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The Harvest Function and Fees
You may have noticed that part of the inherent value of the ELE token is the value that is given to ELE stakers when a compounding or harvest event occurs. Each of our vault contracts has another contract or strategy interacting with it. As users add LP tokens to a particular vault, rewards begin to accrue. If we use the WEX-BNB example again, the WEX-BNB LP's that we staked in the Eleven Finance vault are automatically added to all others and deposited to farm on WaulSwap. Here they are gaining $WEX rewards. When the harvest function is called, the contract will take all the pending $WEX rewards, sell 50% of them, buy BNB with this and buld more wLPs, then re-add this to the total number of WEX-BNB wLPs in the Eleven Finance vault. These newly gained wLP's are shared proportionally to everyone in the pool - except for a 3.5% harvesting fee on these rewards. This 3.5% share of $WEX rewards is further distributed as follows:
Where the following harvest distribution occurs:
41.67% of this is used to buyback burn ELE
38.89% is used to buyback and burn WaultX
2.78% of this is used to buyback ELE and distribute this (in the form of E11 to existing E11 holders)
8.33% of this as a developer fee
8.33% of this as a controller fee (this is a fee paid to the bot that automatically call the harvest function of a vault contract when this fee covers the gas cost to call).
Other vaults, that don't use WaultSwap have a 2.2% harvest fee on rewards. This is broken down as follows:
70.83% of this is used to buyback burn ELE
4.17% of this is used to buyback ELE and distribute this (in the form of E11 to existing E11 holders)
12.5% of this as a developer fee
12.5% of this as a controller fee (this is a fee paid to the bot that automatically call the harvest function of a vault contract when this fee covers the gas cost to call).
So you might be asking yourself, what triggers a harvest and what incentive is there to call this and keep the compounding happening. Previously this was user driven, however with the launch of PancakeSwap V2 pools and the need to re-launch our vault contracts we have taken the opportunity to fully automate this process. A bot will now optimise compounding calls, by assessing rewards accrued and calling as a result. This will see high volume, high reward vaults called with more frequency.
Last modified 6mo ago
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