Strategy Vaults are managed yield strategies built on top of Exponent’s interest rate markets and/or combined with leading protocols on Solana. They allow users to deposit assets and gain exposure to professional interest-rate swap strategies without manually managing interest-rate instrument positions (e.g. PT/YT) and their maturities.
How Strategy Vaults Work
Each vault is operated by a professional manager (e.g. an asset management firm or trading desk) who deploys capital across Exponent markets according to a defined mandate. The manager can combine interest rate swaps with other DeFi protocols like lending on Kamino or Loopscale. Strategy Vault characteristics:- Non-custodial - users deposits stay onchain, governed by programs, and withdrawal at anytime
- Transparent - all positions and allocations are visible onchain
- Policy-governed - strategy constraints are enforced via onchain policies, not trust. The code becomes the term sheet.
- One-click access - deposit your assets and the vault’s strategy handles the rest
Example Types of Strategies
Vaults can execute a range of strategies depending on their mandate:- Market-making strategies allocate to whitelisted assets, strip them into PT and YT, and quote both sides of the order book or market-make on the CLMM to earn spread.
- Fixed-yield strategies target fixed returns by buying PT across maturities, similar to a bond ladder strategy, as well as using credit protocols for leveraged fixed returns.
- Hedged strategies use Exponent’s interest rate swaps for rate hedging to reduce exposure to yield movements.
Strategy Vault vs. Manual Interest-rate Swap Strategy
In practice, Strategy Vaults are better suited for users seeking simplicity and delegated strategy execution, while manual strategies are better suited for advanced participants looking to express a more customized view.| Feature | Strategy Vaults | Manual Strategy |
|---|---|---|
| Capital management | Curator-managed | User-managed |
| Risk customization | Predefined strategy | Fully customizable |
| Return potential | Moderate | Potentially higher |
| UX | Simple and passive | Requires active management |
| Suitable for | Most users | Active / power users |
Depositing Into a Strategy Vault
Choose a vault
Browse available vaults on the Exponent app. Each vault shows its strategy description, asset and protocol exposures, historical performance, manager, and current APY.
Deposit
Deposit the vault’s accepted asset (e.g. SOL). The vault manager automatically allocates your deposit according to the vault’s strategy.
Earn
Returns accrue based on the vault’s strategy performance. You can monitor your position value at any time.
Safety and Risks Considerations
Strategy Vaults are not risk-free. Key risks include:- Smart contract risk Strategy Vaults depend on the vault program, Exponent’s underlying contracts, and any integrated external protocols. A bug, exploit, or unexpected edge case in any of these layers could affect vault assets or operations.
- Strategy performance risk Vault performance depends on the strategy being executed. A vault may underperform passive alternatives, but it can also generate losses depending on the positions it takes, how markets move, and how the strategy interacts with external protocols.
- Manager execution risk While onchain policies constrain what a vault manager can do, performance still depends on how well the strategy is executed. This can include trade selection, timing, rebalancing, liquidity deployment, and risk management within the vault’s allowed policy set.
All vault operations are constrained by onchain policies. Any parameter change goes through a timelock (e.g. 7 day) defined by the vault manager. The vault cannot operate outside its defined constraints.