🤹♂️Multi-strategy Smart Vaults
The highest, safest yield in DeFi
Multi-strategy Smart Vaults are designed to track and gain exposure to some of the highest yields available within the DeFi ecosystem. Strategies can be proposed, included, or removed at any time by the assigned vault manager. Tokenization of these strategies abstracts away the complexity, management, and need for continual monitoring and trading for users.Here we will break down the following aspects of holding the vcSmartVault token:
Benefits
Yield Sources
Methodology
Risks
Fees
How to get vcSmartVault
What are the benefits of Multi-strategy Smart Vaults?
The primary advantage of holding vcSmartVault is its ability to outperforming the market. Additionally, vcSmartVault abstracts the complexity of DeFi by offering an objective methodology that filters out noise and focuses on sustainable opportunities. Monthly (or more frequent when necessary) rebalancing ensures users access the latest high-yield opportunities without having to research every new protocol and asset to analyze the risks and rewards.
How are components and strategies selected? (Methodology)
To be included, strategies must have the following attributes:
Be listed on DeFi Llama Yield Rankings and have the attribute of "no IL."
Have at least $1M in TVL.
Have a 30-day APY at least 400 basis points higher than the backward-looking APR of sUSDe.
Not have locking mechanisms or caps.
For fixed-term strategies, mature at least three months from the rebalance date; the initial composition may have a shorter duration due to the timing of the formal product launch.
Be compatible with VaultCraft and not require additional engineering work to make it compatible. VaultCraft may take on additional engineering work to make a strategy compatible but is not obligated to do so.
Be separate from aggregators or actively managed strategies.
No protocol can account for more than three strategies or 60% of the composition.
Protocols underpinning these strategies must be open-source and have published audits.
Additional considerations:
All airdrops and rewards will be absorbed into the token and realized as yield by token holders.
All fixed yield positions will be held to maturity, and yield will be based on the current APY, not the 30-day average APY.
The composition will consist of at least 2 strategies at all times that meet these criteria.
The included strategies will be weighted equally.
A maximum of five strategies will be included at any given time.
The product will be rebalanced monthly.
The product will not be rebalanced if there is no necessary recomposition (i.e., added or removed component).
If a component remains in the composition and its weight is between 17.5% and 22.5% of the index, it will not be reweighted.
Risks
As with any product offering higher yields, the associated risk is increased as well. vcSmartVault's smart contract risk increases with the more strategies that are included in the Smart Vault.
Risk Management
Daily Monitoring: Our team conducts daily monitoring, ready to pivot strategies at a moment’s notice to safeguard your assets against market volatility.
Advanced Bots: We’ve deployed advanced bots that tirelessly watch over our yield sources. At the slightest hint of abnormal activity, these digital guardians spring into action, pausing contracts to prevent potential exploits.
Guardrail.xyz Integration: We’ve partnered with guardrail.xyz, implementing cutting-edge technology to create an additional fortress wall against protocol exploits.
For more information on VaultCraf'ts risk management, please read VaultCraft: The Gold Standard in DeFi Security
Fees
A 1% management fee is administered for vault management.
How to get vcSmartVault
vcSmartVault is available (to non-restricted persons) via VaultCraft by depositing into the Smart Vault. The vcSmartVault token is the vault share, or representation of capital you own in the Smart Vault.
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