Eleven Finance vaults explained

Background

Some DeFi protocols offer participants the opportunity to receive returns or yield for interacting with them. In the quest for yield, DeFi users often seek out a variety of platforms including decentralised exchanges as sources of yield. These platforms often require users to deposit or 'stake' assets with them in the form of single assets or providing liquidity to the platform.

Providing liquidity to the platform is as simple as owning both tokens of any given pair, supplying these to the exchange, in return for an LP token, or put simply a record of you providing a given amount of liquidity to the ‘liquidity pool’. Single assets are often just purchased and deposited on the platform.

Platforms provide yield in the form of sharing revenue and/or distributing their own token. For example the PancakeSwap platform (on Binance Smart Chain) offers liquidity providers of certain pools further rewards, in the form of their native token $CAKE, in return for staking these LP tokens with their platform. Given the specific pool and amount of liquidity provided these rewards can be pretty attractive. But what if there was an even better way?

Our vaults

Enter Eleven Finance, a network of yield optimised vaults, automating much of this process to provide even greater rewards for DeFi participants and liquidity providers. By providing liquidity or single assets to numerous platforms across several blockchains, Eleven Finance users can then stake their LP tokens or single assets at eleven.finance in our vaults. For a small vault fee of 0.1-0.2%, that is only charged on withdrawal of LP tokens or single assets and is fully redistributed between all users of this vault, these vaults earn higher returns through strategies such as automated compounding of token rewards and platform revenue, to re-buy more LP tokens or single assets in the given pool and repeat this process. When users want, they can remove their LP tokens or single assets from out vaults.

As mentioned, our vaults work on several chains and DeFi protocols, wherever providing liquidity or staking assets is incentivised through distributing their own tokens as rewards to these providers Eleven Finance aims to be. We have optimised vaults and tailored strategies that interact with these platforms (often newly released tokens) and will continue to seek community feedback as to the potential for development of new strategies moving forward.