Managed Vaults

Beraborrow managed vaults are wrapper contracts for and open borrow position combined with a yield baring strategy on the NECT minted. These vaults are automatically rebalanced to avoid liquidations.

Accepted assets

The Managed Leveraged Vaults can accept many forms of collateral, including single sided assets, Kodiak Islands and even receipt tokens from other money markets. Enabling you to maximise yield on your favourite assets - in just a few simple steps.

How It Works - Step By Step Flow:

1. Auto-Compounding - Receipt Tokens are deposited into Beraborrow’s Auto-compounding Vault which maximises yield by automatically reinvesting rewards generated from the underlying PoL incentives via Infrared into the principal position - This process is fully automated, designed to maximize base yield

2. Mint NECT - The auto-compounded position LP token is used as collateral to mint NECT, Beraborrow’s stablecoin, at a fixed collateral ratio - This collateral ratio is maintained at all times to prevent liquidations

3. Deposit NECT Into the Liquidity Stability Pool (LSP) - The Vault deposits NECT into the LSP to receive sNECT, which represents their share of the LSP and its yield from liquidations

4. sNECT Is Auto-Compounded - sNECT is now automatically staked in an Auto-compounding Vault - Rewards from PoL emissions (via Infrared) are continuously harvested and compounded back into NECT

Where Your Yield Comes From:

Fees

Because the vaults combine seperate parts of the protocol togerther the fees charged on the underlying are present.

Type	Description	Amount
Deposit Fee	Fee for depositing into Beraborrow's managed vaults	0%
Nect Minting fee	Fee charged for minting NECT against collatoral. Read more here	0.5%-5%
Withdrawal Fee	Fee on withdrawing from Beraborrow's auto compounding vaults	0%
Performance Fee	The displayed APY accounts for the 5% performance fee deducted from the yield generated	5% on yield

Risks And How They’re Mitigated

• Positions are automatically unwound to maintain a 200% collateralisation ratio, meaning liquidations are totally mitigated.

• This mechanism has been live and battle tested since launch, with Beraborrow already securing over $400M in TVL with zero liquidations to date on the Managed Vaults.