🥩Cetus Yield Farming

Overview

This document describes the architecture and workflow of the Auto-Compounding Protocol integrated with Cetus Protocol. The protocol automatically harvests rewards, converts them into liquidity, and compounds returns for users while charging a protocol performance fee.

Cetus Protocol Integration

Cetus Protocol is a concentrated liquidity DEX. Liquidity providers deposit tokens into pools and earn trading fees and incentive rewards.

Reference pools: https://app.cetus.zone/pools

Available Farms

JewelSwap auto-compounds the following Cetus pools:

Farm	Pair type
USDC–SUI	Stablecoin / SUI
wUSDC–SUI	Stablecoin / SUI
USDC–ETH	Stablecoin / ETH
USDC–CETUS	Stablecoin / CETUS
USDC–SCA	Stablecoin / SCA
CETUS–SUI	Ecosystem / SUI
SCA–SUI	Ecosystem / SUI
DEEP–SUI	Ecosystem / SUI
NS–SUI	Ecosystem / SUI
HIPPO–SUI	Ecosystem / SUI

Pairs that hold two different assets are exposed to impermanent loss if those assets move apart. See Risks - Impermanent Loss for the mechanics.

Protocol Workflow

1. User Deposit

Users deposit farm tokens (LP tokens or single assets depending on strategy) into the protocol smart contract.

Process:

• User approves token spending

• User calls deposit() function

• Tokens are locked in the vault contract

• User receives vault shares representing their ownership

2. Reward Harvesting and LP Reinvestment

The protocol harvests rewards from Cetus farms every 30 minutes, on an automated schedule. No user action is required.

Harvest flow:

1. Claim farming rewards from Cetus

2. Swap reward tokens into the underlying LP token pair

3. Add liquidity back into Cetus pools

4. Mint additional LP tokens

This increases the vault’s total assets and compounds user returns.

3. Boosted Rewards via xCetus

The protocol stakes CETUS tokens into xCetus to obtain boosted yield multipliers (when applicable).

Benefits:

• Higher farming APY

• Increased reward allocation

• Additional governance benefits (if applicable)

Boosted rewards are also harvested and reinvested automatically.

4. Auto-Compounding Engine

The protocol runs an automated compounding strategy:

• Harvest rewards at scheduled intervals

• Convert rewards into LP tokens

• Reinvest into Cetus pools

• Update vault share price

Users do not need to manually claim or reinvest rewards.

Farms page with APY

Single wUSDC-SUI farm

Leverage Policy

Cetus farms run at 1× — there is no borrowing and no liquidation risk. Your exposure is the pool position itself. This is the key difference from Scallop Yield Farming, which borrows against your deposit to build a leveraged position.

Protocol Fees

Performance Fee

• 15% performance fee is charged on harvested rewards

• Fee is taken before compounding

• Remaining rewards are fully reinvested

Fee allocation example:

• 100 CETUS rewards harvested

• 15 CETUS sent to protocol treasury

• 85 CETUS compounded for users

User Benefits

• Fully automated compounding

• No manual harvesting required

• Boosted yield through xCetus staking

• Transparent fee model

• Vault share-based accounting

Risk Disclosure

Users should be aware of the following risks:

• Impermanent loss from LP positions

• Cetus protocol dependency risk

• Token price volatility

• Oracle and swap slippage risk