Vault

This is a smart contract ecosystem that eliminates the risk of centralization, enabling users to automatically deploy their liquidity into a diversified portfolio of cross-chain DeFi yield farming strategies. The portfolio of strategies is crafted according to the investment thesis and includes only those protocols, assets, and blockchain networks that have undergone a Risk Assessment and Management Policy procedure.

Permissionless access to the liquidity deployed in DeFi strategies is solely held by the user. This means that users can autonomously reclaim their assets at any time from any DeFi protocol where their liquidity is engaged.

Over time, the composition of strategies in the Vault portfolio may change for various reasons. For example:

1. The risk-return ratio for a DeFi strategy may no longer align with the Vault's investment thesis, leading to the inclusion of new, more profitable yield farming strategies.

2. A risk event may occur with a protocol or asset in the Vault, resulting in the withdrawal of user funds.

Since Vault is an immutable smart contract, modifying the composition of its DeFi strategies requires deploying a new Vault smart contract with a new set of strategies (completely or partially). This process creates a new version of the Vault, and users are advised to withdraw assets from the outdated version and place them in the new one. As users have sole access to their liquidity, this reshuffling is done manually by the users themselves.

More details about Vault characteristics.

Investment Thesis

A description of the approach used to compile the set of DeFi yield farming strategies. The approach outlines details such as:

• Primary risks inherent in the protocols and assets to which the user is exposed when placing liquidity in the Vault.

• Reasons for including specific DeFi strategies in the Vault portfolio in terms of risk-return.

• Requirements for the risk rating of each building block in the Vault.

Risks notice

This section describes the key risks associated with the strategies and risk building blocks from the Vault portfolio.

Nominal

The asset into which all accumulated yield from providing liquidity in the DeFi strategy portfolio will be converted. For example, a USD nominal for the Vault means that all yield is converted into USDC.

Risk Level

Depending on the portfolio of DeFi strategies, the Vault's risk level is formed, ranging from 1 (least risky) to 5 (most risky), and is purely indicative. However, the risk level can be useful for users in selecting a Vault based on their risk profile.

Eligible Assets

Assets that can be deposited into the Vault for subsequent placement in the DeFi strategy portfolio. By default, all assets at the time of deposit are converted into the Vault's Notion. For example, in a USD-nominal Vault, deposited assets are converted into USDC.

Portfolio of DeFi Strategies in Vault and Income Source

A list of DeFi strategies where user liquidity will be placed to generate returns. Details about the income source for the Vault, which could include governance tokens, received from DeFi protocols as incentives for liquidity providers, trading fees, deposit rates, and more. Description of actions with the obtained yield, with default behavior being conversion into the Vault's nominal and reinvestment.

Diversification and Allocation Limits

Description of limits on allocation to various risk building blocks. The limits directly correlate with the risk rating of a particular risk building block and the risk level of the Vault itself. For example, a Vault with a risk level of 3 will have a limit on exposure to the stablecoin MiM at 10%, whereas a Vault with risk level 1 will have no exposure to MiM at all due to its higher risk.

Specific limits on risk building blocks, consequently, create a certain level of diversification in the portfolio. Diversification helps minimize user fund loss risks, as even in the event of an exploit in one risk building block in the portfolio, returns from other strategies provide resilience.

Vault Version Details

Details about changes in the composition of strategies in the Vault portfolio. Reasons why a specific strategy was removed from the portfolio and which strategies were added in the new version of the Vault.