Single Asset Vaults
Upshift V1 vaults are built on the ERC-4626 Tokenized Vault Standard. This ensures seamless integration with the broader DeFi ecosystem. Yield is generated by capital being deployed from ERC-4626 vault to August subaccounts, where yield is realized to users in the form of increasing vault share price.
Asset Model: Users deposit a single ERC-20 asset and mint an ERC-20 vault receipt token.
Mechanism: Yield is reflected through the appreciation of the share price relative to the underlying asset.
August Subaccount
Smart contract wallets with specific permissions, enabling secure strategy management. They feature Account Abstraction and are Multi-Chain across EVMs. Curators deploy funds within whitelisted contracts but cannot withdraw directly. Curators interact with multiple DeFi protocols securely, using 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.
Composability for capital growth: 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 onboarded on DeFi lending and borrowing protocols.
Multi-Chain Yield Opportunities: Vaults natively support multiple chains, allowing users to benefit from diverse DeFi yield programs without the need for manual bridging.
Security & Permissions: Curators manage vaults but are limited by strict permissions and whitelisting controls.
Automated Unwinds: DeFi positions can be automatically unwound upon critical alerts detected by Hypernative, reducing risk.
Roles
Vault Owner: Multisig wallet with Upshift, partner protocol and strategist that controls key vault parameters and emergency functions of the vault smart contract.
Vault Operator - Responsible for processing withdrawals, updating the net asset value (NAV) of the vault and moving liquidity between the vault contract and strategist subaccount.
Subaccount Manager (Strategist) - Deploys capital and manages strategies within whitelisted contracts.
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