VAULT STRATEGY

Stablecoin Yield

Optimize return on stablecoins and enhance asset security while maintaining high liquidity and operational efficiency.

Allocate dynamically

Rebalance efficiently

Avoid liquidity traps

Methodology

Asset and Protocol Allocation

The vault owner deploys stablecoins (e.g. USDC) into a non-custodial Aera vault. The Guardian makes regular parameter recommendations based on current rates to maintain desired allocation ratios and adapt to market conditions.

Yield Optimization

The Guardian monitors the supply APYs across Compound, Aave, and Morpho to maximize risk-adjusted yields. Yield optimization is achieved by simulating various levels of supply to determine the optimal allocation that maximizes yield while minimizing potential losses due to insolvency.

Risk Management

The vault Guardian runs a risk assessment every five minutes to evaluate risk exposure. The assessment monitors market volatility, non-Aera positions large enough to move the market, and the quality of collateral used to borrow supplied USDC.

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From a Stablecoin Yield customer

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