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  • 📚Welcome to the Gauntlet VaultBook
  • đŸĻ‹Morpho Vaults
    • Morpho Vaults Overview
      • Vault Curators
      • Morpho Vault Structure
    • Prime Vaults: Conservative Yield Strategies
    • Core Vaults: Competitive Yield Strategies
    • Frontier Vaults: Maximum Yield Strategies
    • Ecosystem Vaults
    • Curation Methodology and Risk Factor Overview
      • Due Diligence
      • Automated Risk Management Solutions
      • Market Allocation Strategy
    • Incentives and Performance Fees
    • Vault Curation Considerations: A Deeper Dive
      • Risk Exposure
      • Market Utilization
      • Market Rate
      • Asset Liquidity
      • Liquidations and Liquidators
    • Resources
  • đŸŽī¸Drift Vaults
    • Drift Vaults Overview
      • Our Approach to Drift Strategies
      • User Flow
    • hJLP
    • hJLP 2x
    • hJLP (In Kind)
    • Gauntlet Basis Alpha
    • Gauntlet Plus
    • Risk Considerations and Security
    • Disclosures
    • FAQs
    • Helpful Links
  • Symbiotic Vaults
    • Symbiotic Vaults Overview
    • Gauntlet Restaking Vaults
    • Restaking Vault Strategy
    • Restaking Research and Talks
      • Blogs and Papers
      • Presentations and Events
    • Resources
  • Levered RWA Strategy
    • Strategy Mechanics
    • Yield Optimization Engine
    • Benefits and Market Applications
    • Strategy in Action
    • Resources
  • đŸ—‚ī¸Gauntlet Resources
  • â„šī¸Disclosures
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  1. Levered RWA Strategy

Strategy Mechanics

Asset Supply: Users supply their RWA tokens into a Gauntlet-curated vault, which executes the yield optimization strategy within our sophisticated risk management framework.

Collateralization: The vault deposits the RWA tokens as collateral on a leading lending protocol and borrows stablecoins against this collateral.

Strategic Leverage: The borrowed stablecoins are used to purchase additional RWA tokens, which are again deposited as collateral.

Dynamic Optimization: This loop remains active subject to risk levels established by our quantitative yield optimization engine, which continuously monitors yield and borrow rates across DeFi markets.

Automated Risk Management: Our engine dynamically adjusts leverage ratios and collateralization levels based on market conditions, removing the need for manual position management.

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Last updated 22 days ago

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