Smart Vault
One-Click Yield Without Liquidation Risk
Smart Vault delivers zero liquidation risk + sustainable yield for deposited assets. Users deposit assets and receive ongoing returns without facing liquidation under any market conditions.
When users deposit assets into Smart Vault, the protocol mints and stakes the satUSD directly in satUSD staking pools.
What Smart Vault Solves
Traditional DeFi has required users to choose between earning yield and maintaining asset safety.
Users had to actively manage collateral ratios, monitor liquidation thresholds, and risk losing their assets during market volatility.
Smart Vault solves these challenges:
Eliminates liquidation risk - your assets are never at risk of forced liquidation
Removes position management - no need to monitor collateral ratios or health factors
Provides sustainable yield - continuous returns without active management
Ensures asset safety - 1:1 deposit and withdrawal guaranteed
Smart Vault solves these through automated strategy deployment and internal satUSD circulation that never reaches user wallets.
Key Features
One-Click Deposit
Single transaction deploys your assets to automatically mint stablecoins and stake for yield—without managing collateral ratios or position levels.
No Liquidation Risk
Smart Position Management automatically mints and stakes stablecoin during deposits and withdrawals, eliminating liquidation risks for all locked assets.
Sustainable Yield
Deposited assets stay active through strategy modules generating real returns via CeDeFi arbitrage, DeFi protocols, and RWA investments for consistent yield.
How Smart Vault Works
Deposit assets (BTC, ETH, USDT/USDC) into Smart Vault
Protocol mints satUSD based on the value of the underlying assets
satUSD stakes automatically in staking pool
Your assets work - deployed to DeFi/CeDeFi yield strategies
Earn rewards from asset performance and staking pool
Detailed Mechanism
Internal satUSD System:
Smart Vault's breakthrough is minting satUSD that users never receive. When you deposit, the system applies a staking factor (0-100% range) based on governance voting
Formula : Underlying Value × Staking Factor = Internal satUSD staked
Dual Revenue System:
Asset Strategies: Your deposited assets deploy to integrated strategies including Morpho lending, Pendle fixed-rate products, and CeDeFi arbitrage—focusing on sustainable yields rather than airdrop farming.
Protocol Revenue Distribution: Internally minted satUSD stays in staking pools and earns staking rewards—similar to MakerDAO's sDAI model where Treasury yields convert to staking rewards without external circulation.
Example: 10 ETH Deposit ($45,000)
Setup: Deposit 10 ETH → 75% staking factor applied → $33,750 satUSD staked internally
Dual Deployment:
Your 10 ETH: Works across Morpho, Pendle, CeDeFi strategies
$33,750 satUSD: Stays in staking pools earning staking rewards
Rebalancing: When market crash (ETH to $22,500), the traditional CDP model liquidates your ETH. Smart Vault keeps your 10 ETH safe, system rebalances satUSD minted and staked amount through oracle updates, yield continues.
Withdrawal: Request anytime → auto-unwind → receive full 10 ETH + yields.
User holds debt?
Yes
✅ No
Liquidation risk?
Yes
✅ None
Yield source
External protocols
✅ Automated strategy deployment + protocol revenue
User experience
Manage debt, repay, face liquidation
one-click deposit, only yield
Asset safety
Can be liquidated
Always protected
User management
Active monitoring required
✅ Auto-managed vault
Market stress response
Liquidations
No Liquidation
Auto-rebalancing
Risk Management
Oracle Integration: Every contract interaction triggers price updates, automatically determining optimal satUSD amounts based on current asset values and maintaining proper collateral ratios.
Governance Parameters: $RIVER token voting adjusts staking factors for rewards optimization across different assets.
Market Stress Response: If BTC drops 50%, the system rebalances automatically—your assets stay safe while maintaining yield generation.
Why This Innovation Matters
For Users
Transform passive holdings into yield generators without complexity or risk.
Access institutional-grade strategies through simple interfaces while maintaining complete asset protection—your assets can never be liquidated.
For DeFi Ecosystem
Eliminates liquidation barriers that prevent mainstream adoption.
Proves automation can outperform manual management while creating new standards for user-friendly DeFi products.
For River
Creates sustainable satUSD demand across all chains while demonstrating minting/usage separation. Strengthens River's chain-abstraction stablecoin leadership position.
Industry Impact
Establishes "No-Liquidation Yield Systems" as a new category—proving high yields don't require liquidation risks and setting new DeFi UX standards.
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