• Boosted Vaults

Boosted Vaults on Davos Protocol

What is a Vault in DeFi

A DeFi vault is an automated investment strategy that optimizes the return on users’ funds. By aggregating users' funds, vaults decrease transaction costs and optimize returns for all participants. It’s like a service that manages your tokens to maximize your investment returns with simplicity. Vaults aim to automate the investment process, making it easier for users to achieve attractive returns.

What is a Boosted Vault

A boosted vault is a type of DeFi vault that offers additional rewards beyond the regular returns. Typically, these rewards are temporary and provided by third parties. However, Davos offers boosted vaults that provide DUSD Boosted Rewards on top of frequent rewards for as long as your crypto assets remain locked in the vault. This means there is no time limit for earning the boost, making it a valuable and long-term investment opportunity.

How Davos Protocols Boosted Vaults Compounds User's Returns

The Davos Protocol generates compounding returns for users through three mechanisms: swap fees from vault pool usage, farming rewards for LP token staking, and boosted DUSD rewards from the Revenue Pool. Davos' Boosted Vaults reinvest rewards for higher compound interest, leading to increased growth of users' assets and profits as the APY applies to a larger share over time.

What Boosted Vaults Does Davos Protocol Offer?

Davos Protocol has formed a strategic partnership with Gamma Strategies to provide users with optimized boosted vaults. Gamma’s tactics maximize capital efficiency, reduce emission costs, or maintain consistent in-range liquidity with low price impact.

Davos and Gamma have launched two Boosted Vaults — on Uniswap v3 and Quickswap v3 —, both offering boosted rewards.