# Earnifty Infographics

## The yield farming steps that Earnifty executes for you:

![](https://3316006021-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxJV79aA3vB2AsLlrOMfV%2Fuploads%2FHI8aINZpVS566kBe7WtR%2FUntitled-2.png?alt=media\&token=70aefc60-c61c-430f-b756-745a331299a2)

At Earnifty, you **earn** what you **stake**, whether it's a Liquidity Pool (LP) token or a single asset. In this example, staking WAG-VLX LP will result in more WAG-VLX LP over time. In this way, you efficiently grow your share in the liquidity pool and thus earn more and more rewards over time. All this with Earnifty doing the hard work, while you can just sit back and chill!

## The vault fee structure explained:

![](https://3316006021-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxJV79aA3vB2AsLlrOMfV%2Fuploads%2FAVUqxCL27kOlZ0v3zWEB%2F2022-04-23-Vault-fee-structure.png?alt=media\&token=6321347d-70b3-4541-97b3-dc81387e454c)

Most vaults have a performance fee structure. This 20% fee on profits is split up: 9% is assigned to treasury, 9% is distributed to Velas Punks stakers and 2% for Velapes Academy stakers. These fees are already built into the APY of each vault and daily rate. The rates will be readjusted according to the collections' supply.

The performance fee on the extra yield, which is the profit from the vault, is significantly reallocated to Velas Punks and Velapes Academy stakers and is the main source of Earnifty's platform revenue. Part of this funds the cash flow, which is used to finance the development and security of the platform. The performance fee was also established to drive community involvement and governance participation. The engagement of the community is essential to our future expansion, which will further reward the users of the platform.

## What is APR vs APY?

**APR** refers to the simple interest accrued from a particular investment over a 1 year period. **APY** refers to the compounded interest accrued from a particular investment over a 1 year period. To understand the magic of compounding, check below:

![](https://3316006021-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxJV79aA3vB2AsLlrOMfV%2Fuploads%2F81GRwAoJKd5eGjRRnXs3%2FUntitled-4.png?alt=media\&token=8a80479a-5269-4b91-bbb9-2ba73802badf)

It is also important to keep in mind that the annual return displayed is dynamic and can evolve (increase and decrease) over time, mainly due to two reasons:

* Price of the reward token farmed and compounded into the main one
* Amount of people or value locked inside the pool


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