Vault Types

All vaults at this stage are capped vaults, however, our next version of the vaults will be uncapped and based on a swapping algorithm to incentivize early investors.

Capped Vaults

All investors in the vault will get a share through a receipt token corresponding to the current price of the rebased token. Initially, this will be 1 to 1 but will gradually increase as yield is rebased back into the vault. Rebasing will occur very regularly for the DeFi vault and periodically for the RWA vault or at the end of the term with a linear drop off on share allocation for the same investment amount based on the time of the investment.

Uncapped Vaults

These vaults will be uncapped with an algorithm designed to favor early investors to ape in. Using models inspired by Compound Finance we are able to reduce swap price action while still incentivizing all investors through pre-determined utilization ratio based on risk. These vaults will allow the highest capital efficiency.

Why are we taking this approach?

By using a DeFi vault as a pathway into RWA investments we can keep collateral liquid for usage in DeFi strategies allowing us to boost them with RWA yields. This allows us to increase the utilization ratios based on reduced risk while also using the DeFi vault to do partial payments for RWA yields and therefore significantly reducing ramping costs. A positive side effect of this is the ability to keep a sizeable off-chain fiat pool, greatly reducing transfer times to real-world businesses to utilize in commodity trading.