Vault Architecture

Upshift Vault

Core ERC-4626 vault where users deposit funds.

Yield generated by capital being deployed from ERC-4626 vault to August subaccounts, where yield is paid back from the sub accounts to the vault in the form of interest.

August Subaccounts

Smart contract wallets with specific permissions, enabling strategy management. They feature Account Abstraction & Multi-Chain across EVMs.

Strategists deploy funds within whitelisted contracts but cannot withdraw directly. Strategists interact with multiple DeFi protocols securely, using Account Abstraction and WalletConnect.

Subaccounts are deployed on multiple chains with the same address, enabling cross-chain strategies.

Key Features & Benefits

• Simplified User Experience - A single reference token per vault reduces complexity for users.

• The receipt token allows for use cases on secondary markets, such as Pendle markets where PT, and YT tokens are available, or to LP the receipt token on chain, to build up secondary liquidity via Decentralized Exchanges (DEXs). Once secondary liquidity has been established the receipt token can be onboarding my DeFi lending and borrowing protocols.

• Multi-Chain Yield Opportunities - Vaults natively support multiple chains, allowing users to benefit from diverse DeFi yield programs without needing manual bridging.

• Security & Permissions - Strategists manage vaults but are limited by strict permissions and whitelisting controls.

• Automated Unwinds - DeFi positions can be automatically unwound upon critical alerts detected by Hexagate, reducing risk.

Roles & Permissions

• Vault Owner - Controls key vault parameters and emergency functions.

• Vault Operator - Manages loans, adjusts APR, and executes loan callbacks.

• Subaccount Manager (Strategist) - Deploys capital and manages strategies within whitelisted contracts.

• Lender/Owner - Multisig wallet with Upshift and partner protocol that oversees whitelisting and permissions.

Fees & Costs

Management Fees can be charged on the total value locked (TVL) on the vault. I.e with a 2% management fee the reference token price decreases by an amount corresponding to the 2% management fee of the vault ~0.038% each week.