Introducing ApeSwap Burning Vaults

4 min readSep 3, 2021


(From the perspective of a regular user)

How it looks like in real life

It has finally arrived! The long awaited autocompounding $BANANA pool that everyone has been awaiting for at ApeSwap. However, as usual with the simian developers, there is an interesting twist to the vault service as compared with others.

How does a vault work?

To put it simply, a vault just autocompounds the deposited tokens and keeps going until the user withdraws everything. The platform that provides the service will keep part of the rewards as revenue and will usually reward a 2nd token, which is normally it’s own native token.

ApeSwap vaults, however, is more economic and community centric. It still provides the same autocompounding feature but contributes part of the revenue earned to buyback $BANANA from the open market and send them to the burn address to be “deleted” forever to reduce the impact of inflation.

How to use the vaults

Getting onboard the ApeSwap vaults is an easy process. Just deposit tokens into the appropriate vault and you are good to go. It is similar to a regular farm or pool. I’ll run through it quickly and highlight certain portions of the website where I’ve seen users ask questions about in a small FAQ.

As an example, below is my deposit of $BANANAs into the single staking Banana vault.

Max out all my $BANANAs for deposit
Time to sit back and relax

It’s similar to going to a bank and depositing your fiat. There’s actually nothing to do after and just come back once in a while to check the amount of staked tokens, which will increment over time.

Frequently Asked Questions

How come I earn so much lesser than expected?
The vaults are denoted in APY vs the farms and pools, which are denoted in APR. There is a difference between how it’s calculated. A good reference site would be —

But you take away my rewards and send them to be burnt!
Yes, part of everyone’s rewards are sent to be burnt. However, the APY values already factor that in. You are earning as stated by the APY values. In other words, you do not need to worry that part of your profits will be mysteriously reduced.

Already includes the burn tax

Then how does ApeSwap sustain the APY? It sounds scammy
The platform uses 10% of DEX trading fees to supplement the vaults to “buff” the APYs so that users can still earn competitive rates AND still allow ApeSwap to generate enough burn to fight against inflation.

Why is there no rewards window so I can see how much I have earned so far?
Unfortunately, there isn’t one at the moment. The rewards earned are added back into the staked amount. You can see the numbers growing over time, but at the current moment, the only way to track how much earned would either be to remember what was deposited initially or going to to check the initial transaction.

This is what I have made so far writing this article — compare with above screenshot

What is the “compound all” button for?
ApeSwap does regular compounding of all vaults at intervals throughout the day. This button is for users who would like to perform the same thing at their own cost but will be rewarded with 0.25% of the earnings across all the vaults. Take heed it may be a costly transaction due to the complexity of the smart contracts. The rewards earned may or may not cover the cost of the transaction.

Personally, I don’t use this

What’s the Burning Vault?
Vaults tagged with this are considered to be on steroids. It contributes much more significantly to the burns of $BANANA by having a higher “taxation” rate to the rewards earned. Again, please read the 2nd FAQ question above to answer what I think will be your next question.

Some other platforms remove the withdrawal fees after 72 hours. Will ApeSwap do it too?
At this juncture, the withdrawal fee remains, even after 72 hours. Do note that at ApeSwap, you rewards are not “replaced” with a native token but the deposited token just keeps growing with DEX trading fees constantly added to keep the vaults lucrative.

Personally, I like the ApeSwap burning vaults and would like to call-out to everyone who is vested in ApeSwap to contribute to it. If you have $BANANA staked elsewhere, do consider moving some or all of it back to the ApeSwap Vaults.

The more TVL we have in the vaults, the higher the burn and lesser $BANANAs in circulation. And you know what happens when there is scarcity…

JP (Derek)




CryptoWriter. Community moderator for ApeSwap & ApeRocket. Interested in DeFi platforms and always learning NFTs. Believe in Health > Wealth for me and you.