We introduce Untangled Vault, a non-custodial, cross-superchain portfolio management solution: a data-driven, automated vault designed to attract liquidity and deploy in opportunities across any EVM network to match diverse users’ risk/return appetites.
In early 2024, on Celo, we launched Untangled Pool, a tokenized private credit platform that bridges institutional-grade assets to DeFi. It enables RWA originators of invoice finance, SME loans, and emerging market credits to access the global capital market via crypto infrastructure.
Tokenized private credits are among the growing yield opportunities in DeFi. However, other yield opportunities also exist, such as over-collateralized lending, liquid staking, restaking, and liquidity provision, all of which are accessible to DeFi investors. The growth of DeFi has attracted TradFi investors to this new asset class as well.
Investors, regardless of their background—crypto-native or TradFi—often seek:
- A safe, easy way to invest and custody their holdings
- “All market” access (i.e., any protocol on any chain that fits their risk-return appetite)
- Ability to react quickly to fast-changing market conditions and security incidents such as hacks
- Regulatory compliance, particularly regarding RWAs or TradFi investors
- Avoidance of principal-agent problems when third parties are advising or managing assets on their behalf
Untangled Vault = Safe + ERC4626
Untangled Vault is built on Safe, ERC4626 tokenized vault standard with module extensions for a wide range of use cases.
Modular architecture
We have developed the following modules on top of the core:
Permissioned Access: Option for depositors in the vault to go through KYC verification first.
Asynchronous Withdrawals: A close epoch to source liquidity to fulfil withdrawal requests. Once requests are filled, the epoch will reopen for users to claim withdrawals.
Cross-Chain Communication via Axelar:
- Deposits: A hook contract enables depositors to deposit from their chain of choice. Once confirmed, a cross-chain message will mint the share into the investor’s wallet on the source chain.
- Asset Updates: Position and price data of assets in cross-chain wallets are communicated to the vault on the source chain.
Fee setting: Function allows an external manager/curator to set and receive fees for their service.
This article has more information on how it works.
Permissionless
Untangled Vault is permissionless. Anyone can launch a vault with relevant modules. You can also develop your own custom modules for your use case.
Here are the addresses for the factory contracts.
Minimal smart contract risks
At its core, Untangled Vault is simply tokenized vault standard (ERC4626) and Safe, two of the most battle-tested technology standards in DeFi without any modifications, rendering its minimal smart contract risks. We have also completed a security audit for the core plus the modules. Click for the audit report
First on Celo, USDyc
Using Untangled Vault technology, we have developed our first use case - USDyc.
USDyc vault is ready here.
What it is
USDyc is a RWA-backed liquid staking token designed as a highly composable liquidity solution that rewards users with ownership of the Untangled Protocol.
Reward
By giving users ownership of the protocol, Untangled ensures value is shared within the community. We will soon publish our token ownership roadmap, starting with Tangle Point System that rewards usage (determined by amount and length of holding of USDyc)
100% Assets-backed Stability
USDyc is 100% backed by eligible collaterals, currently equally split between tokenized money market funds and yield-acquiring stable coins.
Automated, non-custodial
Assets are held in non-custodial wallets (Safe) and auto-rebalanced by Credio, a risk oracle powered by ML models and zero-knowledge proof
Permissionless and composable
Issued and governed by Untangled DAO, USDyc is permissionless and freely composable in DeFi beyond the point of permissioned minting and burning.
It’s time to build on Celo L2
Untangled Vault represents a modular architecture built on battle-tested technologies of Safe and ERC4626. It can cater for a wide range of use cases, some of which are noted below:
- Non-custodial treasury asset management for DAOs, institutions
- Curated vaults for restaking
- Lending, RWAs or crypto-native
- Structured products
We are excited to see what you build on Untangled Vault, on Celo L2 and across the Superchain!