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Vaults
SETTs, also known as Sett Vaults (getting their name from the homes that Badgers do by digging caves and tunnels for their family) or generaly named just vaults, are one the core products of BadgerDAO.
Specifically, they are vaults where users can deposit their assets to earn a yield generated on strategies that follow opportunities presented across different DeFi protocols. After depositing, the smart contract puts those assets to work by executing the selected strategy for the particular sett the user deposited funds on.
Through this, users get an optimized automated yield out of their positions without having to do all the heavy lifting that includes research, understanding of different protocols, gas fees and multiple transactions.
Some vaults are also incentivized with Badger, which means that on top of the underlying APY users can get from the strategies itself they are able to, depending on the specific sett, earn the governance token.

Depositing:

When interacting with the application you'll notice that, if you have an asset that has a vault in the DAO you will be able to deposit. What does depositing do exactly though? This function of the smart contract sends your native tokens to the sett address and gives you in return the b-version of the underlying asset, also called b-tokens, your original tokens are then invested using the underlying strategy of the sett in question.
Keep in mind that if it is your first time interacting with the contract you'll need to do two transactions, first an approval and then the actual deposit. The contract can't take ERC-20 tokens out of your wallet before you approving them first.
What are exactly b-tokens? They are interest bearing tokens that represent a share of the underlying token deposited on the sett, as underlying interest are accrued trough Harvests (read below for more information) the ratio between them and the native token increases, b-tokens are also recognized as "receipt tokens", if at some point you decide to withdraw you will be trading back your b-tokens in your wallet
For example when the Badger sett was launched for the first time the ratio between bBadger and Badger was 1:1, meaning that whenever you deposited or withdrew you would get 1 bBadger per Badger. Now at the time of writing as time has passed and bBadger has accrued interests each bBadger is worth 1.22 Badger, meaning that if you decided to withdraw right now and convert your bBadgers back to Badger you would have earned 22% on your initial deposit - Badger vault has been deprecated and no longer accrues interest but the example still stands and works the same for all the vaults who have auto-compounding.
There are no lock-up periods for depositing on any sett. You are free to withdraw whenever you want.

Interest bearing rewards:

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For more information regarding each individual sett make sure to check the individual sett user guides. ​
  • 0.1% Withdrawal Fee
    • This fee is taken from the total amount withdrawn upon withdraw.
  • 20% Performance Fee (50% to strategists)
    • These fees are taken during harvest and already accounted for in stated ROIs.
  • The BADGER, DIGG and Uniswap LP setts holding BADGER or DIGG on the Etheruem chain have no fees. All BSC setts charge all standard fees.
  • The Sushiswap LP setts all charge 20% of the harvested and staked SUSHI as a performance fee. Those containing BADGER or DIGG tokens have no withdraw fees. WBTC/ETH has the standard 0.5% withdraw fee.
  • In the Harvest.finance Super Sett: Harvest charges a 30% performance fee in exchange for emitted FARM tokens. Badger harvests these for you, and takes 20% of the FARM as a performance fee. Note that badger does not have control over Harvest performance fees and FARM APYs, these are subject to change. Withdraw fees apply.
  • The BADGER, DIGG and Uniswap LP setts holding BADGER or DIGG on the Etheruem chain have no fees. All BSC setts charge all standard fees.
  • The Sushiswap LP setts all charge 20% of the harvested and staked SUSHI as a performance fee. Those containing BADGER or DIGG tokens have no withdraw fees. WBTC/ETH has the standard 0.5% withdraw fee.
  • In the Harvest.finance Super Sett: Harvest charges a 30% performance fee in exchange for emitted FARM tokens. Badger harvests these for you, and takes 20% of the FARM as a performance fee. Note that badger does not have control over Harvest performance fees and FARM APYs, these are subject to change. Withdraw fees apply.
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