Introduction

Prime Vaults is your on-chain smart saving accounts

Prime Vaults redefines on-chain saving by combining Principal protection with a Guaranteed Minimum Yield, ensuring every supported asset earns a baseline return that is always equal to or higher than its benchmark rate on Aave. It functions as a smart saving account designed to deliver the simplicity and reliability of traditional savings while leveraging the composability of decentralized finance.

When users deposit assets, their balance is conceptually divided into two components: Principal and Yield.

• The Principal represents the user’s protected capital. It is deployed across curated yield strategies but is safeguarded by the IL Reserve Fund, which absorbs volatility arising from impermanent loss or strategy fluctuations. This ensures that user principal remains intact under all supported market conditions.

• The Yield credited to users is governed primarily by the protocol’s Guaranteed Minimum Yield framework. Instead of relying solely on fluctuating strategy performance, Prime Vaults sets a min APY for each asset type and guarantees that depositors receive no less than this rate. Users may claim their accrued yield at any time.

To deliver both principal protection and a guaranteed minimum yield, Prime Vaults is built upon a unified liquidity and yield architecture. This system departs from the traditional isolated-asset model and enables efficient capital pairing, stable return generation, and consistent yield distribution across all depositors.