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VaultCraft

VaultCraft is a permissionless infrastructure for deploying custom yield strategies with perpetual call options on any chain. VCX holders, or VaultCraftDAO, are responsible for all of VaultCraft's software development. With you VaultCraft users can:

  • Optimize yield with Smart Vaults
  • Integrate and deploy custom DeFi strategies with SDK
  • Zap and deposit from any chain in 1 click
  • Earn call options (oVCX) with VaultCraft's flagship products
  • Multiply oVCX rewards by locking VCX liquidity
  • XP points for users interacting with VaultCraft's

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Overview

VaultCraft is a censorship resistant DeFi protocol that allows anyone to deploy and LP automated yield strategies with programmed perpetual call options. All revenue earned from users exercising options is used to buyback VCX from the market.
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VaultCraft uses a VaultFactory endorsed by the protocol to ensure the safety of strategies and contracts. These vaults can interact with various protocols through the ERC4626-Wrapper and be stacked on each other. [2]

VaultCraft offers specialized module functionality for all DeFi primitives, significantly reducing the capital and time needed for both retail and enterprise to expand their DeFi exposure and offerings. It allows users with minimal coding knowledge to easily mix and match protocols and strategies to create complex DeFi products. The protocol aims to provide modular tooling for both enterprise and retail users to create automated yield-generating asset strategies, contributing to the scalability of the DeFi ecosystem. [2]

History

In 2021, PopcornDAO emerged as a community-driven “DeFi for good” protocol. Over time, the project evolved, leading to the introduction of VaultCraft v1, which aimed to simplify creating and depositing funds into vault strategies with perpetual call options across the EVM. [3]

Looking forward, VaultCraft v1.5 to introduces auto-rebalancing multi-strategy and leveraged Smart Vaults, offering users diversified exposure to any crypto and DeFi narrative with increased capital efficiency . This shift in vision prompted a rebranding, consolidating the project under the name VaultCraft to streamline communication and reflect a new era of development and innovation. [3]

Technology

DeFi Automations

As it stands, VaultCraft has wrapped over 50 DeFi primitives that users can use in underlying strategies or Smart Vaults. Notable protocols include:

Smart Vaults

Smart Vaults (formerly Sweet Vaults) are self-custodial, permissionless, and automated asset strategies that generate yield on single-asset crypto deposits. Smart Vaults also have gauges that distribute oVCX, the protocol’s perpetual call option on the governance token, VCX. Vaults were created as a response to yield farming and liquidity mining that made searching for the highest yield much more complex than just switching between different lending protocols. Smart Vaults are not necessarily yield farming strategies. The underlying strategy may vary, but the principle remains the same.

Users need to lock their VCX with in the 20 WETH 80 VCX Balancer pool for vote-escrowed VCX. The more veVCX, the higher the oVCX multiplier will be, up to 5X in oVCX rewards. This mean that users can max boost oVCX rewards up to 5X on top of their Smart Vault deposits.

LRT Smart Vaults

In January 2024, VaultCraft unveiled the Smart Vault, simplifying the process of depositing into rsETH while maximizing rewards. Restaking can be intricate, involving EigenLayer deposits using methods like ETH, LSTs, or LRT protocols, with differing rewards for each LST deposit. VaultCraft streamlines this process by offering a straightforward path from ETH to ETHx to rsETH, ensuring users receive optimal boost rewards from Stader and KelpDAO while retaining EigenLayer points and yield. VaultCraft’s oVCX mechanics also provide weekly emissions to enhance a vault’s , adding further user benefits. [5]
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LRT Lend

VaultCraft, in collaboration with Ion Protocol, introduced LRT Lend, an automated money market designed to provide users with an additional yield on their ETH, along with extra LRT and oVCX rewards. Ion Protocol specializes in lending, specifically tailored to support staked and restaked assets in a secure and capital-efficient manner. Users can deposit various validator-backed assets, such as Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens, into Ion, enhancing their exposure to the restaking ecosystem without facing price-based liquidation risk. Additionally, lenders can earn the highest ETH-denominated yield available in the market. [8]
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V1.5

V1.5 introduces a new era of revenue optimize capital efficiency with turbo-charged rewards.
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New features:

  • XP points
  • Multichain Gauges on &
  • Leverage Farming with Money Markets
  • Multi-strategy Smart Vaults
  • Vaultron NFT Optimizer
  • Multi-zaps
  • Smart Vault Pages

XP Points

Since its release, Vaultron has seen ~900 unique addresses mint the NFT reward optimizer. Now an essential component of the protocol, Vaultron enables users to accumulate XP points, which can be converted into future VCX airdrops. The homepage has been updated to display XP points and provides tooltips on how to earn additional points by depositing into the Smart Vault and enhancing their value.

Multichain Gauges on Optimism & Arbitrum

The increasing adoption of has made transactions more costly, and as a result, claiming oVCX has become more expensive. To address this issue, VaultCraft has introduced multi-chain gauges. Users can now earn and claim oVCX through Smart Vaults gauges on Arbitrum and Optimism.

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Multi-strategy Smart Vaults

Smart Vault infrastructure is now equipped to rebalance multiple strategies in 1 vault. Users can have LRTs, RWAs, DePin, and AI all-in-one Smart Vault PLUS $oVCXwith VaultCraf’s multi-strategy infrastructure.

VaultCraft's first multi-strategy Smart Vault will be used to offer diversified exposure to all Pendle LRT markets where users can simply deposit 1 asset and earn LRT Base APR + Restaking APR + Eigenlayer Points + LRT points + VaultCraft’s call options.

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Money Markets

Not only is it now cheap to farm oVCX on L2s, but now users can increase their capital efficiency by collateralizing their crypto, borrowing, and depositing even more into Smart Vaults. VaultCraft’s money market empowers users to utilize borrowed liquidity to earn even more on their deposits.
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Vaultron Optimizer

Features:
🤖 Mint VAULTRON for free on Polygon
🎮 Engage with VaultCraft & earn XP points
🎚️ Level up from Bronze to Silver to Gold
🪂 Get VCX airdrops

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Multi-zaps

VaultCraft integrated , Enso Finance, and to allow deposits into Smart Vaults with any asset.
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Tokenomics

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VCX had the following distribution: [10]

  • Liquidity: 75,000,000.00; 7.50%
  • Partner incentives: 100,000,000.00; 10.00%
  • Fundraising: 125,000,000.00; 12.50%
  • Burn matching: 100,000,000.00; 10.00%
  • oVCX emissions: 100,000,000.00; 10.00%
  • Team: 120,000,000.00; 12.00%
  • General Public: 379,996,998.20; 38.00%

veVCX

veVCX represents the voting power of users who supply liquidity to the Balancer 80VCX-20WETH pool. It operates as a unique  implementation, with each account’s voting power determined by their veVCX holdings. For instance, locking one 80VCX-20WETH LP token for four years grants an initial balance of one veVCX. [11]

oVCX

oVCX functions as a perpetual call option token for VCX, enabling holders to purchase VCX at a discounted rate predetermined by VaultCraftDAO governance. This strategic replacement of VCX rewards with oVCX rewards aims to bolster protocol revenue for initiatives like buyback programs and resource expansion. By allowing loyal VCX holders to acquire VCX at a discounted price, oVCX optimizes incentivization efficiency, revenue reallocation, and continuous token sales. [12]

Implementing oVCX introduces several benefits, including incentivizing users to provide liquidity to  80VCX-20WETH pools to obtain VCX at a discounted rate, thereby fostering higher protocol revenue. Additionally, the transition of protocol ownership to LPs and subsequently to  is facilitated. It reduces sell pressure as users seek to enhance their yield on Smart Vaults and earn protocol revenue by increasing their veVCX holdings. Gauges distribute oVCX incentives to Smart Vault LPs based on their veVCX gauge distribution, encouraging participation in liquidity provision and contributing to protocol growth. [12]

Partnerships

Frax Finance

On December 22nd, 2022, VaultCraft, in collaboration with , announced the launch of the Fraxlend Smart Vault on . Users had the opportunity to deposit their FRAX tokens on Arbitrum into the Smart Vault, facilitating the creation of a money market on Fraxlend with a potential yield of up to 6% APY. Through the Smart Vault, FRAX deposits were utilized as collateral on Fraxlend, generating fTokens in exchange. These fTokens represented the deposited amount and accrued interest over time, with interest being generated from borrowers who paid to borrow funds against their collateral. [13]

KelpDAO & EigenLayer

VaultCraft introduced the rsETH Smart Vault, providing users with a streamlined method for depositing into rsETH and maximizing their rewards. This new offering allows users to earn various types of rewards, including native ETH staking yield, points, Kelp Miles, and AVS rewards. [14]

Key features of the rsETH Smart Vault include:

  • ETH Staking Yield: Users can earn staking rewards in native ETH.
  • EigenLayer Points: Accumulate points within the EigenLayer ecosystem.
  • Kelp Miles: Gain miles within the KelpDAO system, which can be used for various benefits.
  • AVS Rewards: Receive additional rewards from the AVS network.

In addition to these standard rewards, the rsETH Smart Vault offers several bonus incentives:

  • 3x Kelp Miles: Users earn triple Kelp Miles on deposits through KelpDAO.
  • Deposit Flexibility: Users can deposit using any bluechip asset.
  • Yield Boost: Enhance yields with oVCX rewards.
  • 100K Bonus Kelp Miles: Each rsETH deposit earns an additional 100,000 Kelp Miles from KelpDAO.
  • Extra EigenLayer Points: Up to 1 million additional EigenLayer points are available through Stader.
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VaultCraft

Commit Info

Edited By

Edited On

May 21, 2024

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