Vault Management

Yield Delta's vault system provides secure, gas-optimized yield generation using ERC-4626 compatible smart contracts with advanced AI optimization.

Overview

Our vault architecture combines traditional DeFi vault functionality with cutting-edge AI-powered optimization specifically designed for the SEI Network's high-speed environment.

Key Features

• ERC-4626 Compatibility: Standard vault interface for maximum interoperability
• AI-Driven Optimization: Machine learning algorithms continuously optimize positions
• Gas Efficiency: Optimized for SEI's 400ms block finality
• Multiple Strategies: Support for various yield generation approaches
• Auto-Compounding: Automatic reinvestment of rewards

Vault Types

Concentrated Liquidity Vaults

Strategy: Automated concentrated liquidity provision on DEXs

interface ConcentratedLiquidityVault {
  tokenA: Token;
  tokenB: Token;
  fee: number;        // Pool fee tier (0.01%, 0.05%, 0.3%, 1%)
  tickSpacing: number; // Price range granularity
  strategy: {
    rebalanceFrequency: number; // Rebalance every N blocks
    riskTolerance: 'low' | 'medium' | 'high';
    maxSlippage: number;        // Maximum allowed slippage
  };
}

Benefits:

• Higher capital efficiency than traditional LP
• AI-optimized tick ranges for maximum fees
• Automatic rebalancing to maintain optimal positions
• Impermanent loss protection through hedging

Target APY: 15-45% depending on pair and market conditions

Yield Farming Vaults

Strategy: Automated yield farming across multiple protocols

interface YieldFarmingVault {
  protocols: Protocol[];      // Supported farming protocols
  assets: Token[];           // Supported deposit tokens
  strategy: {
    allocation: Record<string, number>; // Protocol allocation %
    harvestFrequency: number;          // Auto-harvest timing
    compoundingRatio: number;          // % of rewards to compound
  };
}

Benefits:

• Diversified risk across multiple protocols
• Automated harvesting and compounding
• Gas-efficient batch operations
• AI-driven allocation optimization

Target APY: 8-25% with lower volatility

Arbitrage Vaults

Strategy: Automated arbitrage opportunities across SEI ecosystem

interface ArbitrageVault {
  exchanges: DEX[];          // Monitored DEXs
  tokens: Token[];          // Arbitrage token pairs
  strategy: {
    minProfitThreshold: number;    // Minimum profit to execute
    maxPositionSize: number;       // Risk management
    executionSpeed: 'fast' | 'optimal'; // Speed vs profit optimization
  };
}

Benefits:

• Market-neutral strategy
• Profit from price inefficiencies
• Low correlation with market movements
• High-frequency AI execution

Target APY: 12-30% with consistent returns

Vault Architecture

Smart Contract Structure

contract YieldDeltaVault is ERC4626, Ownable, ReentrancyGuard {
    // Core vault state
    IERC20 public immutable asset;
    string public strategy;
    uint256 public totalAssets;
    uint256 public totalSupply;
    
    // Fee structure
    uint256 public managementFee = 200;    // 2% annual
    uint256 public performanceFee = 1000;  // 10% of profits
    uint256 public constant MAX_FEE = 2000; // 20% maximum
    
    // AI integration
    address public aiOracle;
    uint256 public lastRebalance;
    uint256 public rebalanceInterval = 3600; // 1 hour minimum
    
    // Position tracking
    struct Position {
        uint128 liquidity;
        int24 tickLower;
        int24 tickUpper;
        uint256 fees0;
        uint256 fees1;
    }
    
    mapping(address => Position) public positions;
    
    // Core ERC4626 functions
    function deposit(uint256 assets, address receiver) 
        external override nonReentrant returns (uint256 shares);
        
    function withdraw(uint256 assets, address receiver, address owner)
        external override nonReentrant returns (uint256 shares);
        
    function redeem(uint256 shares, address receiver, address owner)
        external override nonReentrant returns (uint256 assets);
    
    // AI-powered functions
    function aiRebalance(RebalanceParams calldata params) 
        external onlyAIOracle;
        
    function updateStrategy(StrategyParams calldata params)
        external onlyOwner;
}

User Interface

Vault Dashboard

The vault interface provides comprehensive information and controls:

interface VaultDashboard {
  overview: {
    totalDeposited: number;
    currentValue: number;
    unrealizedPnL: number;
    realizedPnL: number;
    shares: number;
    apy: {
      current: number;
      average7d: number;
      average30d: number;
    };
  };
  
  performance: {
    timeline: PerformanceDataPoint[];
    benchmark: BenchmarkComparison;
    fees: FeeBreakdown;
    transactions: Transaction[];
  };
  
  actions: {
    deposit: (amount: number) => Promise<TransactionResult>;
    withdraw: (amount: number) => Promise<TransactionResult>;
    rebalance: () => Promise<TransactionResult>;
  };
}

Deposit Flow

1. Select Vault: Choose from available vault strategies
2. Enter Amount: Specify deposit amount with balance validation
3. Review Terms: Confirm fees, risks, and expected returns
4. Execute Transaction: Submit to blockchain with gas estimation
5. Confirmation: Receive transaction hash and updated position

Risk Management

Automated Risk Controls

interface RiskManagement {
  maxDrawdown: number;        // Maximum acceptable loss
  stopLoss: number;          // Automatic exit threshold
  positionLimits: {
    maxSinglePosition: number;   // Per-position size limit
    maxTotalExposure: number;    // Total exposure limit
    diversificationMin: number;  // Minimum diversification
  };
  
  monitoring: {
    realTimeRisk: boolean;
    alertThresholds: AlertConfig;
    automaticActions: ActionConfig;
  };
}

Risk Metrics

Analytics & Reporting

Performance Tracking

interface VaultAnalytics {
  returns: {
    daily: number[];
    cumulative: number;
    benchmark: number;
    alpha: number;      // Excess return vs benchmark
    beta: number;       // Market correlation
  };
  
  risk: {
    volatility: number;
    sharpe: number;
    maxDrawdown: number;
    var95: number;
  };
  
  operations: {
    rebalanceCount: number;
    gasEfficiency: number;
    successRate: number;
    averageSlippage: number;
  };
}

Fee Transparency

All fees are clearly displayed and tracked:

• Management Fee: 2% annually, charged continuously
• Performance Fee: 10% of profits above high water mark
• Gas Costs: Actual blockchain fees (typically 0.001-0.005 SEI)
• Slippage: Market impact of large trades

Getting Started

Quick Deposit

1. Connect Wallet: Ensure you have SEI for gas fees
2. Choose Vault: Select strategy based on risk preference
3. Deposit Funds: Minimum 1 SEI, maximum varies by vault
4. Monitor Performance: Track returns in real-time

Best Practices

• Start Small: Begin with small deposits to understand the system
• Diversify: Use multiple vault strategies to reduce risk
• Monitor Regularly: Check performance and rebalance if needed
• Understand Fees: Factor in all costs when calculating returns

Vault management combines the security of traditional DeFi with the intelligence of AI optimization.