Introduction

A little preamble on how a bera can make use of Hiberanation.

Welcome to Hiberanation.

We're a money management engine that automates the execution of various yield-maximizing strategies, both on single chains as well as cross-chain.

In DeFi, Beras can earn passive income by depositing crypto into a smart contract and receiving interest or yield on their deposit. Yield can be earned from liquidity pools (LPs), automated market makers (AMM), or other “stake & earn” protocols. Using the principle of compound interest, a Bera can maximize their yield by:

1. Claiming rewards (Claim)

2. Swapping to the deposit token (Swap)

3. Depositing the rewards (Restake)

Autocompounders, also known as Yield Optimizers, are automated services that do these three steps as often as is economically feasible. Although there are many different strategies and implementations of autocompounders, they all generally work the same way:

1. Autocompounders have a Beras deposit their crypto into the Autocompounder Vault (smart contract)

2. The Vault then stakes its crypto into the underlying “stake & earn” protocol to earn rewards

3. The rewards are automatically compounded (Claim, Swap, Restake)

By using a Vault, rewards can be compounded quicker, more often, and more efficiently than manually. Vaults also save gas fees across the aggregate of Beras by compounding all the deposits together.

Examples of autocompounders are: Beefy.Finance, Yieldwolf, and Hiberanation.