Yield Optimizer JetFuel Finance Launches Initial Set of Vaults

JetFuel continues to apply pressure in the early stages of its development, introducing the latest piece of the JetFuel.Fi ecosystem, JetFuel Vaults.

By
Goon Trades
on
January 6, 2021
Category:
Project Insight

JetFuel Vaults Now Available

JetFuel continues to apply pressure in the early stages of its development. After a successful launch of FUEL staking and their governance token, JETS, the team is still furthering development. As promised, JetFuel vaults are now live, introducing the latest piece of the JetFuel.Fi ecosystem. The JetFuel team has also wrapped up their latest partnership with Billion Happiness Club, providing rewards for both BHC and FUEL holders. 

Vaults & Yield Optimization

JetFuel’s primary function serves as a yield optimizer, but the team at JetFuel.Fi have innovated a novel twist on their vaults and strategies. The following is an excerpt from: Jetfuel Project Review: A Fair Launch Yield Aggregator & Farming Protocol, explaining the process of JetFuel.Fi’s vault system.

Following the suite of most yield aggregators, Jetfuel uses a vault system to automate user yield farming. Vaults are smart contracts capable of using assets as liquidity, providing assets as collateral for others, managing collateral to reduce odds of liquidation, and using assets to generate a yield and compound profits.

Here is a quick example of the FUEL-BNB LP Fuel Vault

1. User deposits FUEL-BNB FLIP tokens into the JETFUEL Vault and receives flyJetFuelPancakeLP-FUEL-BNB tokens.

2. The smart contract deposits the flip tokens into the Jetfuel FUEL-BNB Farm

3. Every 4 hours, the contract harvests the returns generated.

4. 94% of the harvest is turned into more FUEL-BNB LP and redeposited into the farm, compounding the users’ LP tokens.

5. 4% of the harvest will be distributed to JETS holders. Strategies using other harvest tokens like Cake or Drugs will use 4% of the harvest to market buy FUEL and the FUEL will be distrubed to JETS. 

6. 1.5% is sent to the Jetfuel Treasury.

7. 0.5% is rewarded to the user as WBNB to call the harvest function early.


Following the launch, the JetFuel team plans to release the following vaults:


What Are JETS? And GFORCE!?

Jets are obtained when users stake FUEL, but it is based on the Fuel percentage of the staking pool. This means that the ratio is not always 1:1. The following equation is used to calculate the true ratio.    

(Amount of FUEL to Stake) * (Total JETS) / (totalFuel in staking). 

This system rewards users who stake their FUEL early on, receiving a larger percentage of the rewards that JETS accrue.

Users who stake FUEL to receive JETS will be subject to earning the following rewards:

  1. FUEL Rewards from the Staking Pool
  2. Fuel rewards from the vaults.
  3. GFORCE passive yield rewards
  4. JETS Staking Pool opportunities.

The following flow map displays how rewards are accrued for JETS holders:

 

 Currently JETS holders are exposed to three of the four rewards, JETS staking, vault rewards, and FUEL staking pools. On top of this the 1% transaction tax is still allocated to JETS holders while the GFORCE token is being developed.

Further down the roadmap, users will be able to earn GFORCE, a passive yield token, which split’s the transaction tax between GFORCE and JETS holders, making JETS holders automatically GFORCE holders. Overall, users who opt to stake FUEL in return for JETS expose themselves to four different revenue streams from a single token, which can be viewed in the flowchart.


New Staking UI

On top of the BHC rewards for Jets Staking the JetFuel team has pushed out a new frontend. This UI features a JETS breakdown informing users where they have their JETS allocated.

Users will be able to view:

  • JETS Available for Staking
  • JETS in Staking Pools
  • JETS in Fuel Pool
  • Total JETS


This UI also features hyperlinks allowing users to easily navigate the JetFuel.Fi platform

FUEL X BHC

For those who were unaware, the teams at both JetFuel.FI and Billion Happiness were able to reach an agreement that allowed users to earn both FUEL or BHC, respectively. While these rewards are no longer available similar mechanics will be used in future partnerships.

Users earned these rewards by staking JETS and/or providing a BCH/BNB LP to StreetSwap. Users can still earn FUEL rewards through providing liquidity to the BHC/BNB LP on Streetswap and depositing those LP’s to the Fuel Depot. Currently, 2.8% of FUEL block rewards have been allocated to the respective liquidity providers. At a block reward of .0413, there are now ~1,200 FUEL minted daily, 33 of which are allocated to BHC/BNB LPs.


Now for FUEL/JETS holders 

On the other side of the agreement, there was a BHC allocation for JETS staking. Starting on 12/23, users began earning from a 1000 BHC pool that was distributed over a one week period. This is no longer available, but users can still stake JETS to earn FUEL rewards. Moving forward, we can expect similar partnerships which allow JETS holders to earn unique tokens.


Concluding Thoughts

It has become apparent that JetFuel is focused on future innovations on the BSC. It is just over three weeks of JetFuel being live, and they have introduced Fuel rewards and Jet staking, vaulting them to a  TVL of about seven million USD. The team has not slowed down, creating more partnerships as the developer team finalizes the Vaults. JetFuel is rapidly expanding its presence in the BSC community, making it a contender as the largest yield optimizer on the BSC. JetFuel has only just begun its developments and does not show any signs of slowing down. The launch of vaults will provide a significantly larger use-case to the entire JetFuel.Fi ecosystem, challenging the market share of other prominent yield aggregators.

It is still crucial that individuals make financial decisions based on their behalf or consult a professional financial advisor at the end of the day.


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Disclaimer: The team at Jetfuel.Finance has funded the costs of this article.


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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.