Profit-sharing on DeFi: Adamant Vaults

Autocompounding yield farms are a dime a dozen on the Ethereum and Polygon network. On Polygon there are likely hundreds of Goose forks at this point and the number is only growing. Very few autocompounding yield farms stand out from the rest. One does consistently impress me though, due to its unique tokenomics and long-term outlook: Adamant Vaults.

What is Adamant Vaults?

Adamant is an autocompounding yield farm that allows you to stake your liquity pool tokens that are rewarded by another DeFi protocol and autocompounds those into your original deposit. (Learn more about liquidity pools and rewards here.)

Why is Adamant different from other yield farms?

There are a couple of reasons I love Adamant and think it is a great place to deposit your LP tokens. 1. It is constantly adding new vaults and growing in total deposited value. 2. It allows you to autocompound your rewards for zero deposit fees (there is an early withdrawal fee on all vaults if you withdraw within three days of a deposit). 3. You get to share in Adamant’s profit from all other vaults on the site.

Higher APR through profit sharing

Let’s say you have some Qi and MAI from Mai.finance and are interested in farming the liquidity pool for those tokens. You deposit those at Quickswap in a pool and then can get rewarded for staking at Mai.finance (the Qi DAO incentives providing liquidity for that pool and MAI/USDC with their native governance token, Qi).

~400% APR isn’t bad
928.38% APR!

What’s a performance fee?

When you deposit to Adamant you are allowing the protocol to take your liquidity pool tokens and deposit them, as a group, to another protocol that will reward liquidity pool providers. Adamant then automatically harvests the rewards for these deposits, sells them on the market, and deposits those profits back into the liquidity pool deposit. When it does so Adamant applies a 30% performance fee to the profits and converts those to WMATIC. 30% may seem like a big loss of profit, until you realize that 100% of it goes to Addy stakers.

You can see a breakdown of the APR/APY

What is Addy and how do you earn it?

ADDY is the native token of Adamant. You earn ADDY by staking your liquidity pool tokens in a vault. For every 1 ETH of profit, Adamant creates and distributes 450 ADDY tokens to liquidity pool depositors. Those ADDY tokens can then be claimed and vested. Each vested ADDY earns you a certain APR of the profits from Adamant Vaults. Learn more about the tokenomics here.

How do you lock Addy?

Currently, you can lock ADDY as a single asset at Adamant for 3-months. Once that period is over you can withdraw it, and just like fully vested ADDY sell it on the market, stake it, or lock it again.

Claim and vest Addy to share in the fees or lock for even more rewards.

Additional ADDY Rewards for Locking

When you lock ADDY you also receive additional rewards of ADDY. This ADDY reward comes from users that choose to withdraw their vesting ADDY early for a 50% penalty. When they do so the penalty is distributed to those that have staked and locked ADDY.

How can I get started using Adamant?

I’ve got a write-up on how to swap tokens, deposit into a liquidity pool, and start autocompounding your deposits at Adamant here.

  • Risk-averse folks can check out the stablecoin pool with MAI/USDC from the Qi Dao.
  • Don’t want. to bother with an LP deposit? To invest in the Adamant protocol overall buy some ADDY off the market and stake/lock it here.

I swear to God if you tell me to “Slurp up that dipperino!” one more time…