# DACKIE LP Vault: Earn Passive Income with Your DACKIE & ETH

*Earn Passive Income with Your DACKIE & ETH*

By [DackieSwap](https://paragraph.com/@dackieswap) · 2025-09-28

crypto, defi, yield, earn

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What is DACKIE LP Vault?
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DACKIE LP Vault is a powerful feature designed to boost liquidity for the DACKIE token while offering you a simple way to earn passive income.

By depositing your DACKIE and ETH into the vault, you contribute to a shared DackieSwap V3 liquidity position. This position is configured to provide liquidity across the **full price range**, ensuring stability and fee generation regardless of market movements. In return, you earn a share of the trading fees generated by that position. The vault automatically collects these fees and converts them into **cbBTC**, providing you with a steady stream of passive income in Bitcoin (That's always grow sustainably over time)

The primary goals of DACKIE LP Vault are to:

*   Increase the liquidity for the DACKIE-ETH trading pair.
    
*   Reward liquidity providers with cbBTC and other tokens.
    

![](https://storage.googleapis.com/papyrus_images/9c1097740ed4079f17a0f9a6a9827108119bd68bd2a86aaca60201daaa7e3f88.jpg)

Key Features & User Actions
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Here’s a summary of what you can do with DACKIE LP Vault:

Standard Actions
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*   **DEPOSIT**: Provide liquidity by depositing DACKIE and ETH (or WETH) into the vault. The system handles the rest.
    
*   **COLLECT FEES**: Manually trigger the collection of your accrued trading fees, which are then converted to cbBTC and sent to your wallet.
    
*   **WITHDRAW**: Withdraw your principal liquidity. When you do this, the system automatically collects and converts any pending fees for you first.
    
*   **EMERGENCY WITHDRAW**: Immediately withdraw your principal liquidity without collecting fees. This is useful during times of high market volatility when you need to exit a position quickly. Note, this function cannot withdraw your locked liquidity, locked liquidity can only be withdrawn when expired. (Need to process on [Basescan](https://basescan.org/))
    

Boost Your Rewards with Locked Deposits
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For even greater returns, you can lock your liquidity for a set duration, from 1 day up to approximately 2 years. The longer you lock, the higher your reward multiplier, which can go up to **5.0x**. This multiplier significantly increases your share of extra rewards.

*   **DEPOSIT & LOCK**: Make a new deposit and choose a lock duration to start earning boosted rewards immediately.
    
*   **CONVERT TO LOCKED**: Move your existing flexible (normal) liquidity into a locked position.
    
*   **INCREASE LOCKED LIQUIDITY**: Add more funds to an existing locked position without changing its expiry date.
    
*   **EXTEND LOCK DURATION**: Extend the lock period on your funds, which may also increase your reward multiplier.
    

![](https://storage.googleapis.com/papyrus_images/ff253db30fd6a30adb6da20f47c666d16b7e037619db84cc3f35274abe668f4e.png)

Earning Rewards: cbBTC, DACKIE, and More
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DACKIE LP Vault offers multiple streams of rewards:

1.  **Trading Fees (cbBTC)**: Your core reward comes from trading fees. DACKIE LP Vault offers a significant advantage over standard liquidity provision. Previously, providing liquidity to the [DACKIE-ETH 1%](https://docs.dackieswap.xyz/dackieswap/product-features/traders/trading-fee#dackieswap-native-lp-fee) pool on DackieSwap V3 would earn you 0.66% of the trading fees by DACKIE and ETH, with 0.33% going to the treasury. **With DACKIE LP Vault, you receive an enhanced share of 0.8% of all trading fees**. These fees are automatically collected and converted to cbBTC for you.
    
2.  **Extra Rewards (DACKIE & Partner Tokens)**: On top of cbBTC fees, you can earn additional rewards like DACKIE and other partner tokens. Your share of these rewards is determined by your "reward weight," which is calculated as:
    
    > `Reward Weight = Normal Liquidity + (Locked Liquidity × Multiplier)`
    
    This means your locked funds, boosted by the multiplier, earn you a significantly larger share of these extra rewards.
    

![](https://storage.googleapis.com/papyrus_images/443aa73c09b86389481dea24edf4550e56be3ab27d5cf2898fab12e0e3fe1737.png)

**Automatic Reward Claims**: To make things seamless, any time you perform an action that changes your liquidity (like depositing, withdrawing, or locking), the system will **automatically claim all your pending extra rewards** in the same transaction.

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*Originally published on [DackieSwap](https://paragraph.com/@dackieswap/dackie-lp-vault)*