SushiSwap Liquidity Pool Tokens
Last updated
Last updated
OnX alpha vaults have been initially created to support liquidity to SushiSwap.
Yield aggregators (vaults) can be designed in several ways and very often, yield farming strategies involve benefiting from farming reward opportunities, sell the farmed tokens, and reinvest in other yield farming opportunities to generate compounding effect to vaults' capital providers.
OnX Finance designed its OnX alpha vaults in a way to support decentralized exchanges by making it easier for liquidity providers to farm their Liquidity Pool tokens, and systematically stake their farmed rewards, instead of systematically selling the farmed rewards.
To further incentivize usage of OnX alpha vaults and liquidity on Sushiswap, OnX Finance adds farming rewards on some vault strategies, and harvests the rewards periodically to stake the farmed rewards (Sushi + OnX), incentivizing as such vault capital providers to use vaults for the long-term as the reinvestment process (staking farmed tokens) is being automated by the vault.