Multi-Asset Deposit Ratio Calculation

Deposits into multi-asset Smart Vaults need to be made in appropriate ratios between all deposited assets.

The ratio depends on the Vault its set allocation between different Strategies, and the ratio required by each of the Strategies. Plus, when flushing deposits into Strategies, deposited funds need to be divided back accordingly.

Feel free to refer to the accompanying spreadsheet with interactive calculations that follow the below procedures.

Calculation of ideal deposit ratio.

First let us have a look into how to calculate the ideal deposit ratio, based on the Vault its set allocation between the Strategies, the asset ratios demanded by the Strategies, and the exchange rate between assets (or rather between assets and USD).

Example vault

Let us say we have a vault with three Strategies, Aave, Idle and Yearn, with the following allocation set between them:

Strategy	% Allocation
Aave	60
Idle	30
Yearn	10

The above allocation means that 60% of the deposit its value should be deposited in the Aave strategy.

The vault is a "Multi-Asset Smart Vault" with deposits made in ETH, BTC, and BNB, with the following exchange rate:

Asset	USD Rate
ETH	1208.16
BTC	16404.71
BNB	270.39

Where 1 ETH costs $1206.16.

Each Strategy also has a required ratio between the assets for depositing into it:

	Aave	Idle	Yearn
ETH	1	1	1
BTC	0.071	0.074	0.076
BNB	4.3	4.5	4.6

In the case of Aave, the deposit needs 0.071 BTC and 4.3 of BNB tokens for each ETH token deposited.

Derivation A user wants to make a deposit, valued at $1,000,000. The question is now how much ETH, BTC, and BNB they need to deposit.

First, let's split this amount between the strategies based on the vault’s allocation:

	Aave	Idle	Yearn
Deposit Share	600,000	300,000	100,000

Then we can express the ratios between assets required by the strategies in $ by multiplying them with the exchange rates:

	Aave	Idle	Yearn
ETH $	1208.6	1208.16	1208.16
BTC $	1164.73	1213.95	1246.76
BNB $	1162.68	1216.76	1243.79

From this we can calculate the normalization factor per strategy by summing values for all assets:

	Aave	Idle	Yearn
Normalisation	3535.57	3638.86	3698.71

Now we can split the USD amount allocated for each strategy among the assets by multiplying it with the USD ratio and dividing by the normalization:

	Aave	Idle	Yearn
ETH $	205,029.38	99,604.72	32,664.34
BTC $	197,659.89	100,081.95	33,707.90
BNB $	197,310.74	100,313.32	33,627.76

This means that of the $600,000 of the deposit allocated to the Aave, $205,029.38 worth should be deposited in ETH. To get the number of tokens for each asset, we divide the $ values by the corresponding exchange rate:

	Aave	Idle	Yearn
ETH	169.70	82.44	27.04
BTC	12.05	6.10	2.05
BNB	729.73	370.99	124.37

From this we can get the full deposit amount by summing over the strategies:

	ETH	BTC	BNB
Tokens	279.18	20.20	1225.09

So the deposit of $1,000,000 should consist of 279.18 ETH, 20.20 BTC, and 1225.09 BNB.