Vault Strategies

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Overview

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Strategy Types

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1. Fixed Rate Focus

Allocation:
├── Centuari Fixed Rate: 90-100%
│   ├── 30-day maturities: 30%
│   ├── 60-day maturities: 35%
│   └── 90-day maturities: 35%
└── Cash Buffer: 0-10%

• Conservative investors
• Those wanting predictable returns
• First-time vault users

1. Curator places lend orders across multiple maturities
2. Maturity laddering provides regular liquidity events
3. Auto-rollover maintains continuous deployment
4. Cash buffer handles withdrawal requests

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2. Yield Optimized

Allocation:
├── Centuari Fixed Rate: 30-50%
├── Aave/Compound: 20-30%
├── Pendle Fixed Yield: 15-25%
├── Other Yield Sources: 10-20%
└── Cash Buffer: 5-10%

• Yield-seeking investors
• Those comfortable with multi-protocol exposure
• Experienced DeFi users

1. Curator monitors rates across protocols
2. Rebalances to highest-yielding opportunities
3. Hedges variable rate exposure when advantageous
4. Maintains diversification limits per protocol

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3. RWA Enhanced

Allocation:
├── Centuari Fixed Rate: 40-50%
├── Tokenized Treasuries: 25-35%
├── RWA Collateral Lending: 15-25%
└── Cash Buffer: 5-10%

• Institutions
• Those wanting TradFi correlation
• Risk-adjusted return seekers

1. Core allocation to Centuari fixed-rate
2. Supplemental yield from tokenized T-bills
3. Premium yields from RWA-collateralized loans
4. Natural hedge between DeFi and TradFi rates

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4. Delta Neutral

Allocation:
├── Centuari Lending: 40-50%
├── Basis Trade (Long spot, short perp): 30-40%
├── Options Premium: 10-20%
└── Cash Buffer: 5-10%

• Sophisticated investors
• Those wanting uncorrelated returns
• Market-neutral seekers

1. Lend stablecoins on Centuari for base yield
2. Capture funding rates via basis trades
3. Sell covered options for premium
4. Hedged positions reduce directional exposure

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5. Multi-Currency

Allocation:
├── USD Lending: 50-60%
├── EUR Lending: 20-30%
├── JPY Lending: 10-20%
└── Cash Buffer: 5-10%

• Global investors
• Those comfortable with FX exposure
• Seeking cross-currency arbitrage

1. Identify rate differentials across currencies
2. Allocate to highest-yielding markets
3. May hedge FX or leave exposed
4. Rebalance as rate differentials shift

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Strategy Comparison

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Rebalancing Rules

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Time-Based

• Daily: Check allocation drift
• Weekly: Full rebalance if >5% drift
• At Maturity: Redeploy maturing positions

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Event-Based

• Rate Change: Significant market rate movement
• Liquidity Need: Withdrawal queue builds
• Risk Threshold: Position exceeds concentration limit

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Example: Fixed Rate Focus Rebalancing

Current State:
  30-day positions: 45% (target: 30%)
  60-day positions: 25% (target: 35%)
  90-day positions: 25% (target: 35%)
  Cash: 5%

Trigger: 30-day allocation >5% above target

Action:
  1. Allow 30-day positions to mature (don't roll)
  2. Deploy maturing funds to 60/90-day
  3. Restore target allocation over 2 weeks

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Performance Benchmarks

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Risk Management

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Concentration Limits

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Liquidity Requirements

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Drawdown Limits

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Selecting a Strategy