You can think of the Value Governance vault just like a traditional savings account in a traditional bank. You deposit your money and then collect interest.
When you put your savings into a traditional bank. The bank will use this money to generate more money, by providing loans, mortgages and investing in hedge funds, etc, etc. Profits go back to to shareholders and eventually drip down to savers.
You can think of the Value Governance Vault as your savings account, just stake your YFV/Value there and collect the interest.
Only with the GOV vault your the stakeholder as well, so you get lots more benefits.
The Governance Vault provides the following benefits
- Collective Farming Strategies – The Gov Vault utilizes all deposited funds for farming/lending strategies across crypto. E.g. The funds will be used to farm on other protocols, rewards go back to stakers.
- 14% of profits from Value Vault strategies will be used to buy VALUE and distributed to Gov Vault stakers
- 33.55% of swap fees on Value Liquid will go to Governance Vault stakers
- Voting power – As a member of the GOV vault you have the power to vote on important decisions and set the direction of the protocol.
- No Fees – Unlike other Vault providers there will be no fees to stake or unstake your tokens from the vault.
The Value DeFi protocol has created a stake and forget system, giving you the best rewards in crypto!
In summary, the Gov Vault enables governance stakers to effectively compound their VALUE from three different sources. Just stake and forget.
Ready to stake? See our staking guide