Key Features

Diversification through aggregation: Defi users can invest in a portfolio of DeFi assets instead of just one, thereby benefiting from risk and reward diversification.

Leverage Returns for Lower Tranches: Mezzanine and Junior Tranche users earn a higher yield pickup versus Senior Tranche users. A portion of the yield earned by Senior Tranche is passed to the lower tranches in return for loss protection. The Lower tranche allows risk-taking DeFi users to earn a leveraged return of their existing investment strategies, such as investing in LP tokens (providing liquidity to DEXs).

Yield Pickup for Senior Tranche Stakers: Risk averse users who stake into the Senior Tranches earn a higher yield pickup compared to had they staked into traditional safer vanilla yield bearing vaults, since the portfolio of assets are invested in a pool of higher risk assets. Thereby through the use of tranching low(er) risk instruments can be constructed using higher risk assets with the upside of higher yields.