Vaults

Overview

Noderr Protocol's vault system provides automated yield generation through diversified DeFi strategies. The six user-facing vaults are deployed as per-tier EIP-2535 diamonds on Base Sepolia, denominated in test USDC (tUSDC, mintable from the Faucet). All vaults implement the ERC-7540 standard, an extension of ERC-4626 that enables institutional-grade async operations for crosschain strategies, real-world assets, and complex yield generation mechanisms. Each vault uses a two-bucket design: a principal-protected Floor plus a Trading bucket.

ERC-7540: The Institutional Standard

Unlike traditional ERC-4626 vaults that execute deposits and withdrawals synchronously, Noderr's ERC-7540 vaults use an async 2-step flow:

Deposit:  requestDeposit() → [fulfillment] → claimDeposit()
Redeem:   requestRedeem()  → [fulfillment] → claimRedeem()

Why async? This architecture enables:

• Cross-chain strategy execution
• Real-world asset integration
• Sophisticated risk management
• Institutional compliance requirements

But don't worry! Our UX improvements make this seamless:

• VaultRouter: Single-transaction experience with auto-claim
• InstantLiquidityPool: Skip the wait entirely (2-5% premium)
• AutoClaimKeeper: Validators execute claims automatically

Vault Types

The protocol offers six vault tiers, each with a distinct risk profile and strategy focus. Blended depositor yield across the system targets ~4.9–6.1% APY (a design target, not earned returns — on testnet no venue is bound and no yield has been earned yet), composed of the principal-protected Floor allocation (~78.8% of capital, targeting ~4.5%) plus the Autonomous Trading Engine / ATE allocation. The "Strategy Focus" column lists the external-protocol opportunities each tier is designed to draw on; the rates available on those underlying protocols are external-protocol potential, not Noderr vault yield. Any higher combined figure would include node revenue-share rewards, which are not funded on testnet — it is never a vault-only number.

How Vaults Work

Standard Async Flow (Best Price)

1. Request Deposit: User submits deposit request via VaultRouter
2. Fulfillment: Vault processes request asynchronously (no fixed on-chain delay)
3. Auto-Claim: AutoClaimKeeper executes claim automatically
4. Yield Generation: The Autonomous Trading Engine (ATE), a conceptual umbrella implemented on-chain by the ExecutionRouter, StrategyRegistry, and Base-Rate Governor, allocates capital to approved strategies
5. Distribution: Returns compound in vault shares

Cost: 0.1% auto-claim fee (or 0% for manual claim)

Instant Flow (Speed Priority)

1. Instant Deposit: User deposits via InstantLiquidityPool
2. Immediate Shares: User receives vault shares instantly
3. Yield Generation: Same as standard flow

Cost: 2-5% instant liquidity fee (based on pool utilization)

Deposit Options Comparison

Key Features

Automated Management

All vaults are fully automated, requiring no active management from depositors. The Autonomous Trading Engine (ATE), realized on-chain by the ExecutionRouter, StrategyRegistry, and Base-Rate Governor rather than a standalone service, continuously monitors performance and rebalances approved strategies to optimize returns.

Risk Management

Each vault implements strict risk controls:

• Position Size Limits: No single strategy exceeds 5% AUM
• Leverage Caps: Maximum leverage varies by vault tier
• Drawdown Thresholds: Automatic position reduction on losses
• Emergency Pause: Guardian-triggered halt on anomalies
• Strategy Validation: Strategies are screened before approval; the Shadow Data Swarm is a planned/conceptual validation layer (not yet implemented on-chain)

Fee Structure

Every vault charges zero management fee. The protocol earns only a performance fee, and only on realized gains above each vault's soft hurdle rate and its prior high-water mark (HWM). Performance fees are charged strictly from the vault's trading bucket — never from the principal-protected floor — so protected capital is never charged. The performance fee and soft hurdle are set per vault and scale with risk tier:

Optional convenience fees are separate from the vault fee model:

Example (Aggressive vault: 0% management, 15% performance, 8% soft hurdle — illustrative, no yield earned on testnet):

• Vault generates 15% return
• Soft hurdle: 8%
• Excess return above hurdle: 15% - 8% = 7%
• Performance fee: 7% × 15% = 1.05%
• Net return to user: 13.95%

Transparent Performance

Vault performance metrics are publicly available and updated in real-time:

• Current APY
• Total Value Locked (TVL)
• Historical returns
• Strategy allocation
• Risk metrics
• Fulfillment queue status

Deployed Contracts (Base Sepolia)

Each user-facing vault is its own per-tier EIP-2535 diamond, denominated in tUSDC:

The Prediction Markets vault is planned and not yet deployed.

Getting Started

For Users

1. Review the Deposit Guide
2. Get testnet tokens from the Faucet
3. Choose your preferred deposit method:
   • Standard: Best price, async fulfillment (no fixed delay)
   • Instant: Immediate, 2-5% premium
4. Connect wallet and deposit

For Developers

1. Review Vault Contracts (ERC-7540)
2. Review Vault UX Improvements
3. Integrate via VaultRouter for best UX
4. See Code Examples

For LPs (Instant Liquidity)

1. Provide liquidity to InstantLiquidityPool
2. Earn a share of the instant-liquidity premium (2-5% per transaction); realized LP yield depends on pool utilization and is variable, not a guaranteed rate
3. See Vault UX Improvements for details

Coming Soon

Additional vault features planned for mainnet:

• Custom vault creation for institutions
• Advanced risk parameter customization
• Multi-asset vaults
• Cross-chain vault deployment
• Secondary market for pending claims

See Also:

• Vault Contracts (ERC-7540)
• Vault UX Improvements
• Contract Addresses
• Noderr White Paper v7.1
• Protocol Architecture