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:
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
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
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
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.
Deposit Fee
Fee for depositing into Beraborrow's managed vaults
0%
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.
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