW on the Polygon network before getting into LP vaults a little later on.

About CafeSwap

CafeSwap is a DeFi project that aims to make decentralized finance services accessible to the general public. The De-Fi protocol accomplishes this ambitious goal with a variety of innovative features, including a decentralized exchange, yield farming, staking, yield optimization, portfolio tracker, twin farms, and others.

--

--

Samson Dogo

Blockchain and cryptocurrency enthusiast/ambassador