💰Fish Funds

💰 Fish Funds

Fish Funds (FF) are a special kind of vault. They are used to manage the payout for Fish Stakers, and have their own distinct benefits.

The old FISH Burning Vaults are now Fish Funds! Check out the changes below. 🧐

Here's how it normally works: ☝🐱

Say we have $10,000 in fees to reward. Most other yield farms would just take a portion ($1,000, for example), to buy or supply other types of tokens to allow you to stake their native (reward) token. This encourages people to HODL the token, reducing sell pressure on the native token.

Eventually, there won't be any more fees to be gathered unless there is continuous and sustained fees from deposits. The price of the token will gradually trickle down to zero, as there is now no price incentive to keep the native token. 😿

What does Polycat do differently?

Previously we had the Burning Vaults that burnt $FISH with 100% of their yields.

Imagine $3,000,000 is deposited into the burning vault with a daily ROI% of 0.3%, this would result in $9,000 worth of FISH being burned every day, on every compound. This $9,000 per day will become staking rewards 💰.

The $2.91m Burning Vault is now the Dividend Vault, where you can single-stake $FISH to earn $PAW that is market-bought, this is to support the sustainability of the platform & ecosystem.

When you Harvest from the $FISH 💰, the $PAW rewards are unvested: they're instantly sent to your wallet! 😽👌🐾

How do Fish Funds grow?

All regular vaults (non-💰 and non-burning) have a 4.5% performance fee on profits. This performance fee is used to add funds to the Fish Funds.

Polycat's first governance vote decided how the normal vaults uses this performance fee in this Snapshot vote.