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Security and Safety of Principals

• Principals are always safe: Funds can only be deposited into trusted and decentralized protocols for yield generation.
• Separation of concerns: The keeper program only contains logic to find optimal yield allocations and to limit fund flows from the vaults to the protocols. It cannot access or claim principals.
• Decentralized governance: We aim to upgrade authority for decisions around lending protocol integrations and allocations to a decentralized Autonomous Organization (DAO).

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Full Liquidity at All Times

• Instant access: Deposited assets remain liquid and accessible at all times, allowing users to withdraw funds at will.
• Liquidity checks: The vault’s total deposit amount is always checked against the reserves left in the lending platform.
• Automatic withdrawals: If the liquidity reserve in a pool drops below a predetermined threshold, the vault will withdraw from the pool to ensure sufficient liquidity for user withdrawals.

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Optimized Yield Returns

• Dynamic allocation: The vault program monitors and calculates yield variations across all connected lending platforms, dynamically allocating and rebalancing assets to those with the highest returns.
• APR awareness: The annual percentage rate (APR) of a lending pool depends on factors such as borrowing amount, deposit amount, and the interest rate model. Deposit APR decreases as more is deposited, since borrowing interest is shared among depositors.
• Optimal allocation algorithm: The algorithm must compare and find the best APR among platforms for a given deposit sum.

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Ease of Integration and Usage

• User-friendly design: Vaults and SDKs are designed to be straightforward and easy for any user or protocol to utilize and build applications on top of.
• Comprehensive resources: We provide full guides, code examples, and an API to help anyone connect to the vaults and access all integrated lending reserves.
• Ecosystem vision: Our goal is to make the vaults the yield infrastructure for all of Solana.

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Event Monitoring and Tracking

• Continuous monitoring: Lending pool APY, utilization rates, and reserve levels are continuously monitored for better yield opportunities and risk management.
• On-chain advantages: Solana’s composability, speed, and low transaction fees enable on-chain event monitoring that surpasses other blockchains, helping us achieve these design principles.