MetaVault Mechanics

Meta-Vaults are designed to minimize idle capital, enable non-technical users to access protocol yield passively, and reduce liquidity fragmentation across the system. Deposits are pooled into modular strategy contracts that isolate risk, ensuring that if a downstream Pod underperforms or is liquidated, only its allocated portion of vault capital is affected.

A governance system that is controlled by vlPEAS* determines which Pods can receive allocations, and how much they can be allocated from the MetaVault. Through this system, it is the role of vlPEAS voters to conduct due diligence risk assessments on any Pod seeking to enable or increase allocation from the MetaVault. This includes examining the integrity of the Oracles used, the amount of liquidity available, the underlying asset (TKN) and any other factors that may contribute to lending risks.

MetaVaults target 80% Utilization to ensure that funds are available to be withdrawn by lenders as they desire, but this value can fluctuate depending on in-market activity and lender withdrawals.

Key user benefits:

• Passive Income: Earn lending yield through a risk-managed strategy which allocates to the greatest risk-adjusted opportunities without requiring active monitoring and adjustments.

• Easy to Use: MetaVaults are a simple and accessible strategy making it a prime candidate for all parties from DAOs to first-time Defi users.

• Risk Controls: vlPEAS voting on caps per Pod and whitelisting ensure that user capital is risk-managed whilst the diversifaction of lending allocations ensures that risk is not isolated to a single lending pair.

• Aligned Incentives: As vlPEAS earn a Revenue Share which is derived from LVF Revenue, these voters are incentivised to allocate capital in a way that secures the highest yield for lenders, whilst meeting the demand of borrowers which ensures maximum liquidity efficiency for the entire Protocol.