BANANA Maximizers are smart contracts built on top of our Staking Pools and Yield Farms, designed to help users auto-compound their rewards as they earn them. Instead of manually re-staking tokens or creating new LP tokens from rewards, the BANANA Maximizer smart contracts automatically send rewards back into the protocol, earning users more rewards over time. Vaults are expressed in "Stake [token or LP], Earn [token or LP]".
ApeSwap offers two types of BANANA Maximizers: Single Asset BANANA staking Maximizers, and liquidity provider token staking Maximizers.
The BANANA-BANANA Maximizer automates compounding rewards in the single BANANA utility token staking pool. It works based on a smart contract:
- A user deposits BANANA into the BANANA Maximizer.
- The BANANA Maximizer stakes those tokens into the BANANA-BANANA pool.
- As rewards accumulate, the BANANA Maximizer smart contract automatically harvests the reward tokens and re-deposits them into the BANANA-BANANA staking pool.
- Those additional BANANA tokens are re-staked into the BANANA-BANANA staking pool to earn more BANANA over time.
BANANA Maximizers based on liquidity provider tokens work in the same way as single asset BANANA Maximizers by auto-compounding rewards. For example: A BANANA-BNB Maximizer will collect the BANANA rewards, and re-deposit them into the single asset BANANA Maximizer. Here's how it works:
- A user deposits liquidity provider (APE-LP) tokens into their BANANA Maximizer of choice.
- The BANANA Maximizer stakes tokens in the BANANA-BNB Yield Farm to earn BANANA.
- The smart contract then takes the earned BANANA and deposits it into the single asset BANANA Maximizer, allowing users to earn more rewards based on their LP token and BANANA holdings.
ApeSwap integrates with Chainlink Keepers’ smart contract automation service to routinely auto-compound BANANA Maximizer staking rewards at significantly reduced fees for BANANA holders. Users can still anticipate withdrawal fees and performance fees as part of their BANANA Maximizer experience. When staking in BANANA Maximizers, users can expect:
- A 0.1% withdrawal fee, which is standard across the DeFi space to discourage short-term staking and de-incentivize mercenary farming.
- A 0.5% performance fee, all of which is used to maintain the Chainlink Keepers Upkeep contract, helping ensure rewards are regularly auto-compounded for users staking in BANANA Maximizers.
Because BANANA Maximizers are not designed as a revenue center for ApeSwap, our fees are lower than other similar products on the marketplace. The 0.6% in total fees reflect a nearly 4% discount against vaults on other DeFi platforms.