POSI vault is magic. Until you have tested it you may never understand. It’s the fastest way to earn MILLIONs of dollars in 1 year. And I’m not exaggerating.
If you have never see auto compounding at work, here’s the best form of it in POSI money magic vault. I’m going to show you how it works and help you follow my guide to turn it on for yourself.
The first thing to understand about POSI vault is that it works by compounding your earnings. That’s how the magic starts.
This means if you are harvesting your earnings you won’t benefit from the vault auto compounding power. But if you hold your profit in the vault, it will turn to a million some day. I though I should let you in on this earlier so you don’t get wrong idea and start spending like you won the lottery.
How POSI Vault Works
The best way to understand how POSI vaults work is to compare it with how the normal farm LP staking works. You start by swapping either BUSD or BNB to POSI. Then, you pair the two tokens to create and LP token.
You now go on to stake the LP token into the pool. As you earn, you harvest your earnings and repeat the same prices again to reinvest your earnings in other to compound it.
Now imagine all the above process can be done just by 1 single click. That’s the power of POSI Vault.
Benefits Of POSI Vault
POSI Vault Reward Currency
Each of the POSI vault is built on a particular Cryptocurrency. The same way the rewards are calculated. For example, BUSD vault calculates your rewards in BUSD, which is shown at the top of each vault display.
POSI currently has 2 vaults:
However, to harvest your rewards you will have 2 options of cryptocurrencies to choose from. The BUSD Vault gives you option to harvest in BUSD or POSI. The same with BNB vault – with option to harvest in BNB or POSI.
What’s POSI Auto Compounding?
Auto compounding is the most important feature of the POSI vault. The vault is not actually different from POSI Farm. They both share the same features – providing liquidity for the POSI ecosystem.
But auto compounding is what separates the POSI vault from POSI Farm. The vault gives you the advantage to compound your earnings automatically. And saves you the high cost of manually compounding your rewards each time you chose to.
The work of POSI auto compounding feature is best described in two ways:
How Compound Interest Work
POSI Auto compounding interest is easy to understand. Your rewards are compounded and included as part of your vault pool. That means you also earn rewards on your already earned rewards.
That increases your earning in the POSI vaults after each 7 hours compound circle. The compounding power of POSI vault is what makes it truly special.
For a newbie, if you multiply how much you currently have staked in the pool by the monthly APY percent, it will give you the reward for one month.
Compound interest turns a simple percentage Earning into a super charged earnings. In POSI vault you can earn more with $300 invested in a month than with $1,000 invested in the POSI farm.
What’s POSI Annual Percentage Yield (APY)?
Another attractive feature of the vault is the high APY. POSI vault rewards are calculated in APY. Annual Percentage Yield (APY) is often confused with Annual Percentage Return (APR). Although, they are both similar but not exactly the same.
While they are both Percentage earnings calculation, APY calculates with annual compound interest earnings. But APR is only calculated in exact percentage returns without compound interest.
So, POSI vaults earns helps you earn more by auto compounding your rewards to earn you more.
Furthermore, the daily and weekly income is showing in $ while its actually calculated in POSI. So if a $100 amount is giving a daily income of $2.19, its actually 2.19 POSI per day.
What’s POSI Vault Impermanent Loss?
POSI vaults is not without its risk. The very common one is LP pool impermanent loss. Just like any other liquidity pool, POSI vault suffers the same loss.
You need to understand impermanent loss to know how it affects your Investment in POSI vault. Liquidity pool farming requires a pair of 2 tokens. These pair must constantly remain at the same equivalent value.
But, there’s bound to be price fluctuations. And since both tokens may not have to experience price increase or decrease at the same time, one token must makeup the value of the other when it decreases.
Even if you staked BUSD you still provide liquidity pair with POSI. So, your BUSD (assuming its $1,000), will be split into POSI and BUSD and wrapped into LP tokens automatically by the vault auto mechanism.
When the price of POSI goes down, then you suffer impermanent loss and your overall value of your staked LP (BUSD) will decrease as well. It’s called impermanent loss because it can also be reversed when POSI price goes up.
But at the time POSI price is lower the value of your LP in the vault reduces as well, including your earning. During that time the value of your LP is lower you are suffering some loses.
How to Use POSI Vault
The vault simplified everything about staking in POSI liquidity pool. In a simple clicks you can perform all the 4 steps, from creating an LP token to depositing it in the pool.
Note that Staking LP into the vault requires BUSD for BUSD vault, and BNB for BNB vault. The vault will now automatically buy POSI with half of the deposited funds to pair into an LP token.
This process is done for you automatically. All you are required to do is to deposit the token of the vault you want to stake into and the vault will perform the rest of the task of pairing the token with PODI, creating the LP token and staking it in the pool for you.
How to Migrate Your LP Tokens
If you already have POSI LP tokens you can also migrate them. That would mean that you have the corresponding LP to the vault you want stake into. POSI allows BUSD and BNB vaults. So, you would need POSI-BUSD LP or POSI-BNB LP to migrate to the vault.
Here’s what to do. Go to vaults, click on more (below the vault you want to migrate to), click on migrate then input the amount of the LP. You might need to first withdraw your LP tokens from the current farm before you can migrate.
How to Harvest From POSI Vault
Your earnings from the vault can be harvested once you have accumulated some earnings. But, the harvest function doesn’t start to work until after the vault has auto compounded your first earning.
That means your first harvest can only be after the first 7 hours of staking LP in the pool. And you also have a choice of which token to harvest.
Each vault would present you the option to harvest your rewards in any of the LP pair. For example, you can harvest in POSI or BUSD from the BUSD vault.
Vault Harvest Lockup Time
The vault has a feature that locks up your earnings till after the first 7 hours or after the first auto compound. Until this happens you cannot be able to harvest your earnings.
It’s only for 7 hours. So that shouldn’t be a problem. 7 hours is. To a long time to actually have earned so much to be in a hurry to harvest – unless you have a million dollar LP in the vault.
What’s POSI Bounty?
The auto compounding feature is not really automatic. To auto compound every 7 hours, someone has to trigger the compounding feature manually. The POSI bounty provides that manual trigger.
POSI bounty is a reward for who ever gets to first trigger the auto-compound for the vault by clicking and successfully claiming the bounty. After each claim the bounty restarts the countdown for another 7 hours.
In order to make the auto compound actually working, you have to trigger the function on the smart contract. This function can be triggered every 7h but must be performed manually.
So, the lucky one who manage to claim that bounty triggers the compound function of the contract and gets rewarded with POSI for doing the job.
POSI Farm Versus Vault – Which 1 is More Profitable?
If you are looking to invest in POSI liquidity pool, which one of the farms is better – POSI farms or POSI vault? This question is growing concern among investors right now. They are confused about which one to go for, especially those who are already in the farming pool but wants to migrate.
Before you move your LP token from the farms to the vaults, you need to know what advantages and disadvantages are there for you. Let’s look at these two opportunities from Position Exchange website to pick the one that’s more profitable for you.
Although both of them are the same product, but certain features differentiates them from each other. The best way to differentiate the farm and the vault is to say the farm is manual and the vault is automatic.
How POSI Farm Work
POSI Farm allows investors to stake LP token and earn rewards. The pool requires a pair of either POSI-BUSD or POSI-BNB to create LP token to stake in the pool.
The rewards are calculated based on defined percentages and credited to the farm account as being generated per seconds.
How POSI Vault Work
POSI Vault allows investors to stake LP token to earn rewards. This vault pool can do so much for you than you can get from the normal POSI farm.
Unlike the normal farm, the vault does somethings for you. In normal farm you will need to create the LP token yourself, and if you need to reinvest your earnings, it’s also done manually by you.
Huge Benefits of POSI Vault
If you have invested in POSI Farm you will find POSI Vault more profitable because of the auto compounding feature. You will be enjoying some automatic services – like do-it-for-you kind of features.
POSI vault does everything for you automatically. Even your rewards are reinvested for you 2 to 3 times in a day. The power of compound interest is multiplied on your vault investment.
If you are wondering between the farm and Vault where to stake your LP token, the vault is the ultimate advantage.
POSI vault is the real deal for digital Farmers. If you understand the power of compound interest you won’t miss investing in POSI vault. But you have to obey the law of compound interest earnings.
To earn big with POSI auto compound you have to avoid harvesting your rewards for a period of time to accumulate your target earning.
It’s better to set quarterly or annual target. Assuming you want to compound for the next 3 or 6 or 12 months before you harvest. That means you are compounding all your earnings for the period you chose.