Yield Vaults

Yield vaults convert passive onchain assets into passive yield compounding strategy shares. Vaults follow the ERC-4626 standard. Users deposit, receive vault receipt shares, earn compounded yields, and are able exit anytime via pools or during redemption windows.

How Yield Vaults Work

Flow summary

• Deposit window - Users deposit supported tokens into a vault and receive an ERC-4626 receipt representing their share of the vault.

• Epoch start - Assets are deployed onchain into yield strategies. Institutional partners quote and execute passive low-risk income strategies offchain at the best possible rates and executes them using their portfolio capital pool.

• Settlement- Onchain farm yield and realized strategy returns are finalized and automatically compounded into the vaults totalAssets(). Shares accrue value over time.

• Redemption window - Receipt tokens can be traded anytime mid-epoch or be redeemed against the accrued net asset value (NAV) during the scheduled redemption window which lasts 24h.

Fees

Example

A vault starts an epoch with 100 ETH in deposits and earns 1 ETH profit over 30 days. The vault charges a 10% performance fee (on profit) at the end of the epoch.

Formula: fee = gross_profit × performance_fee_rate

Calculation: performance fee = 1 ETH × 0.10 = 0.1 ETH

• Gross profit = 1 ETH

• Performance fee = 0.1 ETH

• Net profit returned to the vault = 0.9 ETH

Net effect for depositors: The vault’s totalAssets() and receipt NAV increase based on the net profit after fees (≈ 0.9 ETH).

Type

_{BTC Yield Vault}

Strategy

Covered CallsPassive StrategyCompounded Premia

Link

https://rfy.finance

Deposit Token

_BTC

Type

_{ETH Yield Vault}

Strategy

Covered CallsPassive StrategyOnchain Farming

Link

https://rfy.finance/

Deposit Token

_ETH

Type

_{USDT Yield Vault}

Strategy

Principal ProtectedFixed IncomeOnchain Farming

Link

https://www.rfy.finance/en/vaults/manage?chainId=1776&address=0x5cbe2cde999d80f9699000bebc07f1d04f2b1dc0&epoch=0

Deposit Token

_USDT

Type

_{INJ Yield Vault}

Strategy

Covered CallsPassive StrategyOnchain Farming

Link

https://www.rfy.finance/en/vaults/manage?chainId=1776&address=0x9a7f6c9168878aebc80ec6ac2a5596d3de593138&epoch=0

Deposit Token

wINJ

Risks and disclosures

Yield Vaults carry several material risks. Offchain execution and counterparty issues can affect settlement and NAV, smart contract bugs or exploits may lead to loss or interrupted redemptions, and mid-epoch liquidity can be limited causing high slippage or inability to exit. Market and collateral volatility can produce losses even for delta neutral strategies. Receipts are ERC-4626 and composable; using them in other protocols introduces additional risks. There is no guarantee of positive returns, and any insurance reserve is a backstop but not a guarantee of full recovery. This content is informational and not financial, legal, or tax advice.