Ready for mainnet?— How to deposit on Vyper Vaults

It feels like yesterday that we were uploading the vyper-vault program on devnet. After the announcement on Twitter, we have seen lot of users testing our devnet app, received lot of feedbacks and fixed a lot of components, so first of all thank you for your suggestions!

Vyper Vaults — the first application layer built on Vyper Protocol — enable users to farm while being protected from impermanent loss or to do leveraged farming without risk of liquidations.

In this brief article we will guide you through the necessary steps to interact with Vyper Vaults.

  1. Head over to https://vaults.vyperprotocol.io and pick your preferred vault according to the yield you want to receive and the assets you own. You can choose to deposit into Vaults with protection against Impermanent Loss (Protected) or selling such protection (Leveraged).
  2. The Protected side gives up a part of the yield in exchange for protection from Impermanent Loss (IL). The Leveraged side has increased exposure to IL and earns an enhanced yield as compensation.
Vyper Vault home page

3. Connect your wallet. Input the amount you want to deposit into the box outlined in green below and — once you read through the summary — click on “Deposit” (if your wallet is not connected, the deposit button is not visible).

The Deposit page of Vyper Vaults

Important — When you deposit tokens into Vyper Vault you are depositing LP tokens. An LP token is a token you receive when you provide liquidity to a yield farming platform such as Orca or Raydium. For example, if you add SOL and USDC into the Raydium SOL-USDC pool, you receive back Raydium SOL-USDC LP tokens. These LP tokens represents your position. Be aware that each Platform has its own LP tokens, meaning that if you pick a RAYDIUM Vault, you can only deposit LP tokens from Raydium.

Until the epoch starts, your deposits will not be protected from IL (for the Protected) or earn additional yield (for the Leveraged). When the epoch actually starts, your LP tokens will be converted to Vault Tokens and start earning extra yields or being protected.

That’s it, you did it. You are now using Vyper Vaults, cool innit?

We have written a very extensive documentation on the actual nitty gritty of the underlying exchange of Protection payment and Imperament Loss, so if you have other questions or are interested in finding out more, check out our Docs and FAQ.

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Vyper Protocol

A DeFi primitive allowing users to create, trade, and settle any kind of on-chain derivatives 🐍 vyperprotocol.io