> For the complete documentation index, see [llms.txt](https://gremlix.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gremlix.gitbook.io/docs/quick-start/yield.md).

# Yield

## How Yield Works in Gremlix

Gremlix uses an **ERC4626 share price model** — your yield is not paid out as separate token rewards. Instead, it accrues directly into the value of your vault shares.

```
Day 1:   Deposit 1,000 USDC → Receive 1,000 gUSDC shares
                               Share price = 1.000 USDC

Day 30:  Hold 1,000 gUSDC shares
                               Share price = 1.067 USDC
         Position value = 1,067 USDC (+6.7% in one month)

Day 30:  Redeem 1,000 gUSDC → Receive 1,067 USDC
```

No claiming required — yield automatically accrues to your position.

## Yield Sources

### 1. Grid Trading Profits

The primary yield source. Every completed grid cycle (buy → sell or sell → buy) captures the spread between grid levels. These profits are recognized during harvest events and increase the share price.

### 2. DEX Points

A bonus yield layer. Every trade executed by the grid strategy earns protocol points from the Perpetual DEX. These are tracked via the Point contract and convert to DEX tokens at TGE.

**DEX points are not reflected in the share price** — they are a separate token you hold alongside your vault shares.

## Harvest Events

Yield is recognized on-chain during **harvest events** triggered by the Keeper. Between harvests, the share price is static — but yield continues to accumulate off-chain.

Typical harvest frequency: every few hours to once per day, depending on vault configuration and gas costs.

## Tracking Your Yield

### In the Gremlix App

The vault details page shows:

* **Your shares** — current share balance
* **Current value** — shares × current share price in underlying asset
* **Vault APR** — estimated annualized return based on recent harvests

### On-Chain

Your shares are a standard ERC20 token. You can track them in:

* Your wallet (MetaMask token list)
* Block explorers (Arbiscan)
* DeFi portfolio trackers

## Calculating Your Return

```
Total return = (current share price / entry share price - 1) × 100%

Example:
  Entry price:   1.000 USDC/share
  Current price: 1.083 USDC/share
  Return:        8.3%
```

## APR vs. APY

The target APRs quoted for Gremlix vaults are **APR (Annual Percentage Rate)** — simple annual return without compounding.

Since yield accrues into share price continuously, the actual returns compound naturally if you hold your shares. APY (with compounding) will be slightly higher than quoted APR.

```
APY = (1 + APR/n)^n − 1

At 80% APR compounded daily:
APY ≈ 122%
```

## DEX Points Distribution

DEX points are distributed to vault shareholders proportionally based on shares held at each harvest. Points are minted as Point ERC20 tokens to your wallet address.

To check your accumulated points, look for the Point balance in your wallet or on Arbiscan.

**Points convert to DEX tokens at the exchange's TGE** — keep your wallet address active and watch for announcements from Gremlix.

## Tax Considerations

> This is not financial or tax advice. Consult a tax professional familiar with your jurisdiction.

Common DeFi tax considerations:

* Depositing into a vault may not be a taxable event (jurisdiction-dependent)
* Redeeming shares for a higher value than deposited is typically a taxable gain
* Receiving DEX points/tokens may be taxable as income at receipt