If you had been using THORChain, you would have known earlier that it has a Savers Vault that went live in November last year.
What are Savers Vault
It is a new, permission-less, open-source and decentralized self-custody solution for users to provide single-asset liquidity on THORChain, allowing them to earn yield on native assets without price exposure to any other assets including RUNE. (Source)
In simple words, they are single-asset staking pools where the yield earned is the same native asset that you have staked. Deposit ETH and you earn ETH. Stake ATOM and you earn ATOM.
Native Assets Available on the Savers Vault
- Bitcoin (BTC)
- Ether (ETH)
- Binance Coin (BNB)
- Bitcoin Cash (BCH)
- Dogecoin (DOGE)
- Litecoin (LTC)
- Cosmos (ATOM)
- Avalanche (AVAX)
Features
- Single-asset liquidity
- Earn yield the same as deposited asset
- No need to wrap assets
- No impermanent loss risk or price exposure to multiple assets
- Users maintain full control of their keys so the can withdraw their assets any time.
- Variable APRs because the yields are dependent on the swap fees etc.
Risks
The vaults are not risk-free and there are certain risks as follows:
Temporary Chain Halt
The chain can temporarily stop trading for blockchains individually or collectively if there's any issue is detected.Slip-Based Fee Upon Entry and Exit
Users are charged a slippage fee when entering or exiting a Savers Vault.Severe Drawdown of ASSET Depth in THORChain Pools
Savers may pay higher exit fees than their entry fees if the asset depths are significantly lower than when they entered the vault.Network Loss of Funds
Savers can lose their funds when there's any network exploits.
You can read more information and explanations here.
How to Enter the Savers Vault via THORSwap Earn
Go to https://app.thorswap.finance/earn, select the chain or network and the wallet you want to use and then click "Connect Wallet."
It will bring you to the list of assets on the Savers vault. Select which crypto you want to deposit, type the amount on the field and click on "Deposit" then confirm the transaction.
NOTE: Pay attention to the slippage fee. The higher amount you deposit, the higher the fee.
You can then check your yields, add more or withdraw your liquidity through THORSwap Earn and clicking on "My Positions."
Additional Info
The details on the Savers Cap (individual assets) and other data can be viewed on THORFi via the THORChain Explorer. At the time of this writing, there are a total of 2045 Savers and over $11M worth of assets and 61% of the Savers Cap has been filled, Bitcoin leading the liquidity with 444BTC or $7.66 million worth and less than 14% of its cap remaining.
More information about the vaults can be found on this publication on Medium.
Personal Thoughts
The Savers Vault is good for those who are just holding their assets for long term and not doing anything with them. Personally, I consider this as a better and less-risky alternative for some of my idle crypto assets than keeping them on centralized exchanges. It's another way to slowly grow my holdings in their native form since there is no need to wrap them.
Do bear in mind that as mentioned above, there are risks associated with this type of investment.
Disclaimer: None of these are financial or investment advice. DYOR
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Screencaptures via THORSwap and THORFi. No copyright infringement intended. 10012023/09:20ph