Vault types

The core of Diffuse Prime is a set of ERC-4626 vaults. Each vault is based on a specific asset called base asset and offers one or more yield strategies tied to that asset.

For a given base asset, multiple vaults may exist with different risk levels. Private (whitelisted) vaults can also be created at a lender’s request. A vault’s risk level is defined by the yield strategies it offers.

All vaults sharing the same base asset are presented to lenders through a risk profile interface, which helps to manage exposure across vaults of varying risk levels.

Vault types

Vaults are grouped by their strategies and risk level:

• Stablecoin vaults – typically low- to mid-risk, designed for stable yields;

• Cross-chain vaults – built for high-liquidity, multi-chain strategies (e.g., Monad, Hyperliquid).

• Specialty vaults – isolated strategies for higher-risk or experimental tokens.

Each vault has its own parameters, including:

• Yield strategies

• Accepted collateral types (e.g., USDC, PT-lvlUSD, PT-eUSDe)

• Maximum LTV

• Maximum strategy duration (borrower loan period)

• Borrow rate (fixed)

• APY

Vault risk profile

Curators define risk level for all public vaults, helping both lenders and borrowers compare available options and expected APYs.

Lenders also have access to a personal risk profile interface to manage distribution of their deposits across different vaults. This interface is also ERC-4626 compatible.