Stablecoin Savings Layer

The Savings Layer is the core of Nester's MVP. Users deposit stablecoins (USDC, USDT, DAI) into protocol-managed vaults that auto-allocate across multiple yield sources.

How It Works

User deposits 1,000 USDC
        │
        ▼
┌───────────────────────────────────────────────┐
│            Balanced Vault Contract             │
│                                               │
│  User receives 1,000 nVault share tokens      │
│                                               │
│  Allocation strategy:                         │
│  ┌─────────┐  ┌─────────┐  ┌─────────┐      │
│  │ Blend   │  │ Kamino  │  │ Aave    │      │
│  │ 40%     │  │ 35%     │  │ 25%     │      │
│  │ 400 USDC│  │ 350 USDC│  │ 250 USDC│      │
│  │ 8.5% APY│  │ 10% APY │  │ 9% APY  │      │
│  └─────────┘  └─────────┘  └─────────┘      │
│                                               │
│  Blended APY: 9.08%                          │
│  After 1 year: 1,000 → 1,090.80 USDC        │
└───────────────────────────────────────────────┘

Vault Types

Vault	Target APY	Risk Profile	Strategy
Conservative	6–8%	Minimal	Battle-tested lending protocols only
Balanced	8–11%	Moderate	Lending + selected liquidity pools
Growth	11–15%	Higher	Newer strategies with strict risk controls
DeFi500	Variable	Diversified	Index fund of top DeFi protocols, monthly rebalanced

Share Token Model

When you deposit into a vault, you receive nVault tokens proportional to your share:

shares_minted = deposit_amount × total_shares / total_assets

Example:
  Vault has 10,000 USDC (total_assets) and 10,000 shares (total_shares)
  User deposits 1,000 USDC
  shares = 1,000 × 10,000 / 10,000 = 1,000 nVault tokens

After yield accrual (vault now has 11,000 USDC, still 11,000 shares):
  User's 1,000 shares = 1,000 / 11,000 × 11,000 = 1,000 USDC + yield

Automated Rebalancing

The rebalancer runs continuously, monitoring:

APY drift — if a protocol's APY drops below threshold, funds migrate
Risk metrics — TVL changes, exploit history, smart contract health
Liquidity depth — ensures withdrawals can be processed instantly

Rebalance trigger conditions:
  1. APY delta > 2% between current and optimal allocation
  2. Protocol TVL drops > 20% in 24 hours
  3. Security alert from monitoring systems
  4. Scheduled rebalance (weekly for DeFi500)

Maturity & Penalties

Vaults can optionally enforce time-locks:

Lock Period	Early Withdrawal Penalty
No lock	0%
30 days	1% of withdrawn amount
90 days	2.5%
180 days	5%

Penalties are redistributed to remaining vault depositors, increasing their share value.

Previous« Quick Start NextYield Layer »