Baults (Auto-Compound)

Table of Contents

1. Overview

2. Quick Start Guide

3. User Interface Guide

4. FAQ

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Overview

Baults are auto-compounding vaults for your LP tokens. Instead of manually claiming BGT rewards and reinvesting them yourself, Baults handle this automatically.

Here's how it works: you deposit your LP tokens, and whenever BGT rewards accumulate, the vault automatically claims and reinvests them back into your position. Baults take care of always choosing the highest yielding BGT wrapper or raw BGT through a continuous auction mechanism.

Key Benefits

✨ Auto-Compounding - Your BGT rewards are automatically reinvested and compounded

📈 Optimal Yield - BGT rewards are continuously auctioned to highest bidder (including liquid wrappers)

🔒 Secure - Built on battle-tested ERC-4626 vault standards

💲 Tokenized - Bault shares are fully composable in DeFi (and can be stacked with Kodiak Farm)

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Quick Start Guide

Find Baults

To see which pools support auto-compounding, enable the Baults filter

Steps to find Baults:

1. Check the "Baults" filter box

2. Browse the pool list for auto-compounding opportunities

Identifying Auto-Compounding Pools

Pools eligible for Baults will show a star icon (🌟) in the APR column.

Hover over the star to see Bault details:

• "This pool is eligible for auto-compounding"

• Specific APY rate (e.g., "Earn 27.28% APY in Bault")

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User Interface Guide

Depositing in Baults

There are several ways to get your tokens into auto-compounding Baults:

1. Migration from BGT Reward Vault

If you already have positions staked in BGT Reward Vaults, you'll see a migration prompt appear automatically.

When Migration Appears

The "Migrate to Auto-Compound" prompt automatically appears when:

✅ You have positions in BGT Reward Vault (manual staking)

Example: "You have $0.28 staked in the Reward Vault. Migrate to baults to automatically reinvest your rewards and maximize your yield."

3-Step Migration Process

Migration is a 3-step process that ensures everything transfers correctly and safely.

Step 1: Review & Start Migration

Migration Setup Modal:

• Amount Selection: Choose how much to migrate (can be partial)

• Balance Check: Shows available LP tokens in Reward Vault

• Important Warning: "Any unclaimed rewards in your current vault will not be automatically migrated. Make sure to claim them separately before or after migration."

Example from Interface:

• Available to migrate: 0.0838315 KODI WBERA-HONEY

• Current value: $0.28

• Buttons: "Cancel" or "Start Migration"

Step 2: Unstake from Reward Vault

What Happens:

• Removes LP tokens from BGT Reward Vault

• Shows breakdown of what gets unstaked vs rewards that remain

• Transaction required to unstake your position

Interface Details:

• Total Value: ($0.28) 0.0838315 KODI WBERA-HONEY

• Accrued Rewards: BGT (<$0.01) 0.00069908 (not included in unstake)

• Action Button: "Unstake 0.0838315 KODI WBERA-HONEY"

Important: BGT rewards remain unclaimed and are not automatically claimed. You can claim them before or after migration.

Step 3: Approve & Deposit to Bault

Final Step:

• Token Approval: Allow Bault contract to use your LP tokens (if needed)

• Deposit to Bault: Move LP tokens into auto-compounding vault

• Receive Bault Shares: Get auto-compound vault tokens

Interface Shows:

• Final Amount: 0.0838315203... KODI WBERA-HONEY

• Value: $0.28

• Action Button: "Confirm Deposit"

Result: Your LP tokens are now in the auto-compounding Bault, earning higher yields through auto-compounding.

1. Using the Deposit Tab

You are able to deposit directly to baults using the Deposit Tab, all you have to do is turn on the "Auto-compound rewards" toggle

The below table explains how the deposit tab flow works with the toggle turned on/off

Auto-Compound Strategy (Recommended)

🔄 Auto-Compound: ON

Deposit Only Flow:

Your Tokens → Island LP → Bault Shares

• ✅ Add liquidity to Island pool

• ✅ Automatically deposit LP tokens into Bault

• ✅ Start earning auto-compounded BGT rewards

• ✅ Receive Bault shares (compound over time)

⏸️ Auto-Compound: OFF

Deposit Only Flow:

Your Tokens → Island LP (in wallet)

• ✅ Add liquidity to Island pool only

• ✅ Receive Island LP tokens in your wallet

• ✅ Manual control over what to do next

• ✅ Can stake manually later via Stake tab

With Staking Flow:

Your Tokens → Island LP → BGT Reward Vault

• ✅ Add liquidity to Island pool

• ✅ Immediately stake LP tokens in BGT Reward Vault

• ✅ Earn BGT rewards (requires manual claiming)

• ✅ Direct BGT rewards, no auto-compounding

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🎯 Stake Tab: Direct Staking

The Stake Tab is for users who already have lp tokens and want to stake them without adding new liquidity.

Real Example Walkthrough

From the Interface:

• Available: 0.24194 KODI WBERA-HONEY (Island LP tokens)

• Strategy: Auto-Compound ON

• Expected: ~0.2409 Bault-KODI WBERA-HONEY shares

• APY: 52.88% (with auto-compounding)

What Happens:

1. Stakes your 0.24194 Island LP tokens

2. Deposits them into Bault auto-compounding vault

3. You receive ~0.2409 Bault shares

4. Starts earning 52.88% APY through automated BGT compounding

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Unstake Tab

The Unstake Tab lets you remove tokens from staking positions without withdrawing liquidity entirely.

Smart Toggle System

When you have multiple staking positions, a toggle appears to choose which one to unstake:

Your Positions	Toggle Options
Reward Vault + Bault	"Reward Vault" | "Auto-Compound"

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❓ Frequently Asked Questions

Which strategy should I choose as a beginner

Recommendation: Start with Auto-Compound + Deposit Only

Why this is best for beginners:

• ✅ Hands-off management (set and forget)

• ✅ Higher long-term returns than manual

💸 When should I withdraw vs unstake?

Withdraw When:

• You need the actual tokens for other purposes

• You're completely exiting

• You want to sell the underlying assets

Unstake (Keep LP Position) When:

• You want to change staking strategies (e.g. moving to an Infrared Vault)

• You're optimizing your current position

• You might restake differently later

• You want to keep LP exposure but change reward method

🔢 How is APY calculated?

APY is calculated by annualizing the share growth from the 10 most recent realized compounds.

⚡ How often does compounding happen?

You can see how often compound happens in the bault analytics section on the app, it shows detailed information about a specific baults

🎫 What are Bault shares?

Bault Shares Explained:

• Representation: Your proportional ownership of the vault

• Growth: Share value increases as rewards compound

• Standard: ERC-4626 vault token standard

• Fungible: Can be transferred like any ERC-20 token

Example: Start with 1 share worth 1 LP token. After compounding, 1 share might be worth 1.1 LP tokens.