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Users can use Portfolios (rrVaults) as the primary value accrual strategy of One Click Crypto protocol. Users stake their native coins (e.g. ETH, MATIC) to earn yield rewards. The yield reward on pf1CC_n is a function of the average yield generated by DeFi protocols of a given Porftolio_n.
Portfolios are bucketed by different risk categories so every user can find an optimal one for their preferences.
Staking is the process of locking native coins in anticipation of earning pf1CC_n yield generation rewards. Locked native coins are exchanged for an equivalent number of newly minted pf1CC_n tokens. In case pf1CC_n being a rebase token, its total balance automatically rebases at the end of every epoch.
Unstaking of pf1CC_n is the process of burning pf1CC_n tokens in exchange for an equal number of the native coin. Unstaking means that the user is forfeiting upcoming yield generation rewards. The forfeited reward is only applicable to the unstaked pf1CC_n tokens; the remaining staked pf1CC_n tokens will keep earning yield-generation rewards.
- Every portfolio is a smart contract that represents a specific allocation of DeFi protocols
- Native coin is used for users deposits to minimize numbers of “clicks” to be required from the user (e.g. ETH, MATIC, etc.)
- pf1CC_n tokens get minted proportional to deposits.
- pf1CC_n tokens get burned proportional to deposit redemption.
The method of wrapping pf1CC_n tokens into 1CCindex tokens results in another great feature of rebalancing from pf1CC_n to pf1CC_n+1. Any user can rotate out of pf1CC_n and into pf1CC_n+1, thus getting access to DeFi protocol exposure in Portfolio_n by executing a single transaction.
In the contemporary DeFi yield product landscape, users need to unwind their entire exposure from Portfolio_1 by unwinding all Portfolio_1 positions followed by opening Portfolio_2 positions. Such logistics is extremely costly, especially when the networks are overloaded. Thanks to this One Click architecture, swapping from Portfolio_1 and into Portfolio_2 has both UX and gas fee advantages.
- pf1CC_n represents the non-rebase token that can be used for cross-chain transactions.
- There is disincentive against pulling funds from pf1CC_n pool due to blockchain transactional fees to be paid for unwinding positions from all invested DeFi protocols.
- pf1CC_n can be swapped for pf1CC_n+1 for rebalancing.