How Reaper Farm works

Reaper is maintained by Byte Masons, a development collective specialized in DeFi security and ventures. When you deposit LP tokens into a Reaper Crypt, it will start to auto-compound your returns to maximize yield. This auto-compounding feature is performed by a Reaper harvest bot. Each Reaper Crypt is comprised of two smart contracts: a Vault contract and a Strategy contract. The Vault contract manages all deposits and withdrawals for all Crypt assets. The Strategy contract handles all transactions; it sells the rewards farmed from your deposits, swaps it for more LP tokens, and re-deposits them into the Vault contract. All gains remain in the Crypt and continue to auto-compound until the user withdraws.

How Reaper Farm makes money

The fee structure on Reaper differs between single-strategy and multi-strategy Crypts. Single-strategy Crypts take a 4.5% fee on the profit earned on each harvest and a 0.1% fee on all withdrawals. Of the 4.5% profit fee, 4.05% is sent to the treasury and 0.45% is paid to the user who called the harvest function. Some select Crypts may also have deposit fees but this will be displayed as a warning on the Crypt panel. Multi-strategy Crypts take a 10% fee on the profit earned on each harvest. There is no withdrawal fee.

How you make money on Reaper Farm

You generate yield by depositing your LP tokens in a Reaper Crypt. These strategies generally involve depositing the underlying assets to third-party DeFi platforms to earn protocol fees and rewards. Your yield can come from lending interest, trading fees, staking rewards, as well as savings on transaction fees from socializing gas costs across all pool depositors.