> For the complete documentation index, see [llms.txt](https://documentation.kodiak.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documentation.kodiak.finance/protocol/baults.md).

# Baults

<figure><img src="/files/C7NN8GAYG9aVC06CAQid" alt=""><figcaption></figcaption></figure>

### Introduction to BERA Auto-Compounding Vaults

For liquidity pools eligible for Berachain's Proof-of-Liquidity incentives, users can earn additional WBERA rewards by staking their LP tokens (Kodiak Islands) in reward vaults, or external vaults by liquid wrappers (Infrared vaults).

Auto-compounding vaults simplify this process by automatically claiming WBERA rewards and compounding them for more LP tokens!

### What are Baults?

Baults are ERC-4626 compatible smart yield-maximizing, yield-bearing vaults that help you automatically grow your Kodiak Island Tokens.

### How Do Baults Work?

#### 1. **Deposit Your Island Tokens**

* You deposit your Kodiak Island Tokens (Island tokens) into a Bault
* In return, you receive ERC-4626 Bault receipt tokens.
* Your Island tokens are automatically staked in Berachain's Proof-of-Liquidity (POL) reward vaults (<https://hub.berachain.com/vaults/>)

#### 2. **Earn Compounded Rewards in the same Island Tokens**

* The staked Island tokens continuously earn WBERA rewards.
* The Island tokens are then staked back into the Reward Vault&#x20;

**3. Continuous Auction of WBERA rewards maximizes yield**

* Anyone can trigger the claiming process by paying a small bounty. &#x20;
  * For example, assume the bounty is $100 worth of island tokens.  This means that when the Bault accrues $100 "worth of" WBERA rewards, it will be compounded.
  * The determination of when $100 "worth of" WBERA rewards is accrued is market-determined.
* The WBERA rewards can be claimed as:
  * **Regular WBERA**: Direct WBERA tokens
* Typically, "keepers" will permission-lessly claim and compound with the **WBERA.**

4. **Eligible to stack incentives with Kodiak Farms**
   * Until now, you had to choose between WBERA or Kodiak Farms with locking, multipliers, and xKDK (or other token incentives).  With Baults, you can do both!
   * Baults can be (re)staked into Kodiak Farms to earn additional xKDK and other token incentives, on top of WBERA rewards.
   * Farms will be launched after an initial period of data collection.  Before the token is launched, incentives will generally be added for the top performing pools.  After token is launched, this will  plug into the xKDK flywheel&#x20;
5. **Transparent Metrics and Very Low Fees**
   * Every single compound is transparently displayed with Berascan links.  See [Bault Analytics](/protocol/baults/bault-analytics.md) &#x20;
   * Deposit Fee: 0
   * Exit Fee: effectively 0
     * Technically, value of one compound, that goes to remaining depositors to prevent "reward hijacking."  Typically, it's less than 0.01%, users will make it up in < 30 minutes.
   * Compound Fee: up to 4.2% (varies by Bault, some may be lower).  This is set lower than most other auto-compounders that charge 5-10% performance fee.&#x20;
     * Before the token is live, fees will be used to accumulate protocol owned liquidity and add incentives to the major pools.
     * After token is live, these fees will plug into the xKDK flywheel.

### Audits?

See [audits](/security/audits.md).

### How to Deposit or Migrate?

Check out the [user guide](/user-guide/baults-auto-compound.md)&#x20;

As a quick overview, you can see the eligible pools by enabling the **Baults** filter&#x20;

<figure><img src="/files/AbVf6pBSA7ZbdDTjeNO4" alt=""><figcaption></figcaption></figure>

### **Want to be a Keeper?**&#x20;

Currently Kodiak + some partners run a basic keeper bot, using the Enso API to compound.  This bot is fully open sourced here:&#x20;

```
https://github.com/kodiak-Finance/bault-compoundor/
```

However, compounding is completely permission-less - keepers / MEV bots can use their own routes.  Any excess amounts are sent to the specified address, and are profits for the keepers.  All the necessary Bounty amounts are pre-funded and accessible through the `BountyHelper` contract (no flash loan necessary).  Check out the [technical guide](/developers/baults.md) for compounding baults.

### **Integrator?**&#x20;

Get a list of all the Baults, APY, and TVL here:&#x20;

```
https://backend.kodiak.finance/baults
```