Adamant Vaults on Polygon

5 min readMay 7, 2021

Adamant is a yield optimizer vault that consists of many farmers pooling their time and resources to collectively earn the best DeFi yields. Adamant vaults provide users with an easy and safe way to automatically compound their tokens on the Polygon(MATIC) network.

Adamant currently has around 100 vaults for Quickswap, SushiSwap, Cometh, Elk and others. Users deposit LP tokens to Adamant’s vault contracts, which are then compounded into more LP tokens. Utilizing the power of exponential compound interest allows Adamant’s vaults to earn much higher yields compared to normal yield farming. Users also avoid gas fees and save time.

What is Auto-Compounding?

Auto-compounding vaults automatically sell the harvested awards to increase the size of your LP position. When you withdraw from an auto-compounding vault, you will withdraw more of your LP tokens.

Users can also manually compound for a vault if they wish to. Manually compounding for some vaults takes two steps because the pool the vault is farming has a feature to prevent external smart contracts from claiming rewards and depositing in the pool in the same transaction.

When you withdraw from an auto-compounding vault, you will withdraw more of your LP tokens along with any ADDY that you have earned. Withdrawing from a vault will withdraw all of your staked tokens; partial withdrawals are not supported.

Legacy Vaults (Auto-Compound PolyZap)

These vaults automatically sell 1/2 of the harvested tokens and compounds them into more LP tokens, like normal Auto-Compound vaults. However, they are not eligible for ADDY rewards because the fee distribution contract does not support distributing the harvested tokens, and only have a 2% performance fee.

ADDY/ETH LP Reward Pool

Although this pool doesn’t auto-compound, users can stake ADDY/ETH LP tokens in this vault to earn even more ADDY tokens. There are other ADDY/ETH LP Vaults that do offer auto-compounding.

Adamant Token (ADDY)

Adamant Token (ADDY) is the native token on the platform and provides value for liquidity providers and token stakers. You can earn ADDY by using the vaults or by buying it on Quickswap. Roughly 13% of all ADDY minted goes towards development to ensure rapid innovation.

Contract Address — 0xc3FdbadC7c795EF1D6Ba111e06fF8F16A20Ea539

Proven Tokenomics
ADDY borrows aspects from the tokenomics of two of the leading DeFi platforms on Binance Smart Chain: Pancake Bunny and Ellipsis, both of which have multi-billion dollar TVL.

ADDY has an emission system similar to Bunny’s, where for every 1 BNB earned in performance fees, 5 BUNNY were minted. In ADDY’s case, 475 ADDY are minted for every 1 ETH earned in performance fees. The amount of ADDY minted for each ETH earned in performance fees will decrease over time.

The ADDY token does not have a maximum supply, like BUNNY.

Because ADDY emissions are based on the profit generated through performance fees, that means excess supply won’t flood the market during periods of low revenue, like bear markets. This ensures that ADDY will retain its value better than most tokens during suboptimal economic conditions.

Safety

The flash loan exploits that affected platforms like Bunny and Harvest involved depositing into a vault, manipulating the price of assets with flash loans, and then manipulating the amount of the reward token minted through various means.

Unlike BUNNY, our vaults block smart contracts from depositing into them, which means a flash loan attack based on manipulating the price of the underlying asset when claiming ADDY isn’t possible. Our vaults also guard against other reward manipulation exploits.

The price calculator that the Minter contract consults is being updated to get the price of WMATIC from a Chainlink oracle and mint ADDY based onmin(oracle price, current price), which will prevent other possible types of price manipulation exploits.

Our contracts are also audited.

Fees

The differentiating factor in a lot of yield optimizers is the fee structure. Here is a breakdown of the fees for Adamant.

Performance Fees

Unless otherwise indicated, most vaults have a 30% performance fee. This may sound like a lot, but for every 1 ETH in fees collected, you get 450 ADDY.

100% of the performance fee is distributed to vesters, stakers, and lockers in the ADDY vault as WMATIC.

Early Withdraw Fees

There is a withdrawal fee of 0.5% for early withdrawals within 72 hours for all vaults except for the main ADDY-ETH vault.

Deposit Fees

Majority of the vaults do not have a deposit fee. Some of the Qi vaults have a 0.5% deposit fee (this is because mai.finance has 0.5% deposit fee).

Staking ADDY

You can earn ADDY utilizing a fee sharing vault or you can purchase it.

Freshly minted ADDY is considered vested until the 90 day vesting duration expires or it is withdrawn from the fee distribution contract with a 50% penalty. Vested ADDY earns performance fees.

Users can choose to stake ADDY and earn performance fees. Staked ADDY can be removed at anytime with no penalty.

Users can also choose to “lock” it within the fee distribution contract. Locked ADDY cannot be withdrawn for 90 days — it is NOT possible to pay a penalty to withdraw locked ADDY early.

It is not possible to directly lock vested ADDY. It needs to be withdrawn first (50% penalty), then locked.

Locking demonstrates a commitment to the long-term vision of Adamant. Along with receiving performance fee dividends, users who lock ADDY receive 100% of the penalty fees paid by users who withdraw vested tokens. Distribution of exit penalty fees begins immediately when a vested user withdraws early, and are released evenly over the following seven days. ADDY earned by locking ADDY is not locked or subject to the early withdrawal penalty.