What is a lending vault?
A lending vault generates yields from fixed-term loans with set borrowing rates. Specifically for USDT, BTC, ETH, and BNB, these loans are provided to our designated market maker, Kronos Research, on WOO X. They supply liquidity within WOO X and execute market-neutral trading strategies where needed. The accrued yields from lending is then redistributed to the users who subscribe to the lending vault.
How is yield calculated for a lending vault?
The effective yield varies depending on the APR, term, and subscription amount. For selected vaults, users who have staked WOO can receive additional rate boosts, increasing their yield. For more information about WOO Staking, please visit the WOO Staking program.
The yield for a lending vault is calculated as follows:
Daily yield accrual = Subscription amount * (base APR + boost APR) / 365
Estimated yield = Subscription amount * (base APR + boost APR) * term / 365
Yield begins to accrue from midnight UTC after successful subscription. For vaults offering additional rate boosts for stakers, changes in the staking tier will affect the boost APR. For example, if you advance to a higher staking tier, your boost APR will increase the next day.
Upon the end of the subscription term (i.e., at maturity), both the subscription principal and the accumulated yield will be returned to the spot wallet.
Auto-reinvest support upon maturity
Auto-reinvest support is available for selected vaults.
- If there is enough available quota, both your principal and the interest accrued from the previous subscription cycle will be automatically reinvested upon maturity.
- If there is not enough available quota, your principal and the interest accrued from the previous subscription cycle will be settled and returned to your Spot Wallet upon maturity.
Can I redeem early before maturity?
Please note that not all lending vaults support early redemption, typically the ones with shorter term do not allow early redemption. Always verify the subscription timeline and details before confirming your subscription.