Dividing the Deposit Among the Strategies

The deposit the user makes into the Smart Vault is not instantly routed to the underlying Strategies but is a multi-step process designed to lower the deposit costs and to allow for fair distribution of yield.

The process works in flush cycles:

• User deposits are gathered on the Smart Vault level

• At some point the gathered deposits are flushed to the Strategy levels, starting a new flush cycle Vault Flush Implementation

• Each strategy performs a DHW on its own cycle, routing the gathered assets to the underlying protocol

There are a few things to note here:

• All deposits to a Smart Vault made in the same flush-cycle, need to adhere to the same ratio between the assets

• The ratio is calculated based on exchange rates and Strategy ratios at the last flush time

• The exchange rates and strategy ratios can change during the flush cycle

The exchange rate and strategy ratios that are the basis for deposit ratio calculation can change during the flush cycle.

This means that, generally, the actual deposit ratio does not match the ideal one at the time of the vault flush so we can not simply use the above formula to divide the deposit among the strategies.

The following subsection presents the chosen scheme for how to divide the deposit among the strategies.

To help follow the scheme, we take the example vault as described here with the following actual and ideal deposit:

	ETH	BTC	BNB
Ideal	100.00	7.23	438.81
Actual	100.00	7.00	420.00

Swap-less scheme: Divide based on ideal flush division