Vaults

How Dot.Finance Maximizes Yields

PancakeSwap (PCS) is the highest volume Decentralized Exchange (DEX) on BSC and one of the top platforms in the space. We’re leveraging these strengths and adding to them to enhance the yield farming experience.

Normally, after providing liquidity to a pool on PCS and receiving LP tokens, you can stake those to earn CAKE. The CAKE rewards incentivize people to add liquidity to the PSC pools but it takes a little more time and effort from the farmers. That CAKE can be converted to more LP tokens for compounding returns, or can be staked in pools to earn other tokens. PCS mostly doesn’t have auto-compounding pools or farms, so funds have to be manually converted and restaked.

Optimal compounding can be almost magical in how much it increases your returns. For example, if you were to auto-compound once a day for a year, the 40% APR from PCS becomes 49%. That’s almost a 25% increase in returns! Keeping your funds only on PCS is essentially leaving money on the table.

Our yield aggregator auto-compounds your CAKE yields for you by converting them to LP tokens then staking them. Using our platform means the smart contracts will compound your yields at the optimal rate and entitle you to a share of our performance fee - the Pink Distribution.

When you harvest your yields (collect rewards), we give you 70% of your earnings in LP tokens, and the other 30% we calculate their worth in BNB then issue our native PINK tokens based on the PINK/BNB mint ratio. This is based only on your profits, your principal remains untouched.

The 30% for which we minted PINK is the performance fee that goes to the PINK stakers (which will be explained below). Because we issue PINK instead, and PINK is unlikely to go under the IDO price, you will get more yields with the PINK Distribution as compared to the value of receiving just BNB.

Getting Started

All you have to do to start farming the sweet yields is head over to PancakeSwap, connect your wallet, and provide liquidity for one of the pools supported in our farms. Once you get your LP tokens for this, head over to Dot.Finance and stake the tokens to start farming. With our auto-compounding, you can set it and forget it, you don’t have to babysit your tokens to get the best returns.