MAX Vault-as-a-Service (VaaS)
Unlock Yield, Securely Scalable
Overview
The MAX Vault-as-a-Service (VaaS) framework enables third-party protocols, asset managers, and institutional partners to launch customized MAX Vaults utilizing the YieldNest infrastructure. These programmable, composable yield layers integrate seamlessly with our execution engine and Layer 1 settlement guarantees, enabling secure, transparent, and efficient deployment of on-chain and off-chain yield strategies.
Vaults launched under VaaS operate with independent subDAO governance, offering full control over capital allocation, rebalancing logic, fee structures, and underlying strategies.
Purpose
MAX Vault as a Service (VaaS) is a product offered by YieldNest, enabling external issuers of real-world assets (RWA) or DeFi products on-chain, such as ETH treasury companies or projects building DeFi solutions, to leverage the YieldNest technology stack to launch their own vaults. We provide comprehensive support for structuring, management, and integration into the broader DeFi ecosystem.
VaaS simplifies DeFi participation by offering a managed service for yield generation. It delivers composable single-token vaults that unify multiple yield sources into efficient, managed assets. Users gain access to risk-adjusted, auto-compounded returns without managing underlying strategies, leveraging automation, governance, and Layer 1 settlement for optimal performance.
There are 2 different VaaS options:
Launch a YieldNest-managed vault on the MAX infrastructure
Register and operate a strategy within a YieldNest vault
Why Partner with YieldNest for VaaS?
In a rapidly evolving DeFi landscape, YieldNest stands out by combining battle-tested infrastructure with a network of top-tier partners to drive TVL growth and yield optimization. Our ecosystem includes collaborations with leading protocols like Curve, Balancer, Chainlink, and Pyth, as well as security firms such as ChainSecurity and Zokyo. This ensures your custom vault benefits from seamless integrations, enhanced liquidity, and institutional-grade security.
By partnering with YieldNest, you unlock:
Accelerated TVL Growth: Wrap your strategies into DeFi-native assets to attract broader distribution and deposits.
Revenue Alignment: Our fee model creates a win-win flywheel, where increased TVL generates shared revenue—e.g., at $600M TVL and 10% average APY, the YieldNest DAO could earn $6M annually from performance fees alone, while boosting emissions to your vault.
Expert Support: From initial structuring to ongoing optimizations, our team handles the technical heavy lifting so you can focus on your core assets.
Proven Ecosystem Impact: Join a platform backed by contributors like Yearn, Convex, and EigenLayer integrations, powering high-risk-adjusted returns (up to 35%+ APY in DeFi strategies).
Launch your vault and tap into YieldNest's network to scale efficiently, many partners see rapid adoption through our composable designs.
Key Benefits
Battle-Tested Implementation: Proven infrastructure with rigorous audits and real-world deployment.
Automatic Rebalancing: Optimization for capital allocation across whitelisted strategies.
Composable Underlying Strategies: Modular design allows integration of diverse on-chain and off-chain yields.
Continuous Monitoring and Improvements: Real-time oversight with ongoing strategy enhancements.
On-Chain Accounting: No black boxes—full transparency in all transactions and performance metrics.
Flexible Settlement Layers: Supports Ethereum L1, L2s, or alternative L1s based on client preferences.
Customizable Governance and Support: SubDAO-controlled parameters with dedicated YieldNest assistance.
Risk Tranches and Durations: Optional incorporation of junior/senior tranches or fixed durations for tailored risk profiles.
ERC-4626 Compliance: Ensures native integration with DeFi protocols, aggregators, and automated vaults.
Core Features
ERC-4626 Compliant: Integrates natively with DeFi protocols, aggregators, and automated vault infrastructure.
Coprocessor: Optimizes capital allocation across whitelisted strategies based on real-time yield, duration, and risk.
SubDAO-Controlled Parameters: Vault creators govern whitelisting, strategy curation, risk flags, and withdrawal conditions.
On-Chain Transparency: All strategy rebalances, performance data, and yield distributions are visible and verifiable on-chain.
Withdrawal Buffer Layer: Ensures liquidity via dynamic buffers and optional secondary market integrations (e.g., Curve pools).
Who Should Use VaaS?
RWA Protocols: Ideal for those seeking liquidity layers and programmable on-chain strategies for real estate, credit, or infrastructure assets.
Stablecoin Issuers: Allocate reserves to tokenized yield-bearing assets with trustless management.
Treasuries & DAOs: Access diversified off-chain returns through a transparent, auditable structure.
DeFi Projects and ETH Treasuries: Build custom vaults for yield optimization without in-house development overhead.
Transparency & Risk Management
Tokenized Property Registry: All RWA assets are fully on-chain with live metadata for verifiable ownership and performance.
SubDAO Governance: Strategy rotations, fee updates, and whitelist changes are managed via proposals and time locks.
Risk-Adjusted Allocations: Yield-to-maturity, liquidity scoring, and regional diversification ensure sustainable returns.
Audits & Compliance: Periodic audits, off-chain escrow confirmations, and risk oracle integrations maintain accountability.
Guard Validation Engine: A core security layer that enforces on-chain rules for all transactions processed by the coprocessor, enhancing safety, transparency, and governance.
The modular architecture allows strategies to synchronize with their primary settlement layer. For instance, a vault might settle on Ethereum L1 while integrating strategies across L2s or other chains via trustless data propagation.
L1 Settlement in VaaS
DeFi's 24/7 markets require real-time settlement for accuracy and cohesion. MAX Vaults provide a unified framework to:
Synchronize underlying strategies, asset states, and accounting records.
Track Net Asset Value (NAV) in real-time.
Ensure seamless accounting across integrated strategies.
This prevents inefficiencies, inconsistencies, or vulnerabilities from fragmented data, delivering a reliable and transparent service.
MAX Vault Architecture
Each MAX Vault is configured with:
Price Asset: The denomination asset (e.g., ETH or USD equivalents).
Primary Underlying Asset: The core yield-generating asset (e.g., WETH or stablecoins).
Accounting Layer: The Layer 1 settlement chain (e.g., Ethereum L1).
Other Underlying Assets: Additional assets for diversified yield optimization.
Users deposit assets to receive share tokens, with internal modules like the RateProvider for pricing and the Coprocessor for allocation and accounting. The Buffer Strategy, fully ERC-4626 compliant, maintains liquidity for withdrawals. For more details, refer to the YieldNest General Protocol Assessment: https://www.llamarisk.com/research/yieldnest-general-assessment.
YieldNest's composable and flexible design allows us to tailor setups to client requirements, ensuring maximal efficiency, security, and functionality.
Case Study: ynRWAx – Tokenized Real Estate MAX Vault
ynRWAx is a MAX Vault created by a third-party RWA protocol to tokenize and yield-optimize a portfolio of real estate assets across varying maturity profiles. Users gain exposure to tokenized residential, commercial, and development properties with built-in auto-compounding yield and clear on-chain audit trails.
This partnership demonstrates how VaaS can transform a $600M TVL strategy into a DeFi-native product, attracting wider users and generating sustainable 10–15% net APY while aligning incentives for all stakeholders.
Vault Specifications (Example)
Accepted Assets: USDC, USDT.
Vault Token: ynRWAx.
Target APY: 10–15% (net of fees).
Settlement Layer: Ethereum L1.
Custody Layer: Licensed RWA custodians with on-chain proof-of-ownership.
Capital & Yield Flow
Users deposit accepted assets (e.g., USDC/USDT) and receive the vault token (e.g., ynRWAx).
Funds are allocated across tokenized strategies via the Coprocessor.
Income (e.g., rental yields + loan repayments) flows into the vault and auto-compounds.
Withdrawals are fulfilled from the buffer layer or optional secondary market pools (e.g., ynRWAx/crvUSD).
Express withdrawals use a dynamic buffer that holds a portion of vault assets in liquid form, adjusting automatically based on activity to support redemptions without disrupting long-term strategies.
YieldNest Protocol Fees
VaaS employs a straightforward fee structure to align incentives between the protocol, users, and partners. This fee flows to the YieldNest DAO to reward veYND holders and incentivize gauge emissions toward the vault.
Simplified Example Calculation
Consider a third-party RWA protocol with a real estate strategy targeting $600M in TVL and offering 10–15% APY. By wrapping it into ynRWAx via VaaS, it becomes a DeFi-compatible product, enhancing liquidity and accessibility.
Assuming 10% average APY:
Annual yields generated: 10% of $600M = $60M.
10% performance fee to YieldNest DAO: 10% of $60M = $6M per year.
This $6M revenue to the DAO incentivizes veYND holders to direct extra YND emissions toward ynRWAx, boosting its APY and attracting more deposits.
Synergistic Flywheel
This design creates a win-win flywheel:
Partner Benefits: Increased TVL and broader DeFi distribution through YieldNest's ecosystem.
YieldNest DAO Benefits: Revenue from performance fees supports protocol growth.
veYND Holders Benefits: Motivated to vote for extra YND incentives to ynRWAx, as higher TVL means more fees and rewards.
User Benefits: Higher emissions lead to enhanced APY, driving more adoption and TVL, reinforcing the cycle.
The result is a synergistic loop where all parties benefit: More TVL generates more yields and fees, which fund more incentives, attracting even more capital.
For more on YieldNest tokenomics, see: https://docs.yieldnest.finance/governance-and-tokenomics/ynd-and-veynd-tokenomics.
Get Started with VaaS Today
Ready to unlock new yield opportunities and scale your protocol? Partner with YieldNest to deploy a custom MAX Vault tailored to your needs.
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