Vaults

What is a Vault?

A vault is an investment tool that utilizes specific strategies for profit mining. They utilize automation to continuously invest and reinvest the deposited funds, thereby achieving high compound interest. By using Allspark Treasury to compound your profits, you can save thousands of related transactions and their associated gas costs, as well as valuable personal time. The vault will automatically receive rewards, purchase more tokens, and continuously reinvest at a high frequency without the need for manual user operation.

The treasury is the core of the Allspark ecosystem. In the Allspark vault, you will receive more native yield from Blast, whether it is liquidity pool (LP) tokens or single assets. For example, pledging ETH-USDB LP's treasury will result in more ETH-USDB LP over time, effectively increasing your share in the liquidity pool, allowing you to receive increasing fees and rewards.

The unique feature of Allspark is that it combines the characteristics of Blast's native yield. This means that investments in the vault will provide users with native yield from Blast. Therefore, by using Allspark Treasury, users can further increase their investment returns while earning other benefits. This combination can provide users with higher overall returns and a better investment experience.

Although the name "vault" implies that the user's funds are locked in a certain vault in Allspark, in reality, users can withdraw funds from the vault at any time. Allspark also does not own the funds pledged by users in the vault. However, it is usually best to consider the treasury as an investment tool for storing funds in the medium to long term, in order to truly unleash the compound interest effect.

When browsing the vault on the platform, you will see annualized rate of return (APY), which takes into account frequent compound interest rather than just annualized rate of return (APR). You will also see the daily interest percentage and the total investment amount (TVL) of all users in the vault. In addition, you can also see the underlying platform used by the vault as a source of income.