💫Compounding Strategy

Halalan Finance provides 2 types of vaults for compounding:

1. Basic Strategy

This vault will compound all returns to the initial liquidity pool. Below is a description of how the basic strategy vault works, with an example as a liquidity provider in the AVAX-USDC pool on TraderJoe as a third-party DEX.

All Joe Tokens generated as rewards are sold in full to purchase AVAX and USDC tokens in equal ratios, and subsequently made into AVAX-USDC LP tokens and deposited back into the LP vault.

2. Advance Strategy

This vault allows users to split the rewards back into the initial liquidity pool and into other tokens of the user's choice and favorite.

Below is a description of how the advance strategy works, with the user as a liquidity provider in the AVAX-USDC pool on TraderJoe as a third-party DEX, with a split of the reward proceeds to the initial liquidity pool and conversion into BTC at the same ratio.

The Joe tokens generated in return are sold 50% to buy AVAX and USDC tokens in the same ratio, and subsequently made into AVAX-USDC LP tokens and deposited back into the LP vault. The remaining 50% is sold to buy BTC. Thus, users are taking profit on the rewards generated from yield farming in BTC.

Halalan finance will provide a advance strategy vault with the conversion of 50% rewards into BTC (as in the example above), ETH and Stablecoins.