🔓Vaults
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Originaly called SETTs, also known as Sett Vaults, getting their name from the homes that Badgers do by digging caves and tunnels for their family, are one the core products of BadgerDAO.
Similar to yearn.finance 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 stategy 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.
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.
When a cycle ends and a new one starts, dashboard claimable rewards are distributed to users according to their earned share via the badgerTree mechanism, this updates the amount of available rewards to claim.
You can see the cycle count and how long has been since the last cycle by reading the cycle count on the top left corner in the dashboard.
Each cycle lasts on average 2 hours but they can take a bit longer. If you just staked and don't see any rewards it's because at least a cycle has to pass before you see the box with claimable rewards.
Harvests, not to be confused with the Harvest crvRenWBTC sett, are a function of each sett contract called by the BadgerKeeper, a single approved keeper that performs the respective sett strategy.
The harvest updates the bToken/Token ratio based on the increase of the PFS (price per full share) and effecitvely increases everyone's deposit balance.
Every single sett counts with a different harvest function and they are not called at the same time.
For more information regarding each individual sett make sure to check the individual sett user guides.
