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Receiving BEAN tokens from LATTE Auto-compounding Vault
When you stake your LATTE tokens into the auto-LATTE pool, you will receive BEAN tokens in a 1:1 ratio with the number of LATTE tokens you stake. However, you will not automatically receive BEAN tokens from the LATTE rewards that were auto-compounded back into the pool.
In order to redeem the BEAN tokens from the auto-compounded LATTE, you must first unstake your LATTE tokens from the vault by trading in the BEAN tokens you received initially, and then re-stake the your LATTE tokens back into the pool.
While your LATTE balance in the auto-compounding pool will increase as rewards get compounded, your BEAN balance will remain the same. However, LatteSwap keeps track internally of the exchange rate for your BEAN tokens and the LATTE tokens in the vault for you. You will be able to redeem the increased LATTE balance using the same amount of BEAN tokens you received from staking initially.
To explain the process better, here is an example:
  1. 1.
    You first staked 1,000 LATTE tokens into the LATTE auto-compounding vault, and received 1,000 BEAN tokens as a receipt.
  2. 2.
    30 days has passed, and based on the APY, your LATTE balance in the vault has grown to 1,500 LATTE.
  3. 3.
    However, the BEAN balance in your wallet remains at 1,000 BEAN tokens. In order to redeem the additional 500 BEAN tokens, you must unstake your 1,500 LATTE tokens you have staked in the vault.
  4. 4.
    You can do this by trading in the 1,000 BEAN tokens you received initially. LatteSwap will give you back the full 1,500 LATTE you have staked in the auto-compounding vault, as the protocol keeps track of exchange rate internally for you.
    • Note that the team is working on a UI improvement to show the exchange rate for our users (e.g. you must trade in XX BEAN to unstake XX LATTE)
  5. 5.
    To redeem the additional 500 BEANS, you can re-staked the 1,500 LATTE tokens you received back into the vault. The protocol will mint you 1,500 LATTE in the process.
Note that there is a 0.1% withdrawal fee on LATTE tokens you unstake within the 72 hours upon your last staking in the LATTE auto-compounding vault.
Please also note that there is a 2% performance fee charged on rewards earned from auto-compounding.
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