Single-Strategy Vaults

Description

Sophisticated investors may prefer the option to have complete control over the deployment of their capital. To accommodate this, all strategies in the risk-tranched aggregator vaults are made available for direct deposit. Users will still benefit from the convenience of "one-click" execution and the passive generation of yield. Instead of being dispersed among multiple strategies, the entirety of the capital is invested in a specific strategy.

Architecture

Single-Strategy Vaults are based on EIP-5115. These types of vaults act as a wrapper for a given strategy. They allow zap-like single-sided deposits into strategies that are both safe from flashloan manipulation and provide user-defined slippage protection.

Single Strategy Vault

SCYVaults can accept ERC20 deposits via both push and pull methods. EOA accounts must always use the pull method: first approve the vault to use the underlying method, then call deposit. Contracts can send funds directly to the vault and then call deposit, saving gas required for the approval step.

When depositing funds into a vault the user provides the minimum amount of vault shares they expect to receive. This ensures that the deposit transaction are not vulnerable to sandwich attacks.

Similarly, on withdrawals, user is able to set the minimum amount of assets they expect to receive.

Vault does not rely on the price of the underlying assets. Instead, accounting is based on LP tokens, the value of which cannot be manipulate via flashloan attacks. Thus SCYVault deposits and withdrawals are protected from flashloan attacks without having to rely on oracles. It is the same reason why Uniswap LP deposits and withdrawals are not vulnerable to flashloan attacks and do not require oracles.

How it Works

Users deposit underlying assets into a respective vault. The vault automatically deploys capital and generates yield for the specific strategy on a given chain. Further, all the profits are converted to the underlying and auto-compounded by depositing the profits back into the strategy. Users are able to withdraw their funds instantaneously.