🗳️Vaults

Learn more about the different vault types in OpenTrade's Treasury Management & Yield Product.

Loan Vaults

Each Loan Vault is a unique smart-contract based on the ERC-4626 standard that has specific parameters, including:

• Loan Type

• Eligible Collateral

• ERC-20 Vault Token

• Liquidity Asset (e.g. USDC, EURC)

• Interest Rate

• Exchange Rate

• Cut-Off Times

• Processing Times

• Fees

• User permissions

For a list of active loan vaults and more information, see here.

Vault Types

There are several different vault types available in the Treasury Management & Yield Product. Below is a summary of key details for each vault type.

Flexible Term Vaults

Flexible Term Vaults support open-ended, variable rate loans with a daily compounding exchange rate.

• Loans are open-ended; there is no fixed maturity date

• Lenders can deposit and withdraw at anytime

• Loans earn a variable interest rate that is updated daily based on a benchmark rate, less fees.

• Principal and interest automatically compound daily.

• Example: Flexible Term USDC Vault

Dynamic Vaults

Dynamic Vaults support open-ended, variable rate loans where yield is pegged to the performance of the underlying collateral.

• Loans are open-ended; there is no fixed maturity date

• Lenders can deposit and withdraw at anytime

• Loans earn a collateral rate that is pegged to the performance of the underlying collateral

• Example: High Yield Corporate Bond Vault

Fixed Term Vaults

Fixed Term Vaults support fixed term, fixed rate loans.

• Each loan has a fixed commencement date and maturity date.

• Loans earn a fixed rate of interest over the loan tenor.

• Lenders can deposit during the Investment Window and withdraw at anytime.

• Lenders can automatically compound principal and interest and rollover loans into a new loan.

• Example: Fixed Term US Treasury Bill Vaults