Fusion Vault Types

This type of fusion vault monitors market conditions and executes precise rebalances to distribute vault-deposited funds among connected markets.

Who is it for?

DeFi participants seeking to maximize yields without the hassle of manually shifting funds between protocols can benefit from automated lending optimizers.

A good example of this type of strategy is the IPOR USDC Prime vault. This Lending Optimizer integrates with multiple lending markets, including several Morpho pools, as well as Fluid, Euler, Compound, and Gearbox. It continuously tracks APYs across these platforms and simulates potential yield improvements by reallocating capital across configurations. Deployed on the Ethereum mainnet, the vault also accounts for fund transfer costs, such as gas fees, to ensure truly net-positive optimization.

Vault-deposited liquidity is automatically leveraged up or down based on market conditions, aiming to optimize yield and manage risk.

Who is it for?

Yield or token farmers who want to automate their looping strategies. Manual leveraged looping is highly time-consuming and risky.

Reservoir's srUSD Looping vault is a good example here. A TVL of $9m is automatically leveraged to $100m, boosting 7D APY to 13.65%.

This strategy optimizes asset allocation across connected markets within a single ecosystem.

Who is it for?

The Yield Optimization strategy is similar to the Lending Optimization one. It serves DeFi participants who want to remain within a specific yield ecosystem but don’t want to manually chase the best opportunities.

A good example here are Harvest Finance's Autopilots. The WETH Autopilot on Base is connected to 16 Harvest markets and automatically distributes Fusion-deposited funds to maximize yield.

The vault can rebalance multiple times daily to optimize yield, in the example vault more than 70 times/day.

The strategy provides diversified exposure to Principal Tokens (PTs) across multiple stablecoins and maturities within the Pendle ecosystem.

Who is it for?

Anyone looking for fixed-rate APRs without the hassle of rolling maturities. TAU Labs' TAU Yield Bond ETF is a good example here. It automatically distributes Fusion-vault-deposited funds across multiple PT tokens and USDC to maximize yield. The strategy rolls over PT token maturities without requiring user intervention.

The strategy provides diversified exposure to Principal Tokens across multiple stablecoins and maturities within the Pendle ecosystem.

Who is it for?

Liquidity providers seeking DEX-generated yield without frequent transfers of concentrated liquidity.

An example of the DEX LP strategy is Clearstar's Singularity Vault. It optimizes capital deployment in Ramses liquidity pools, focusing on fee-based APR and $RAM rewards by tightly pegged liquidity.