Vault Strategies Overview
Moonight offers four vault strategies with different risk/reward profiles, each designed to generate yield from BTC-backed positions.
Strategy Comparison
| Vault | Strategy | Risk | Target APY | Entry Asset |
|---|---|---|---|---|
| Vault A | Delta-neutral funding rate | Low | 8-15% | BTC or USDC |
| Vault B | Leveraged BTC accumulation | High | 20-40%+ | BTC |
| Vault C | Yield optimizer (ERC-4626) | Low-Med | 6-12% | moonUSD |
| Vault D | Covered call + PT/YT | Medium | 12-25% | BTC |
How Vault Strategies Work
Vault A — Delta-Neutral
Deposits BTC → opens CDP → takes equal long+short perp positions on Extended DEX. Earns the funding rate spread while maintaining zero directional exposure. Keeper flips direction when funding turns negative.
Vault B — Leveraged BTC Loop
Deposits BTC → opens CDP → mints moonUSD → swaps to BTC → deposits more → repeats. Creates leveraged long BTC exposure (up to ~5x effective leverage at 80% LTV). Profits when BTC rises, amplified losses when it falls.
Vault C — Yield Optimizer
Accepts moonUSD deposits → allocates across Stability Pool (interest + liquidation gains), Ekubo LP (swap fees), and lending protocols. Issues vmoonUSD shares (ERC-4626). Keeper compounds daily and reallocates weekly using softmax optimization.
Vault D — Covered Call + PT/YT
Deposits BTC → writes covered call options for premium income → splits remaining yield into Principal Tokens (PT) and Yield Tokens (YT). PT holders get fixed yield at maturity, YT holders get variable upside.
Keeper Automation
All vaults require off-chain keeper bots for periodic operations:
| Vault | Keeper Action | Frequency |
|---|---|---|
| A | harvest_funding(), trigger_flip() | 8 hours, on FR sign change |
| B | rebalance(), deleverage() | On HF threshold, emergency |
| C | compound(), reallocate() | Daily, weekly |
| D | settle_epoch(), write_options() | Weekly, on expiry |