Flux Compounder
Fluxtra’s Auto-Compounding LP Solution streamlines liquidity provision by automatically reinvesting rewards from decentralized exchanges like Astroport. Users receive ftOM-LP tokens, which remain liquid and can be utilized in other Fluxtra products, such as the Flux Extractor.
How It Works
User Process
Users deposit funds into the Fluxtra Compounder Farm, which has a dedicated smart contract and a corresponding ftOM-LP token for each incentivized pool.
The Fluxtra Zapper automatically converts deposits into the appropriate LP token.
The LP tokens are then staked to earn rewards, including dual incentives where applicable.
Automated Reward Compounding
A controller bot compounds rewards daily, automatically claiming and reinvesting them.
A performance fee is deducted and sent to the protocol's treasury and ftOM holders.
Remaining rewards are converted into LP tokens and re-staked, increasing the value of ftOM-LP over time.
On a weekly basis, collected fees are converted into ftOM and distributed to the treasury and ftOM holders.
Deposit Options
Users can deposit into the Fluxtra Compounder in multiple ways:
Zap: Allows deposits using any supported token, which is automatically converted into the correct LP ratio.
Direct Token Deposit: Users can deposit tokens from the liquidity pool while maintaining the original ratio or opting for single-asset deposits with auto-balancing.
LP Token Deposit: Users who already hold an Astroport LP token can directly stake it in Fluxtra Compounder.
Staked LP Migration: If a user has an LP token staked in Astroport, they can withdraw and directly move it to Fluxtra’s system.
Advantages of Using the Fluxtra Compounder
Auto-Compounding Efficiency: Rewards are automatically reinvested, increasing the value of ftOM-LP.
DeFi Utility: ftOM-LP can be used as collateral for loans, transferred between wallets, or utilized in the AMP Extractor.
Tax Optimization: Since rewards accumulate within the LP pool rather than being distributed directly, it may be more tax-efficient in certain jurisdictions.
Single-Asset Entry: Users can deposit any supported token, and Fluxtra Zapper will automatically convert it to the necessary LP composition.
Fee Structure
Fluxtra’s model ensures fair reward distribution while maintaining accessibility:
For Fluxtra’s Native LP Staking:
Deposit Fee: 0%
Performance Fee:
2.5% to ftOM holders
2.5% to the Protocol Treasury
Withdrawal Fee: 0%
Considerations & Risks
While Fluxtra follows best security practices, smart contract vulnerabilities and market risks remain inherent to DeFi. Users should carefully assess risks before participating.
By using the Fluxtra Compounder, liquidity providers can maximize their earnings while maintaining flexibility and efficiency within the DeFi ecosystem. 🚀
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