Campfire Whitepaper
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THE PROTOCOL
IMPORTANT INFO
Auto Compounding Vaults
Twilight Pools
Introduction
Campfire's Twilight is a yield optimizer, which enables yield aggregation for holders and users of Campfire protocol. To facilitate automation of the yield farming and the process of compounding, Twilight uses vaults. Twilight also enables a more efficient utilization of gas, as well as other automated processes, and use different yield strategies to help users grow their assets through automation. Thanks to our automation factor in the process of yield generation and compounding, users don't need to manually reinvest their staking rewards, but can rely on automated asset growth by simply making a deposit into a Twilight vault.
With Twilight, users also don’t need to have extensive knowledge of the underlying protocols that support automation and yield optimization, while depositing funds to vaults represents a passive investment strategy. The goal is to increase the initial value of assets deposited by users, similar to how crypto hedge funds work, with minimal involvement on users’ end.
tl;dr
Campfire's Twilight save users time and enable higher yields through more frequent compounding, more efficient gas utilization, and other creative automations. When you deposit into a Vault, your tokens will grow over time. You do not need to manually reinvest in the vaults.
Vault Benefits
1. Simple vs Compound Interest
"Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it" - Einstein
To really maximize your earnings, you need to be compounding your rewards back into your investment. Below is a sample of what compounding will do for you over the course of 1 year.
APR = Simple Interest
APY = Compound Interest
2. Bonus Rewards
Campfire vaults allow you to earn additional bonus yield/rewards in the form of Campfire tokens! This will allow us to incentivize usage of our vaults and attract more users to our protocol.
3. Auto-Compounding
Our vaults auto-compound your tokens for you. And because the gas fees are quite low on Binance Smart Chain, we are able compound your rewards multiple times EVERYDAY!
Normally you have to run through following transactions to compound your farm investment. I will use the BNB/BUSD farm on PancakeSwap as an example:
- 1.Go to PancakeSwap
- 2.Connect wallet
- 3.Harvest rewards, receiving CAKE
- 4.Sell 1/2 of harvested CAKE for BNB
- 5.Sell 1/2 of harvested CAKE for BUSD
- 6.Use the new BNB and BUSD to create the BNB/BUSD LP token
- 7.Deposit the BNB/BUSD LP token back into the farm
- 8.Handle the leftover dust from creating the LP token
Now to really take full advantage of compound interest, repeat this over 10 times a day...
Or just let the Campfire Auto-Compounding vaults do this for you!
4. Less Gas Fees
Vaulting with Campfire will cost you much less in gas fees compared to manually compounding. This is because of how we configure our smart contracts and the automated system we have in place that allows for smart & efficient gas utilization.
5. Less Taxes
In some countries, every single transaction is considered a taxable event. This is a nightmare for yield farmers, especially if you are compounding (see the steps to compound in the section above).
However, with vaults you only have to account for the deposit and withdraw transactions to and from the vault, and the vault does the rest in smart contracts. This massively simplifies tax accounting for DEFI.
Burst
Burst is a contract that drastically simplifies the process of creating liquidity pairs and staking them into our vaults. In order to stake in our vaults (or any vaults) you first need to create the LP token and then stake it. Bursting handles all of that for you!
Bursting replaces up to 9 transactions! As well as removing the need to navigate to multiple web pages on multiple sites.
The old workflow:
- 1.Go to FireSwap or PancakeSwap trading interface
- 1.Buy 1st asset (and approve the trading token if needed)
- 2.Buy 2nd asset (and approve the trading token if needed)
- 2.Go to FireSwap or PancakeSwap pooling interface
- 1.Approve both tokens for FireSwap/PancakeSwap
- 2.Create LP token
- 3.Come back to the Twilight page
- 1.Approve vault to spend LP token
- 2.Deposit LP tokens
The new workflow:
- 1.Deposit BNB into the burster and it will automagically buy the underlying LP tokens and stake them in the desired Twilight vault.
Bursting fees are 0.1%
Initial Vaults Upon Launch
At launch, we will only have 11 initial auto-compounding vaults. There will be more vaults added as the council votes them in
Vault ID
Vault
Platform
Contract
C1
CAMPFIRE<>BNB
FireSwap
Link
C2
CAMPFIRE<>BUSD
FireSwap
Link
C3
CAKE
PancakeSwap
Link
C4
CAKE<>BNB
PancakeSwap
Link
C5
BNB<>BUSD
PancakeSwap
Link
C6
BANANA
ApeSwap
Link
C7
BANANA<>BNB
ApeSwap
Link
C8
BANANA<>BUSD
ApeSwap
Link
C9
BSW
BiSwap
Link
C10
BSW<>BNB
BiSwap
Link
C11
BSW<>USDT
BiSwap
Link
Vault Fees
- Deposit Fee - 0%
- Withdrawal Fee - 0.2% to the treasury for development costs
- *Reward Fees - 4%
- Controller Fee: 0.4% to the deployer to pay for compounding gas fees
- Dev Fee: 0.6% to the treasury for development costs
- Treasury Fee: 3.6% to the treasury
*Reward fees are only applied on the farming rewards, not on your initial investment
Terminology
Yield explained:
- Farm APY: Farm’s yield when auto-compounded.
- Daily Farm APY: Daily auto-compounded APY
- Bonus APY: Yield you receive as a bonus to Farm APY in form of CAMPFIRE token
- Daily Bonus APY: Daily auto-compounded APY bonus
- Total APY: Farm APY and Bonus APY combined
- Total daily APY: Total yield you receive daily
Buttons explained:
- Deposit: Your tokens are deposited to the vault and start auto-compounding.
- Harvest: Your Bonus APY in form of CAMPFIRE tokens need to be harvested manually
General terms:
- TVL: Total Value Locked
- Weight: Proportion of CAMPFIRE emissions compared to all Twilight vaults
Last modified 6mo ago