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Liquidity Strategy

What are Strategies?

Strategies allow you to deploy your funds with a single click across the Veno ecosystem. Lean back and earn while the strategy will do the work for you. The first strategy available at launch is the CRO Liquidity Strategy, with more strategies to follow over time.

What is the CRO Liquidity Strategy?

The CRO Liquidity Strategy will maximize your yields for you by investing your deposits into multiple avenues, automatically harvesting rewards and reinvesting them to compound your rewards. It also provides liquidity for LCRO, allowing Veno users to easily trade in and out of LCRO at little slippage and low price impact.

How does the CRO Liquidity Strategy use my funds?

You can deposit CRO/WCRO, LCRO and the Ferro LCRO-CRO-LP. Deposited CRO, WCRO and LCRO into the strategy is added as Liquidity to the Ferro LCRO pool, for which the strategy receives LCRO-CRO-LP tokens. The Strategy deposits the Ferro LCRO-CRO-LP tokens into the Ferro CRO Garden on Veno. The strategy automatically harvests the VNO from the Garden, sells the 25% VNO received for CRO and reinvests that into the strategy. The remaining 75% of VNO are locked into the Reservoir for 8 years, increasing the Watering Boost on the Garden. Additionally it will automatically harvest the Reservoir rewards and reinvest them into itself. For additional compounding effect.

How does CRO Liquidity Strategy earn Yield?

The CRO Liquidity Strategy earns yield from multiple sources, by deploying funds across multiple yield earning mechanisms:
  1. 1.
    CRO staking yield on Veno
  2. 2.
    LCRO-CRO-LP trading tees on Ferro
  3. 3.
    Ferro CRO Garden rewards on Veno
  4. 4.
    Reservoir rewards on Veno

Should I use CRO Liquidity Strategy?

Whether or not it makes sense to use the CRO Liquidity Strategy depends on how much funds you want to deploy, if you have helpers to employ and how much VNO you already have locked. Check out the following table to help you guide your decision:
You should use if...
You should NOT if...
  • You only have a small amount of CRO to spend
  • You have no VNO locked in Fountain or Reservoir
  • You have no NFTs that can work as Helpers
  • You can easily invest large sums of CRO
  • You already have a watering boost from locking VNO in Fountain or Reservoir
  • You can earn additional boost from employing Helpers on the Garden
With larger investments frequent compounding of rewards is more efficient for a single user and it allows to build up a bigger watering boost. You also get to keep all VNO earned after the locking period. Additionally boosting the Garden through helpers has an outsized positive effect on larger Garden deposits.

What happens to the VNO locked in the CRO Liquidity Strategy?

As part of the Gardens functionality, 75% of all VNO harvested are locked. The strategy chooses to lock the Funds in the Reservoir and upgrade the lock for 8 years to maximize its benefits. The locked VNO helps to insure Liquid Stakers on Veno in case of a Drought Event. All VNO locked by the strategy stay locked within the reservoir, even after the locking period ends. The strategy will not withdraw any VNO from the reservoir. This serves as an indirect reward to the existing VNO holders by keeping the locked VNO out of the circulating supply.
The locked VNO actively helps users of the strategy to earn more rewards by
  1. 1.
    Earning additional staking rewards from Reservoir harvests.
  2. 2.
    Increasing Garden rewards by increasing the watering boost

How is the Strategy APY determined?

The strategy earns all the staking rewards and swap fees of the provided LCRO and LCRO-CRO-LP, additionally it earns all the VNO Garden rewards. These full rewards are tracked as part of the Strategy APY. However, given that a large portion of the VNO rewards is locked, not all of that APY is immediately accessible to users to withdraw. Hence, Veno displays also the Immediate APY, which tracks all earnings that are available to users to realize immediately on withdrawal.

How much is the Deposit and Withdrawal Fee on CRO Liquidity Strategies?

There is no fee charged when depositing or withdrawing from the CRO Liquidity Strategy. However if you deposit or withdraw CRO, LCRO, WCRO the liquidity strategy will use these tokens to add or remove liquidity on Ferro for which the Ferro protocol might charge a small fee.

How often can I withdraw from the CRO Liquidity Strategy

You can withdraw anytime and as often as you want from the CRO Liquidity Strategy. Depending on the token you select you will receive a different value of tokens subject to the balance of the underlying Ferro Pool, so make sure to check closely when withdrawing.