Rewards

Welcome to the engine room of maxAPY's reward system.

If you're keen to understand how we turn your deposits into a yield-generating powerhouse, you're in the right place.

Let's break it down.

1. How Rewards Are Calculated

The secret sauce of maxAPY's reward system is our multi-protocol integration. Here's how it works:

• Asset Deployment: When you deposit ETH or USDC, we convert it into yield-bearing assets across multiple protocols, depositing to the optimal strategies across the DeFi universe.

• Continuous Optimization: Our algorithms constantly rebalance these assets across various strategies to maximize returns.

• Tokenization: You receive maxETH or maxUSDC tokens in return for your deposit. These represent your share of the total pool.

The maxToken Mechanism:

• Each maxToken (e.g., maxETH) represents a proportional share of the total assets in the corresponding strategy pool.

• As rewards are harvested and reinvested, the value of each maxToken increases relative to the underlying asset.

• This means your maxTokens are constantly growing in value, even if the number of tokens remains the same.

For example:

1. You deposit 1 ETH and receive 1 maxETH.

2. The strategy earns a 10% yield over time.

3. Your 1 maxETH can now be redeemed for 1.1 ETH.

2. Harvesting and Claiming Rewards

Don't worry, you don't need to wake up at the crack of dawn like some old-timey farmer to harvest these rewards. Our DeFi robot butler (aka our smart contracts) handles all the heavy lifting:

• Automatic Harvesting: Our system regularly harvests yields from various protocols.

• Reinvestment: These yields are automatically reinvested, compounding your returns.

• Real-time Value Accrual: The value of your maxTokens increases in real-time as rewards are harvested and reinvested.

When you're ready to cash out:

1. Hit the "Withdraw" button on our platform.

2. Choose how many maxTokens you want to redeem.

3. Receive your original tokens plus all accumulated rewards.

The withdrawal process converts your maxTokens back into the underlying asset at the current exchange rate, which includes all your earned rewards. So easy even your grandma could do it.

3. Factors Influencing Rewards

Now, you gotta understand, this ain't a guaranteed get-rich-quick scheme. The yield you can earn on your assets depends on a number of factors:

1. Strategy Performance:

   • Different strategies have varying risk/reward profiles.

   • We continually adjust strategy allocations based on performance.

   • Higher-performing strategies naturally lead to better rewards.

2. Deposit Amount:

   • Larger deposits generally earn more rewards due to economies of scale in certain strategies.

   • Some high-yield opportunities have minimum deposit requirements, which pooled funds can access.

3. Deposit Duration:

   • Longer deposit periods benefit from the power of compounding.

   • Some strategies have increasing rewards over time. However, maxAPY does NOT work with strategies that apply any kind of lock-up period.

4. Market Conditions:

   • DeFi yields can fluctuate based on market supply and demand.

   • Factors like trading volume, liquidity, and token prices all play a role.

   • Our algorithms adjust strategies in real-time to optimize for current conditions.

5. Gas Costs:

   • While not directly affecting rewards, gas costs for strategy shifts can impact net returns.

   • We optimize for gas efficiency to maximize net yields.

6. Protocol Risks:

   • While we prioritize security, different protocols carry varying levels of smart contract risk.

   • Our risk management algorithms balance high yields with security considerations.