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Exponent Strategy Vaults

Exponent Strategy Vaults allow managers to run managed strategies across Exponent and DeFi protocols with full onchain transparency.
Exponent Strategy Vaults Cover
They provide a permissioned execution environment where onchain interactions are governed by policies defined by the manager, visible to vault depositors in real time.

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Strategy Deployment and Policies

Managers control where vault capital can go by setting onchain policies that whitelist specific protocols and interactions. Any transaction that doesn’t match an approved policy is rejected automatically. These policies are publicly readable onchain, so depositors can always see exactly where their capital can be deployed.

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Squads Infrastructure

Exponent Strategy Vaults’s policies are built on Squads, Solana’s smart account standard securing billions in TVL. The Squads Smart Accounts program has been audited by OtterSec, Offside Labs, and formally verified by Certora.

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Role-Based Control

Strategy Vault governance is enforced through distinct roles, each with scoped permissions. Roles can be assigned to individual wallet addresses. A single entity may hold multiple roles, but it is recommended to distribute them across separate addresses.
RoleResponsibilities
ManagerFull control: initialize the vault, manage all other roles, update strategy positions
CuratorAdd or propose new policies, configure token entries, define which assets the vault accepts and how they are priced
AllocatorExecute onchain interactions on behalf of the vault within the bounds of approved policies
SentinelSafety operations: can pause or freeze vault operations if conditions require it. Typically maintained by Exponent

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Deposits and Withdrawals

Depositors send supported tokens into the vault and receive LP tokens proportional to their share of total assets under management. LP tokens are standard SPL tokens, freely transferable and composable. Withdrawals follow a queued model. Depositors queue a withdrawal request, the vault manager fills it from available liquidity, and the depositor then executes to receive their tokens. The queued withdrawal model ensures vault managers maintain control over liquidity allocation without forcing immediate liquidation of strategy positions.

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Vault Valuation

Total AUM reflects the combined value of all capital in the vault — both idle and deployed.
  • Idle capital — tokens held in the vault that have not been allocated to any strategy position.
  • Deployed capital — tokens allocated to strategy positions. These are priced using the Exponent Prices oracle, which supports direct price feeds and protocol-level position valuations (e.g. Kamino lending positions).

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Vault LP Token Price

Each depositor’s share of the vault is represented by LP tokens. The price of one LP token is: 
lp_token_price = total_aum / total_lp_supply
As strategy positions generate yield, total AUM grows while LP supply stays constant — increasing the LP token price for all holders.

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Deposit Cap

Vault managers can set a maximum LP supply to cap total deposits. This is useful when a strategy is optimized for a specific AUM range and may not perform the same at significantly larger scale.

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Fees

Strategy Vaults support three different types of fees. All fee rates are stored onchain and readable from the vault account, giving depositors full transparency before they deposit. All fees are denominated in LP tokens and directed to the vault’s fee treasury.

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Management Fee

A continuous, annualized percentage charged on assets under management. The fee accrues continuously over time and is collected periodically by the manager. For example, a 2% management fee on a vault with $10M in AUM would accrue roughly $200K per year, distributed proportionally across all depositors.

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Withdrawal Fee

A fee applied when the manager fills a queued withdrawal. A portion of the LP tokens being withdrawn is transferred to the fee treasury before the remaining LP is burned and the depositor receives the underlying tokens. 
fee_lp = lp_amount × withdrawal_fee_rate

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Instant Withdrawal Fee

An additional fee for withdrawing directly from vault reserves without waiting for the manager to fill the request. This fee is added on top of the standard withdrawal fee. 
total_fee = withdrawal_fee_rate + instant_withdrawal_fee_rate
Instant withdrawals bypass the queued withdrawal flow, allowing depositors to pull from idle reserves immediately at the cost of the higher combined fee.